UNIT- IV: DELHI RENT CONTROL ACT

A. INTRODUCTION TO AND DELHI CONTROL LEGISLATION IN DELHI: 1958

AND 1996

1958 ACT

The main purpose of introducing the Rent Control Act, 1958 in India is to protect the rights
of tenants, give them security and restricts the landlords in their ability to evict their tenants.
This Act has been designed for each and every state in India separately. Therefore, here we
are discussing some significant points of the Delhi Control Act, 1958.

The Delhi Rent Control Bill was been passed by both the Houses of Parliament and received
the assent of the President on 31st December, 1958. It came into force on 9th February, 1959
as The Delhi Rent Control Act, 1958. It extends to the areas included within the limits of the
New Delhi Municipal Committee and the Delhi Cantonment Board and to such urban areas
within the limits of the Municipal Corporation of Delhi. The courts are under a legal
compulsion to harmoniously read the provisions of the Act so as to balance the rights of the
landlord and the obligations of the tenant and landlord toward each other.

Rent Control Acts (RCAs), including The Delhi Rent Control Act 1958, are meant to fulfill
two main purposes:

 protect the tenant from having to pay more than a standard rent.
 to protect the tenant from arbitrary eviction.

If the amount of rent albeit a property is less than Rs. 3,500/- then the provisions of the Delhi
Rent Control Act, 1958 will apply; however, if the amount of rent albeit a property is more
than Rs. 3,500/- then, the provisions of the Transfer of Property Act, 1882 will apply. If the
amount of rent charged is Rs. 3,500/- exact, then the provisions of the Delhi Rent Control
Act, 1958 will apply.

The provisions of this act shall apply to all the hotels and lodges covering in the jurisdiction
and the controller shall have all the rights to fix the fair rate to be charged for any
boarding/lodging.
1996 ACT

The basic objective of the Rent Control Act is to protect the tenant from exorbitant rent,
arbitrary increase in rent and to ensure the security of the tenant. In India, states enacted their
own Rent Control Act by 1972. The rent control act is applicable to most of the residential
and non-residential premises in all urban areas of the states. In 1992, the Central Government
proposed a Rent Control Legislation to all the states. The model act was a proposal for a
modification to the earlier laws and which prescribed a level of rent beyond rent control
cannot be applied. The New Delhi Rent Control Act in 1997 was passed but later the model
act failed. Now each and every state in India provides fixation of standard rent. The main
provisions of the Rent Control Act are as follows:

1. Control of Vacant Building i.e. letting and leasing to assist the tenant.

2. Fixation of fair and standardised rent.

3. Protection from indiscriminate eviction to tenants.

4. Obligations and duties of landlords i.e. maintenance of the rented property.

5. Rights of Landlords on default payment or misuse of property or recovery of the

property for specific reasons.

B. DEFINITIONS, GROUNDS AND EVICTIONS

SECTION- 2. Definitions.

(e) “landlord” means a person who, for the time being is receiving, or is entitled to receive,
the rent of any premises, whether on his own account or on account of or on behalf of, or for
the benefit of, any other person or as a trustee, guardian or receiver for any other person or
who would so receive the rent or be entitled to receive the rent, if the premises were let to a
tenant;

(f) “lawful increase” means an increase in rent permitted under the provisions of this Act;

(l) “Rent Authority” means an authority appointed under sub-section (1) of section 43 and

includes an additional Rent Authority appointed under sub-section (2) of that section;
(m) “standard rent”, in relation to any premises, means the rent calculated under section 7;

(n) “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-

(i) a sub-tenant;

(ii) any person continuing in possession after the termination of his tenancy,

but does not include

(i) any person against whom an order or decree for eviction has been made, except where

such decree or order for eviction is liable to be re-opened under the proviso to section 3 of the

Delhi Rent Control (Amendment) Act, 1976 (18 of 1976);

(ii) any person to whom a licence as defined in section 52 of the Indian Easements Act, 1882

(5 of 1882) has been granted;

(o) “Tribunal” means the Delhi Rent Tribunal established under section 46;

Exemption 

1. Earlier the Rent Control would be applicable to large urban areas with a population of
3lakh or above. But due to the Bill, the population limit is indicative and state
governments can cover areas as per the local needs which can have a population even
less than 1 lakh.

