Tamil Nadu Buildings Act 1960: An Analysis
During the Second World War, the country faced rising inflation, soaring cost of living, increase in urban population and scarcity of accommodation. In order to impose control over rent and unreasonable eviction of tenants, rent control orders were issued in 1941. The order was renewed periodically and ultimately Act XVII of 1960 came into force.
Rent Control Act is a State subject and the State Government has the exclusive jurisdiction to legislate on the subject. Reforms in rental legislation to balance the interests of both landlords and tenants were recommended by expert bodies such as the Economic Administrative Reforms Commission and the Industrial Commission Organisation. The National Housing Policy also envisages suitable amendments in the Rent Control laws as one of the measures to stimulate investment in rental housing. The Urban Development Ministry prepared model rent control legislation in the form of a broad framework.
Standard Rent
Standard rent is calculated on the basis of 10 per cent per annum of the aggregate amount of the cost of construction and the market price of the land on the date of commencement of construction. The standard rent shall be enhanced according to the provisions of the Third Schedule.
The cost of construction shall include cost of electrical fittings, water pumps, overhead tanks, storage tank and other fixtures. It shall be the actual amount spent on construction, and where such amount cannot be ascertained the cost shall be determined according to the scheduled rates of the State Public Works Department. The market price of the land shall be the price at which the land was bought as determined from the registered deed of sale, if construction commenced in the year of registration.
Other charges
A tenant is also liable to pay the following charges to the landlord-
• 15 per cent of the rent for the amenities such as air-conditioner, electrical heater, water cooler, geyser, refrigerator, cooking range, furniture and playground meant for exclusive use by the tenant
• Maintenance charges amounting to 10 per cent of the rent
• Without prejudice to the landlord’s liability to pay the property tax to the local authority, the pro rata property tax in relation to the premises. In order to calculate the monthly charges payable by the tenant to the landlord towards the property tax, the amount paid or payable as property tax for the immediate preceding year or the estimated tax payable shall form the basis
• The landlord shall be entitled to receive from the tenant charges for electricity or water consumed or other charges levied by a local or other authority, which is payable by the tenant
Landlord’s perspective
Increase in rent
The rent enhancement shall be calculated, compounding on a yearly basis, with reference to the date of agreement in the case of rental agreement and the date of commencement of construction in the case of standard rent.
The base calculation of rent enhancement after the commencement of this Act shall be the rent payable in the year as if the total enhancement of rent due at the commencement of this Act came into effect immediately rather than gradually over a five-year period, and such annual enhancement of rent shall be payable in addition to the graduated enhancement.
Provided also that when the landlord is a widow, a disabled person or a person aged 65 or more, the rent enhancement shall not be spread over five years but come into force with immediate effect.
Information to be provided to police
In Tamil Nadu, the police had asked landlords to file information about tenants, including their photographs. The Tamil Nadu Police had posted an application form for information on tenants on its website www.tnpolice.gov.in where the landlord is required to give his tenant’s details, tenant’s present and permanent address, the tenant’s photographs as well as his/her ID proof. While the police say that their intention is to track down criminals and create a database of tenants, a PIL has been filed in the Madras High Court opposing this move as tenants feel that this is violative of their privacy and that the order must be quashed.
Law on sub-letting
If the lease agreement does not confer any right on the tenant to sub-let the premises or any portion thereof, then the landlord on gaining knowledge of such sub-letting can file a petition in the Rent Control Court at Chennai if the premises is more than five years old. On the other hand, if the premises is less than five years old, then the only option for the landlord is to institute a suit in a civil court of competent jurisdiction for eviction of the tenant and the sub-tenant on the ground of sub-letting.
Landlords are sometimes also faced with problems wherein they lease out their apartment to one person, but subsequently find out that someone entirely different has occupied their house. The only option, apart from sending a notice to evict them, is to approach the courts for suitable recourse.
In such cases, landlords may approach the rent control courts if the building is seven years old and seek eviction of the tenant as well as the sub-tenant on the ground of sub-letting (provided the lease agreement does not confer the tenant with a right to sub-lease the entire premises or a portion of it.
