In a three-decade-long dispute between landlord and tenant, the Supreme Court (SC) has decided in favour of the landlord. Also, the court has penalised the tenant. While we often hear and advocate to protect a tenant’s rights, this legal case highlights that the rights of landlords are equally important. discusses the key rights of a landlord in detail.
What is the recent Supreme Court verdict on a three-decade-long case?
The legal dispute revolves around a shop at Alipore in Kolkata. The landlord leased a shop for 21 years. Once the lease ended in 1988, the tenant did not vacate the commercial property. As a result, the landlord filed a case in a civil court in 1993. Although the decision of this case came in support of the landlord in 2005, the tenant found ways to trouble the property owner further. In 2009, the tenant’s nephew claiming to be a business partner at the shop, filed another case, which went on for 12 more years.
Observing the entire timeline, the SC has stated that the ‘tenant’ party tried to take undue advantage of the judicial system and hampered the landlord’s rights. Consequently, the apex court has ordered the tenant to hand over the property to the owner within 15 days of the court order. Also, the tenant will have to pay the rent as per the market rate since March 2010 in the following three months. Additionally, the tenant will have to pay a penalty of Rs 1 lakh for unnecessarily troubling the court and landlord.
Who is the landlord?
A landlord refers to the owner of a property, such as a house, commercial property or land, that is rented or leased for a specified period to an individual or entity, called a tenant, lessee or renter, in exchange for a specified amount as rent.
Right of eviction
As per the Rent Control Act that applies to tenants of over 12 months, property owners may encounter problems in evicting tenants. The Model Tenancy Act 2020 focuses on tackling challenges, such as untimely eviction, mutual fixation and revision of rent and repossession issues.
The grounds for eviction include subletting a part of the property without the landlord’s permission and any breach of the rental agreement.
A landlord is entitled to include a clause in the rent agreement for a progressive increment in the rent when the tenant refuses to vacate the house. The possession of the rented premises for occupation can be a ground for eviction.
Right to temporary possession of the property
A landlord can evict a tenant for repair and maintenance works if such works cannot be performed without the eviction of the tenant. The premises can be rented to the tenant after the repair works are over.
Right to be advised of repairs
A property owner is responsible for the property’s upkeep. Tenants should inform the landlord about any minor or major repair works. They can carry out minor repairs themselves. However, it is necessary to obtain prior permissions and reimbursements for all major works from the landlord in writing. As per the Rent Control Act, the repair expenses should be shared by the landlord and the tenant.
Right to hike the rent
The law allows the landlord to have an upper hand when it comes to raising the rental amount. Owners of a property (residential or commercial) not only have the right to charge rent at prevailing market rates but also to increase it periodically.
The draft Model Tenancy Act has been instrumental in bringing a balance in this regard by including the rental market under the purview of the formal housing sector. The Act categorically defines important aspects in this regard such as inheritance, rent payable, period and obligations of the tenant as well as the landlord.
In general, rent in India increases at a rate of 10 percent per year. However, the rental values of some States are subject to State-specific laws. For example, In Delhi, the rent can only be increased according to Section 6 and 8A of the Delhi Rent Control Act.
The draft Model Tenancy Act 2020 aimed to resolve issues such as-
- Untimely eviction of tenants
- Mutual fixation and revision of rent
- Repossession issues
Some of the grounds on which the law allows a landlord to evict a tenant are-
- Subletting a part of the property without the landlord’s permission
- Default in rent payments
- Conducting illegal activities on the rented premises
- Breach of rental agreement in general
The landlord can also add a clause in the rent agreement for progressive increment in the rent when the tenant refuses to vacate the house. The possession of the premise for occupation is also a ground for eviction.