2. Construction on a vacant plot of land will be considered as construction and 75 per

cent of the construction will be considered a renovation. Standard rent would be paid
on the fifteenth year for the new construction for the fifteen years by the tenant to the
landlord. It would be considered as eviction if the Tenant refuses to pay this rent. 

3. Exemption for premises for a period of 15 years or no tenancy for 7 years or more.

4. All tenancies exempt on lease extend to 20 years.

5. Exemption to both the residential and non-residential premises which are carrying
more than the specified rental value ranging between Rs 1500 to Rs 3500.
 Fixation of Standard of Rent 

1. The State Government will decide the standard rate which is to be fixed to 10% or
such percentage return on the basis of total components i.e market value in the year,
construction cost, renovation, and major repairs. 

2. The standard percentage increase is allowed for a given year which may vary state to
state. In Delhi, rates 1970 onwards was 8%.

3. Standard rates add maintenance and amenities charges.

4. The new standard rents are applicable for all the tenancies and the standard rent is
revised every 3 years by the criteria given by the state governments.

 Obligations of Landlords and Tenants

1. Compulsory registration of tenancy with the Authority designated by the State

Government for Landlords.

2. Compulsory to give rent receipt to tenants by landlords.

3. Landlords are responsible for the day to day repairs.

4. Tenants have to restore the property as good as it was at the time of entry.

5. Heavily Penalise landlords and tenants on violation of the obligations.

 Eviction

1. Tenant’s non-payment of the rent to the landlord for more than 3 months.

2. Unauthorized use or misuse of the premises.

3. After the notice to quit the failure of the tenant to deliver possession.

4. The bonafide requirement of self-use of residential or non-residential by the landlord.

5. The allotted house period for a tenant to be counted from the day it is ready for
occupation.

6. Any damage made or any alteration by Tenant without permission of the owner.

7. In case of major repairs, reconstruction or alterations temporary vacation is provided.

  Maintenance Provisions

1. Including maintenance cost payable by Tenant for better maintenance and repair of
houses.

2. Revision of Rent can be done by the landlord on the special repair of the property.

3. On the renovation of the property on a special vacation provided the standard rent will
also increase depending on the cost of renovation.

 Other Provisions

1. Making of the Rent Control Act as a permanent Act.

2. Limited period of tenancy up to 5years and providing physical eviction of tenant after
the expiry of the period without any procedure.

3. An heir living with a tenant and they were dependent on the tenant. As the Tenant’s
death, the heir is permitted to vacate the property for 1 year.

4. Contractual Services such as Canteens, sanitation, etc. doesn’t cover under the law. 

 Streamlining Judicial Procedure under Law

1. By a Constitutional Amendment to establish Rent Tribunal and include Tenancy

matters under Article 323 B of the Constitution of India.

2. Simplifying the procedure of litigation by providing petition and appeal to the

Appellate Tribunal prescribed form.

3. Appellate Tribunal should have all the powers of the High Court and it should be
composed of a Chairman and such members of State Government.

4. The State Government has the power to extend the Jurisdiction of the two-tier system
to cover disputes and tenancy.

Jurisdiction of the Act

Section 50 bars the Jurisdiction of the Civil Courts of the Delhi Rent Control Act, 1958. Its
jurisdiction extends within the limits of New Delhi Municipal Committee, Municipal
Corporation of Delhi and Delhi Cantonment Board as specified in the First Schedule and the
Central Government holds the power to extend the limits. The proceedings of Delhi Rent
Control Act, 1958 take place before the Rent Controller. 

Under Section 3 of the Act, the Act cannot be applied to any belonging of the Government or
to any tenancy or other relationship granted by the government. 

Under Section 5 of the Act, the Act cannot claim or receive unlawful charges notwithstanding
agreement.

C. DISPUTE SETTLEMENT MECHANISMS

Controller

Controller in the Delhi Rent Control Act,1958 is defined as “Controller appointed under sub-
section (1)  of section 35 and includes an additional Controller appointed under sub-section
(2) of that section.” in a legal and technical language, however in the layman language they
can be simply defined as officers who are in charge of controlling the rents of the properties
as and when the need arises. They have their powers same as are vested in the Civil Court,
under Code of Civil Procedure,1908 while trying a suit. 

Appointment and Powers

Qualifications to be appointed as a Controller and functions and powers vested in him has

been defined under Chapter VI of the Act. 

Applications to the Controller

So far it is clear that the Controller is in the charge of regulating the rules for the rent of
properties of Delhi. But how to approach a Controller? Whenever there is a rough patch
between the landowners and tenants. 