Conditions of eviction
A landlord who seeks to evict his tenant shall apply to the Controller for a direction in that behalf. A tenant shall not be evicted except the following conditions
• The tenant has not paid or tendered the rent due by him in respect of the building, within fifteen days after the expiry of the time fixed in the agreement of tenancy with his landlord or in the absence of any such agreement, by the last day of the month next following that for which the rent is payable
• Default to pay or tender rent shall be construed as willful, if the default by the tenant in the payment or tender of rent continues after the issue of two months’ notice by the landlord claiming the rent
• The tenant has without the written consent of the landlord, transferred his right under the lease or sub-let the entire building or any portion thereof, when the lease does not confer on him any right to do so, or has used the building for a purpose other than that for which it was leased
• The tenant has committed or caused to be committed such acts of waste as are likely to impair materially the value or utility of the building
• The tenant has been convicted under any law for the time being in force of an offence of using the building or allowing the building to be used for immoral or illegal purposes.
• The tenant has been conducting in a manner that cause nuisance to the occupiers of other portions in the same building or of buildings in the neighbourhood
• In case it is residential building, if the landlord requires if for his own occupation or for the occupation of any member of his family and if he or any member of his family is not occupying a residential building of his own in the city, town or village concerned
Tenant’s perspective
Landlord not to interfere with amenities enjoyed by tenant
No landlord shall, without just or sufficient cause, cut off or withhold or cause to be cut off or withheld any of the amenities (inclusive of supply of water, electricity, passages, staircases, light, lavatories, lifts and conservancy or sanitary services. ) enjoyed by the tenant or were in existence during the previous tenancy. A tenant in occupation of a building may, if the landlord has contravened the provisions of this section, make an application to the Controller complaining of such contravention and seek an interim order, directing the landlord to restore the amenities immediate. Such interim order may be passed without giving notice to the landlord.
If the amenities are not restored within seven days from the date of the interim order, the Controller may permit the tenant to restore the amenities at his own cost and recover the cost of the expenses incurred by the tenant in respect of restoration of such amenities from the rent payable to the landlord in such monthly installments as may be specified by the Controller.
Protection against eviction
Primary amongst the tenant’s rights is the right to protection against unreasonable eviction. The Tamil Nadu Buildings (Lease and Rent Control) Act of 1960 sets out certain specified grounds on which and which alone a landlord can evict his or her tenant. The tenant has a right to protection if a landlord seeks to remove him from the tenanted premises for any reason, apart from the limited reasons, set out exhaustively in this statute.
If a landlord or landlady seeks to remove a tenant by force from the premises, then, he will always be entitled to go to the civil court and seek from the court, an order of injunction, to prevent the landlord from removing him from those premises, excepting by following the provisions of the Tamil Nadu Buildings (Lease and Rent Control) Act.
However, landlords are not always so brash in their attempts to remove their tenants. At times, they are more subtle. For instance, a landlord is entitled to evict a tenant who fails to pay the rent on time for at least one month. Now, a clever landlord could adopt the ruse of evading the receipt of rent somehow or the other for one month, and then, suing the tenant for eviction, alleging failure to pay rent.
This is governed by Section 8 of the said statute.
Section 8 directs the tenant to adopt the following steps in cases, where the landlord fails to receive the rent.
1. Once the landlord refuses to receive the rent, the tenant must first issue a notice in writing to the landlord, requiring the landlord to specify within 10 days from the date of receipt of that notice by him, a bank into which the tenant can directly deposit the rent to the credit of the landlord. This notice must be clear, setting out the fact of non-receipt of the rent, and it must indicate the option that the tenant is exercising.
Sometimes, the landlord may not respond at all. Then, we move to the second step:
2. The tenant must then send the rent to the landlord by Money Order. Retain the Money Order coupons for future reference, in case the need arises.
The landlord may accept the money order in which case, there is no further problem, and future rents can thereafter be remitted by money order. Please note that the law permits the tenant to deduct the money order commission from the amounts so remitted.
Sometimes, the landlord may refuse the money order. Then, we move to the third and final step:
3. The tenant must file a petition before the court and obtain the court’s orders for depositing further rents into the court.
All of these must be done duly and punctually. Any indifference shown by the tenant in following these steps will weigh very heavily against him or her, should the landlord subsequently file a petition for eviction of the tenant on the ground of non-payment of rent.
Another way in which landlords seek to evict their tenants is to cut off their water or electricity supply unreasonably. In such cases, the tenant is entitled to approach the court for an order for restoration of these amenities and the landlord is expected to comply with the court orders, once the court grants such an order for restoration.
Can an evicted tenant be put back in possession?
Where a landlord who has obtained possession of a building does not himself occupy it within one month of the date of obtaining possession or having so occupied it, vacates it without reasonable cause within six months of such date, the tenant who has been evicted may apply to the Controller within one month for an order directing that he shall be restored to possession of the building and the Controller shall make an order accordingly.
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