Rental Agreement

Know what are all the Legal Rights of a Tenant

calendar15 Apr, 2023
timeReading Time: 7 Minutes
Tenants

In India, rent control laws are one of the most significant legislative frameworks to protect the rights of tenants. However, landlords often challenge these laws, creating a complex legal framework in favour of landlords’ interests. Therefore, tenants need to understand their legal rights to avoid potential disputes that may arise between them and their landlords. This essay outlines the legal rights a tenant has under Indian law regarding tenancy agreements.

1. Legal Rights of a Tenant

Being a tenant in India has never been easy. Many times, tenants are ill-treated by landlords, and their rights as tenants are often neglected. India has established various laws and regulations that have been created to protect tenants against such unfair treatment. Thus, the legal rights of a tenant in India are well-established and protected by a vast body of laws and precedents.

1.1) Security of Tenure

The security of tenure implies that a tenant has the right to remain in the property and renew the lease agreement. In India, the Rent Control Act provides tenants with security of tenure, which applies until the end of the lease agreement. Additionally, the Act prevents landlords from evicting tenants without a proper reason or following due procedure. The landlord must serve a notice of eviction to the tenant and provide valid reasons that the tenant can challenge in court if necessary.

1.2) Entitlement to Fair Treatment

A tenant has a legal right to receive fair treatment from the landlord or the letting agent. This legal right includes the right to live on a property that complies with the required standards of living, such as access to basic facilities like water, electricity, sanitation, and safety standards. A landlord who fails to provide such standards of living breaches the tenancy agreement, and the tenant can take legal action against the landlord.

1.3) Deposits and Rent

A tenant has the right to set up a tenancy deposit, which the landlord uses to cover damages or unpaid rent. The landlord must provide the tenant with a proper receipt confirming the amount paid, and this deposit must remain separate from the landlord’s account. Also, rent is a legal obligation that the tenant must pay promptly. The landlord cannot increase the rent without sufficient notice or agreement from the tenant. Similarly, when a tenant wants to withdraw from the tenancy agreement before the end of the lease term, the tenant must give sufficient notice to the landlord while complying with the agreed-upon termination clauses.

1.4) Repairs and Maintenance

Tenants have the legal right to expect the landlord to keep the property in good repair and safe condition throughout the tenancy. Therefore, the landlord must repair and maintain the property to ensure it complies with the required standards at all times. Tenants should report any issues that require repair or maintenance to the landlord in writing. In the event of a dispute, the tenant can take legal action against the landlord for failure to provide these repairs and maintenance services.

1.5) Termination of Tenancy

The termination of a tenancy agreement is a complicated process that requires the following legal procedures. Firstly, the tenant must give the landlord sufficient notice, in writing, confirming their intention to terminate the tenancy agreement. Secondly, the tenant must ensure the property is in good condition, meeting the landlord’s expectations in terms of cleanliness and repair. Thirdly, the tenant must complete any outstanding rent or bill payments before they vacate the property. The landlord also must inspect the property before returning the tenant’s deposit.

1.6) Right to Fair Rent

One of the primary rights of a tenant is the right to fair rent, which is defined as the reasonable rent payable for the use and occupation of any premises. The determination of fair rent is a crucial aspect of tenancy law, and the Indian courts have pronounced several landmark judgments in this regard.

1.6.1) Ramesh Chandra Kaushik v. State of Uttar Pradesh

In the case of Ramesh Chandra Kaushik v. State of Uttar Pradesh, the Supreme Court held that the fixation of rent must be based on a fair and reasonable assessment of the market value of the premises, taking into consideration various factors such as location, size, amenities, and prevailing rates. Similarly, in the case of M.C. Chockalingam v. V. Manickavasagam, the Madras High Court observed that the landlord has no absolute right to fix the rent, irrespective of market conditions or considerations of fairness and reasonableness.

1.7) Right to Maintenance and Repairs

A tenant has a legal right to demand that the landlord maintains the premises in a habitable condition and undertakes any necessary repairs. This right is essential to ensure that the tenant is not exposed to any health or safety hazards and can enjoy the premises without any inconvenience.

1.7.1) Santosh Kumar v. Kuldip Singh

In the case of Santosh Kumar v. Kuldip Singh, the Punjab and Haryana High Court held that it was the duty of the landlord to ensure that the premises were fit for human habitation and complied with all statutory provisions. The court further ruled that the landlord must carry out any repairs or maintenance promptly upon receiving any complaints from the tenant.

1.8) Right to Peaceful Possession

The right to peaceful possession implies that the tenant is entitled to occupy and enjoy the premises without any interference or disturbance from the landlord. This right is protected by law, and any breach of this right may result in legal remedies such as eviction or damages.

1.8.1) S.L. Srinivasa Jute Twine Mills v. Union of India

In the case of S.L. Srinivasa Jute Twine Mills v. Union of India, the Supreme Court held that the landlord could not interfere with the peaceful possession of the tenant and that any attempt to force the tenant to vacate the premises without following the due process of law would be illegal and invalid.