Controller there acts as a mediator, who sought to bring their deal to a conclusion. Either the
landlord or the tenant can approach the Controller through an application made to him in the
name of his office. Application can be made to him/her for different purposes. The basic
motive behind enacting this act and appointment of the Controller was to protect the interest
of the tenants so they don’t have to pay more than the reasonable and stipulated rent, and the
arbitrary evictions by the landlords. Standard and reasonable rent here means, the rent which
is affordable to the economically weaker sections and is being provided in the Act itself. 
Applications under Sections 9, 13, 14 or 19(1) 

(1) Every application to the Controller under Section 9, Section 13, Section 14 or sub-section
(1) of Section 19 shall be in Form A. 

(2) An application under section 13 shall also give particulars of the sum or consideration
paid, the circumstances under which such payment was made and the provisions of the Act,
or of the Delhi-Ajmer Rent Control Act, 1952, which has been contravened. 

(3) An application for permission to re-let premises under sub-section (1) of section 19 shall
also state the ground on which the premises are sought to be re-let in whole or in part. 

Section 9 guarantees, that the controller shall, through an application made to him, fix the
standard rent keeping in with the provisions of Section 6 and 7 of the Act. 

Section 13 guarantees and protects the rights of the tenants, if they had paid any sum to the
landlord in violation of the rules of this Act, the Controller shall on receiving an application
may order the landlord to refund the sum to the tenant. 

Section 14 talks in length about the protection of tenants against eviction and specify certain
grounds on which landlord can evict their tenants and not violating their rights. 

Section 19(1) elaborates about the recovery of possession of the property for the purposes of
occupation and re-entry, and the landowner shall not except with the permission of the
Controller re let the property within three years of having such possession; and Controller
may by her/his order let the tenant take possession of such premises. 

Landowners perspective

Above mentioned sections deals in depth with the application to the controller. However
these section give immense power to the tenants in regard of possession of the property.
Since it is an archaic Act, it favors the tenants, which when the Act was enacted gave power
to the economically weaker sections and gave them hope over the possession of their
properties. However with the change in the scenarios, the Act has been misused by the
tenants. Section 9 talks about the standard rent fixed by the Controller, however it is more
like of a controlled market where the rent is fixed, irrespective of the current market
situations.
Talking of the Controller, who has to be a judicial officer, it is not guaranteed that she/he may
be an expert in fixing the rent, or aware of the market situations which gave a huge setback to
this Act. Landlord does not get a chance to decide the rate of their property’s rent by
themselves and therefore by mere application to the Controller, there can be a fixation in the
rent. All the applications made to the Controller shall be in the Form A, which gives the
details of the rent, about the property, and under which section it has been sent to the office.
The act has been majorly in the tenant’ favor, however there are some sections and conditions
which give relief to the landlords as well, as it provide certain grounds on which possession
can be reclaimed, and protects them against the violations of the rules by the tenants. 

Under Section 19(1), through an application made to the Controller, re-possession of the

property on grounds of occupation is possible, however it also grants powers to the Controller
to decide that whether the tenant could acquire possession over the premises or not, which
again leaves no room for the landowners to decide about their property. By a mere
application tenant can possess the property. Controller here can be biased and there is no
prior inspection of the property before letting the property to the landowners. Eviction should
be ascertained and analysed, and therefore conclusion should be made that whether the
eviction is just and lawful or not. 

Tenants’ perspective 

Since this act is Tenant friendly, and since ages it has been criticized because of stagnancy, it
ignores the landlords’ concern over their properties. There has been considerable dip in the
investments by the landlords in the properties, because of the controlled markets by virtue
of interim and standard fixed rents. Initially it was enacted for the economically weaker
sections, but now it has been misused by many residents, and even after several amendments
it could not repair the financial damage done to the properties in the market dealings.
The benefit of such act for the tenants is that it sets the fixed rent and standard rents by the act
and protects them from the untimely or unreasonable evictions by the landlords. Also if the
landlord acquires the possession of the property, on application to the controller, they can
claim possession over the premises, if it is in the regulation of the rules provided under
the Act. Also if the Controller thinks fit, they are eligible for the compensation. In all the
ways this Act protects the interests of the tenants and ensures that they get a roof above their
head.
Application for Re-enter

An application by a tenant under sub-section (2) of section 19 or under sub-section (3) of

section 20 for putting him in possession of the premises or part thereof shall be made within
six months from the date on which the cause of action for re-entry arises and shall state the
grounds on which such possession in claimed. 

