LAWS RELATED TO RENTING PROPERTY IN INDIA

Many people still don’t have an idea about how to rent the property and what amendments have been made, its benefits, and its importance in this particular situation. What are the legislations that have been enacted in order to solve the dispute between tenant-landlord through filing civil litigation in case of the breach or for registration. Renting a property has been used as a weapon by the government for their welfare.
Adam Smith defines the renting of property as “The rent of land or property, therefore, considered as the price paid for the use of the land, is naturally a monopoly price. It is not at all proportioned to what the landlord may have laid out upon the improvement of the land, or to what he can afford to take; but to what the farmer can afford to give.”
STATUTORY DEFINITION OF RENT :
According to the Supreme Court in the case of Commissioner Of Income Tax vs M/S.Singapore Airlines Ltd on 13 July 2012, the term as mentioned in Section 194 “rent” means any payment, by whatever name called, under any lease, sub-lease, tenancy, or any other agreement or arrangement for the use of any land or any building (including factory building), together with furniture, fittings and the land appurtenant thereto, whether or not such building is owned by the payee;
It also includes the right to take action or continue to take action in relation to his own land. The right to property is not a fundamental right but it’s a legal right or constitutional right. In a more recent case of Bajranga v. State of Madhya Pradesh (2021) “right to property is still a constitutional right under Article 300A of the Constitution,” the Supreme Court has ruled in a case where the government took ownership of surplus land even though there was none. The deprivation of a right can only be done in conformity with the legal procedure. Each state has its laws relating to its rental property and agreements. For instance, the Maharashtra Rent Control Act, of 1999, the Delhi Rent Control Act in the year 1958, the Tamil Nadu Buildings lease, and the Rent Control Act, of 1960. These Acts are enacted primarily to solve the disputes between two parties involved in the rental agreement.
ESSENTIAL INGREDIENTS FOR RENTING PROPERTY: RENTAL AGREEMENT
1. The rental agreement is a ‘Legal Form’ which has to be signed and dated by the tenant and landlord. It refers to the relationship between the landlord and the tenant.
2. Any changes regardless of the type of rectification must also be written.
3. The agreement must be stamped and registered.
4. Without a valid rental agreement, the rights and duties of the landlord and the tenant cannot be enforced or protected by law.
5. Both parties must have access to the document once it is signed.
6. The landlord must give the tenant a duplicate copy of the rental agreement, failing which the tenant is not obligated to pay rent until the tenant receives a copy of the rental agreement.
Bhawani Shankar v. Nand Lal, 2021 SCC OnLine Del 4284, 7-09-2021, Court examined that the essential ingredients which a landlord is required to show for the purpose of getting an eviction order for bona fide needs are:
* petitioner is the owner/landlady of the suit premises are required bona fide by the landlord for himself/herself and any of his/her family members dependent upon him/her.
* landlord/landlady or such other family members have no other reasonable suitable accommodation.
LAWS RELATING TO RENTING PROPERTY:
RENT CONTROL ACT, 1947:
This act was formed in the year, in order to protect the tenant from exploitation by landlords and controlling of rent charges. It also provides rights to the tenants and landlords as well. They faced serious situations like languishing investment in rental housing, withdrawing existing housing stock from the rental market, and stagnating municipal property tax revenue irrespective of inflation. In 1992, the central government proposed a modern rent control act legislation which was circulated to all states, aim is to enact the rent control act in all the states however, the New Delhi Rental control act has legislated but failed due to certain reasons: due to resistance from traders who are sitting tenants. Only a few states have legislated: The Maharashtra Rent Control Act, Delhi Rent Control Act, Tamil Nadu Rent Control Act, and Karnataka Rent Control Act have provisions for solutions to solve disputes among landlords and tenants.

MODEL TENANCY ACT, 2020:
The Union Cabinet approved the Draft Model Tenancy Act, 2020 (“MTA”) on 2nd June 2021. The MTA is the government’s efforts to enable the institutionalization of rental housing by steadily shifting it toward becoming a formal market. The MTA’s objective is to tackle the loopholes that presently exist in the rental housing sector and make renting more beneficial by increasing transparency and accountability and balancing the welfare of the landlord as well as the tenant in a prudent way. It has been circulated to all the states and union territories to adopt them.
TRANSFER OF PROPERTY ACT, 1882:
Lease or rent under TOPA, 1882 has been mentioned under section 105 to 117. Illustration: A, landlord, and B, tenant. A can only transfer his possession to B. As per section 105, rent is defined as one who transfers the property(lessor) to another person and accepts it(lessee) and the price is called premium.
Essential of lease:
i) right to enjoy the property
ii) acceptance
iii) consideration
iv) ownership and possession
Munnar Lavten Yadav v. Ashok Dalvi (2021)
According to the fact of the case, the petitioner was the landlord, while the respondent was a monthly tenant. The respondent owed rent and ignored payment in spite of repeated reminders. The petitioner gave notice of eviction under Section 106 of the Transfer of Property of 1882; thus, the tenancy was canceled. Ignoring the fact, the respondent failed to pay the arrears and did not vacate the land. The Bombay High Court bench held that the respondent must hand over unoccupied land within two months of the date of the judgment.

MAHARASHTRA RENTAL CONTROL ACT, 1999:
The first rent law was first passed in 1915 during the British period. Later, in 1999 it was substituted as the Maharashtra control act, 1999 by the legislative assembly and legislative council and came into effect in 2000.
As per S.30 and 30(2) of the MRCA, landlords can’t utilize their residential properties for commercial purposes. The Landlord also can’t permit the tenants to do so. For any such breach, the landlord may be punished with imprisonment for a term of up to 6 months or a fine of up to Rs.10,000/-.
TAMILNADU RENT CONTROL ACT:
The Tamil Nadu Rent Control Act, 1960 aims to control the tenancy of buildings as per the terms and conditions of the tenancy agreement executed by the landlords and additionally the tenants and also to safeguard the interest of the landlords and therefore the tenants just in case of disputes. As per the provisions of this law, all residency agreements ought to be written agreements and shall be mandatorily registered with the Rent Authority under the Registration act, 1908. Since most of the transactions are done through the registration portal with the minimum interface of the Rent Authority. The tenancy registration portal eases the method of registration of the tenancy agreement with several conveniences to the overall public.
CONCLUSION:
The rent control act provides for the full notion of how to solve disputes between the tenant and the landlord by making an agreement. Certain rights have been discussed under this act and many states also amended the act as per the new legislation, 2020. The rent control act not only examines the rights and duties of the landlord and tenants but also clarifies what needs to be done to get registered, essential requirements, jurisdiction, and penalties. Hence, through this article, we can analyze and understand the concept of how important it is to get a rent agreement and get registered under the registration act, of 1908 in order to prohibit the dispute between the parties.

REFERENCES:

https://www.scconline.com/blog/post/2021/09/07/landlord/
https://www.marxists.org/archive/marx/works/1844/manuscripts/rent.htm
https://blog.ipleaders.in/right-property-constitutional-right/
https://indianground.com/rentals/rental-laws-in-india.aspx
https://www.latestlaws.com/articles/all-about-lease-and-gift-under-transfer-of-property-act-1882-by-ayushimodi#:~:text=Lessor%2C%20lessee%2C%20premium%2C%20and,is%20rendered%20is%20called%20rent.
https://blog.ipleaders.in/section-106-of-transfer-of-property-act-1882/
https://www.tenancy.tn.gov.in/
https://lj.maharashtra.gov.in/Site/Upload/Acts/Mah.Act%2018%20%20of%202000%20Rent%20Control%20Act,1999-%20Maharashtra.pdf

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