1.9) Right to Default Procedure

In the event of default in payment of rent, a tenant is entitled to a fair and reasonable procedure for recovery of arrears or eviction.

1.9.1) Mohan Lal v. Vidya Devi

The courts have interpreted this right in various judgments, including the case of Mohan Lal v. Vidya Devi, where the Supreme Court held that the landlord must give the tenant adequate notice of the default and a reasonable opportunity to pay the arrears before initiating any legal proceedings for eviction.

1.9.2) Salamat Ali v. Mohammad Ishaque

Similarly, in the case of Salamat Ali v. Mohammad Ishaque, the Delhi High Court observed that the landlord could not unilaterally terminate the tenancy without following the due process of law and that any such attempt would constitute an infringement of the tenant’s right to natural justice.

2. Legal Provisions

Tenancy laws vary from state to state in India. However, some universal laws apply to all tenants, regardless of state. The Indian Contract Act of 1872[1], the Specific Relief Act, of 1963, the Transfer of Property Act of 1882, and the Rent Control Act of each state are some of the laws that safeguard the rights of tenants.

2.1) The Indian Contract Act of 1872

The Indian Contract Act, of 1872 protects tenants against arbitrary or unfair eviction without adequate notice. According to Section 106 of the Act, a lease agreement can only be terminated after the expiry of the notice issued to the tenant or the landlord. The law also provides that certain essential parts of the tenancy agreement should be in writing to guarantee the rights of the tenant.

2.2) The Transfer of Property Act, 1882

The Transfer of Property Act, of 1882, on the other hand, provides compensation for tenants against property owners who violate the rules of renting. For example, if a landlord fails to maintain a rented property, the tenant may demand a decrease in the rent amount. Additionally, the Act also provides guidelines for the sub-leasing of properties by tenants to a third party.

2.3) The Specific Relief Act, 1963

The Specific Relief Act of 1963 protects tenants against the unlawful possession of properties by their landlords. Section 6(1)(b) of the Act states that anyone who has been wrongfully dispossessed of immovable property can file a suit in the appropriate court to recover possession. This provision can be invoked even when the tenant has no other claims for compensation or damages.

2.4) The Rent Control Act

The Rent Control Act of each state in India regulates the rent charged by landlords to tenants. These Acts also protect tenants against arbitrary rent increases and provide mechanisms for tenants to file grievances with their landlords or the appropriate authority in situations where a landlord has failed to comply with the law.

3. Other Landmark Case Laws

The tenants in India are protected by various legal rights under different state and federal laws. These laws stipulate the rights of a tenant and provide mechanisms to prevent landlords from abusing their power or rights. The case laws provide useful insights and guidelines on how the law works and how tenants can use these rights to their advantage. The protection of tenants is a crucial factor in ensuring fairness in the Indian property market. Therefore, the continued enforcement of these laws is critical to protect the interests of the tenants.

3.1) Anil Kumar vs. Sunita Devi

In the case of Anil Kumar vs. Sunita Devi (2001), the Delhi High Court held that a legitimate lease agreement must be in writing. In this case, the landlords, without proper notice, attempted to evict the tenant from the rented house. The court found that there was no written agreement to terminate the tenancy and, therefore, dismissed the case.

3.2) Smt. Sapna Sharma vs. M/s Om Parkash Sharma and Others

In the case of Smt. Sapna Sharma vs. M/s Om Parkash Sharma and Others (2010), the Delhi High Court upheld the importance of the Specific Relief Act, 1963, in safeguarding the rights of tenants. The court found that the defendant had no right to impose his will as a landlord over the plaintiffs and, therefore, ordered the return of the possession of the property to the tenant.

3.3) Indra Kaur vs. The State of Punjab and Others

In the case of Indra Kaur vs. The State of Punjab and others (1999), the Supreme Court upheld the Transfer of Property Act, 1882 in ensuring that the rights of tenants are protected. In this case, the petitioner asserted that the charging of interest on arrears of rent at an excessive rate constituted an abuse of power by the landlord. The court ordered that the total amount due to be paid to be reduced to the amount prescribed by law.

3.4) Parmanand Gupta and others vs. Smt. Smt. Sumitradevi and others

In the case of Parmanand Gupta and others vs. Smt. Smt. Sumitradevi and others (2018), the High Court of Delhi upheld the necessity of the Rent Control Act in protecting the legal rights of tenants. In this case, the respondent landlord had increased the rent amount, contrary to the provisions of the Rent Control Act. The court prohibited the landlord from increasing the rent amount.

Conclusion

In conclusion, tenants have several legal rights under Indian law regarding tenancy agreements. These rights cover different aspects, including the security of tenure, fair treatment, deposits, rent, repairs, maintenance, and termination of the tenancy agreement. While these rights can protect tenants from potential disputes with landlords, tenants must also adhere to their legal obligations, such as timely rent payments, maintenance and care of the property, and proper termination of the lease agreement. Understanding these legal rights is essential for all tenants to ensure that they receive fair treatment and protection throughout the lease period.

Read our Article:Residential Lease House Agreement Format

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