This provision provides that application shall be made under Section 19(2) and 20(3) within
six months from the date on which the cause of action for re-entry arises and shall also
specifies the grounds on which such possession is claimed. 

Section 19(2) provides that if the landowner lets the possession of the property to another
tenant other than the evicted tenant within three years from the date of obtaining such
possession, and such premises are not held by landowner, then controller, through an
application made by the evicted tenant, may order the landlord to give possession of the land
or compensate him in equals. 

Section 20(3) deals with that if landowner, after the tenant has delivered the possession, fails
to continue the repairs and work on the building, and provide occupation to the tenant, then
the controller shall order the landowner to give such occupation to the tenant, upon receiving
an application from such a tenant. 

Landlord perspective

The above sections are clearly not in favour of the landowners and curbs their liberty to
engage tenants and for that matter even workers required for the works and repairs on his
building. These sections are arbitrary and biased towards the landowners, since it gives
powers to the tenants and in a way this power may get misused, because there is no prior
investigation on the same. Mere application under the section prompts the Controller to take
an action before the landowner can be reasonably heard. Moreover it is a pressure on the
landowner regarding employing such tenants, and giving them possession specially after the
property has been repossessed. 

Also the question of delay is not reasonable as there may be genuine reasons behind it, and
having such tenants again should not be compulsory. 
However it can be ascertained that tenants may not get dispossessed unnecessarily and
unreasonably, and therefore special experts maybe employed for such investigations and
counselling maybe done for both the landowners. 

Tenants’ perspective 

Above sections clearly supports the plight of the tenants who are unreasonably displaced
from their properties and are untimely evicted. 

Section 20(3) not only maintains that they get compensated but also ensures that they are
given occupation of the building. However it is an undisputed fact, that there maybe misuse
of the act and therefore many tenants who are genuinely evicted and with mala fide intentions
get the advantage out of the situation. 

Application for Recovery of Possession under Section 21

An application for recovery of possession under section 21 by the landlord shall be made
within six months from the date of expiry of the  period of tenancy. 

This section deals with the recovery of possession in case of tenancies for limited period. In
this Section, if the landowner and tenant has a written agreement between them, about the
limited period of the tenancy, and on the expiration of such period, tenant does not vacate the
premises, then the Controller on behalf of the application by the landowner may place
the possession of such property to the landowner, and evicting such tenant and whosoever in
occupation of it. 

This section is in favor of the landowners and protect their interests against tenants with
malafide intentions. It is illegal and not reasonable to go beyond the written agreement, and
therefore both the landowners and tenants are obligated to adhere to such rules, and anyone
who violates it, must bear with the legal consequences. 

Form of other Application

An application not herein before specified in these rules shall, so far as may be made in
Form A and shall state the grounds on which it is made. 
This provision provides that the Applications made to the Controller shall be made in Form
A, which also states the grounds on which they are made and specially sections under which
these grounds fall. 

Manner in which Applications are to be made 

(l) Every application under the Act shall be signed and verified in the manner prescribed
under rules 14 and 15 of Order VI of the First Schedule to the Code of Civil Procedure,
1908, and shall be presented by the applicant or his recognised agent to the Controller. 

(2) Every such application shall be accompanied by a copy or sufficient number of copies

thereof for service on the respondent of respondents mentioned therein. 

Rule 14 of the CPC, 1908 talks about “Pleading to be signed” i.e. the pleading has to be
signed by the pleader, or in his absence any pleader who is authorised to do the same. 

Rule 15 of the CPC, 1908 specifies about “ Verification of Pleadings” which is to ensure that
pleader verifying the facts of the case is upto the \satisfaction of the Court, and verifies the
facts to be true by signing it duly. 

Appearance before the Controller 

A party may appear before the Controller either in person or by a recognised agent provided
that if the Controller so directs the party shall  appear in person. 

This ensures the legal identity of the party pleading, and if the Controller is not satisfied, he
may order the party to appear personally. 

[8A. Form of report of valuation by valuer – (1) The report of valuation by a valuer in
respect of the premises shall be in Form F. 

Fees – (2) The amount of fees to be paid to the valuer shall be such as may be decided by the
Rent Controller.] 

-Form F deals with the details and intricacies of the valuation of rent and about the property
to be valued.