Delhi Rent Control Act: Key Provisions and Case Law

Posted on Jan 7, 2025 in Law & Jurisprudence

Slum Areas and Improvement Act, 1956

Section 14(2): Restrictions on Eviction Orders

No order can be made if payment is made under Section 15(1).

  1. Notwithstanding anything in any other law for the time being in force, no person shall, without written permission from the competent authority:
    • (a) Institute, after the commencement of the Act, any suit or proceeding for obtaining any decree or order for the eviction of a tenant from any building or land in a slum area; or
    • (b) Where any decree or order is obtained in any suit or proceeding instituted before such commencement for the eviction of a tenant from any building or land in such area, execute such decree or order.
  2. To obtain permission under subsection (1), an application in writing must be made in the prescribed manner.
  3. The competent authority, after giving the parties an opportunity to be heard, shall make a summary inquiry into the circumstances of the case.
  4. Factors to be considered during the inquiry:
    1. Alternative accommodation
    2. Interests of improvement
    3. Other prescribed factors

Relevant Case Law

  • Jyoti Pershad v. Administrator: Constitutional validity challenged under Article 14.
  • C.R. Abrol v. Administrator: Section 19 is available only to tenants; determination of the relationship between landlord and tenant.
  • Lal Chand v. Radha Krishna: Definition of “tenant” is not extended from the Delhi Rent Control Act (DRC).
  • Punni Ram v. Chiranji Lal Gupta: Whether Section 19(4) is to be read cumulatively or alternatively.

Lease under the Transfer of Property Act, 1882

Section 105: Definition of Lease

A lease of immovable property is a transfer of a right to enjoy such property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service, or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee, who accepts the transfer on such terms.

Indian Evidence Act, 1872 – Section 52

Grants to another, or to a definite number of persons, the right to do or continue to do, in or upon immovable property, something which would, in the absence of such right, be unlawful, and such right does not amount to an easement or an interest in the property.

Relevant Case Law

  • Associated Hotels v. R.N. Kapoor: Barber shop in a hotel; the real test for establishing a lease.
  • M.N. Clubwala v. Fida Hussain: A mere agreement is not enough to establish a lease.

Heritability and Statutory Tenancy

Section 2(i): Definition of Tenant

“Tenant” means any person by whom or on whose account or behalf the rent of any premises is, or, but for a special contract, would be, payable, and includes:

  1. A sub-tenant;
  2. Any person continuing in possession after the termination of his tenancy; and
  3. In the event of the death of the person continuing in possession, their family, including spouse, son, and daughter-in-law.

Relevant Case Law

  • Mohan Lal v. Shri Krishna: The right to tenancy is not absolute and is subject to conditions:
    1. Financially dependent
    2. Includes heirs
    3. Must be living with the deceased at the time of death
    4. Limited to the lifetime of the inheriting family member
  • Damadi Lal v. Parash Ram: Whether heirs inherit a personal right; follows conditions.
  • Jagdish Chandra v. Kishan: (Rajasthan) Tenancy is only a personal right.
  • Gian Devi Anand v. Jeevan Kumar: Application to commercial premises.
  • Baldev Singh v. R.C. Bhasin: Reference to Canadian law.

Grounds for Eviction under Section 14(1)

Eviction can be sought on the following grounds:

  • (a) Non-payment of rent
  • (b) Subletting
  • (c) Impermissible use
  • (d) Non-occupation
  • (e) Bona fide requirement by the landlord
  • (f) Dilapidation of the premises
  • (g) Building and reconstruction
  • (k) Violation of lease conditions

Relevant Case Law

  • (a) Jagganath v. Ram Krishan Das: Order for non-payment; relief under Section 15(1) can be granted twice.
  • (e) Satyawati Sharma v. UOI: Constitutional validity of clause (e) challenged under Article 14; Gian Devi v. Jeevan Kumar considered.

Procedure under Section 25(B) for Eviction under Section 14(1)(e)

  1. Shall be dealt with in accordance with the procedure specified.
  2. Issue summons in the Third Schedule.
  3. Service by post is deemed service.
  4. The tenant can contest via an affidavit.
  5. The landlord shall be granted leave to contest if the affidavit discloses facts that may disentitle the landlord from possession.
  6. Early hearing if contested.
  7. Summary inquiry.
  8. No appeal for recovery of possession.
  9. Power of review.

Relevant Case Law

  • Precision Steel & Eng. Works v. Prem Deva: “Controller shall give” interpreted.
  • Satyawati Sharma: Application to non-residential premises.
  • V.S. Talwar v. Prem Chandra Sharma: Application to a personal office.

Specific Lease Conditions

Section 14(1)(k)

Deals with using the property in a manner contrary to any condition imposed on the landlord by the Government, DDA, or DMC in the lease.

Section 14(1)(c)

Using the premises for a purpose other than that for which they were let:

  1. If let out on or after June 9, 1962; or
  2. If let out before that date, without obtaining the landlord’s consent in writing.

Relevant Case Law

  • S.P. Arora v. Ajit Singh: The right under clause (k) is personal and can be waived by the landlord.
  • Faqir Chand v. Shri Rattan Bhanot: Not entitled to possession because he himself gave it; notice for condition imposed under clause (k) – if complied with, no forfeiture; clause (c) is general, while clause (k) is specific.

Section 21: Limited Period Tenancy

Does not require the whole or any part of the premises to be let out for a particular period. After obtaining the permission of the Controller, the premises can be let out for the period specified in writing. Notwithstanding anything contained in Section 14 or any other law, the landlord may be placed in vacant possession.

Relevant Case Law

  • Inder Mohan Lal v. Ramesh Khanna: Section 21 overrides Section 14; gives a bona fide statement.
  • Pukhraj Jain v. Padma Kashyap: After expiry, no right exists except in cases of fraud.
  • Shrisht Dhawan v. M/S Shaw Brothers: Not allowed unless conditions are satisfied.

Standard Rent

Section 2(k)

“Standard rent,” in relation to any premises, means the standard rent referred to in Section 6 or, where the standard rent has been increased under Section 7, such increased rent.

Relevant Case Law

  • Balbir Singh v. MCD: Standard rent is the upper limit of rent; hypothetical tenancy.
  • Raghunandan Saran Ashok Saran v. UOI: Unconstitutionality of Sections 4, 6, and 9 challenged as arbitrary and violative of Articles 19(1)(g), 14, and 21.