Sn Aj dia m Gold JUDICIARY GOLD a JUDGE ae 300+ SELECTIONS IN LESS THAN 3 YEARSGold” MP Accommodation Control Act, 1961 1) Basic - 1. date- i) enactment: 25th December 1961 ii) commencement- 30th December 1961 2. Totalno- i) chapter-7 ii) sections 51 3. Purpose: i) An Act to regulate and control: i) Letting and rent of accommodations ii) Expedite trial of eviction cases based on "bona fide" requirements of certain categories of landlords iii) Generally regulate and control eviction of tenants, and related matters Area to be 2) Coverage: i) First instance - Areas specified in the first Schedule ii) Other areas - Dates as appointed by State Government (Section 1) 3) Definitions(section 2)- 1. Accommodation (Section 2(a))" - Any building or part, residential or non-residential, including land not used for agricultural purposes, gardens, grounds, garages, out-houses, fittings, and furniture provided by the landlord, 2. "Landlord (Section 2(b))""= A person receiving or entitled to receive rent, whether on their own account, on behalf of another, or asa trustee, guardian, or receiver; also includes anyone deriving title under a landlord. 3. "Tenant (Section 2(i))" - A person liable for rent, including sub-tenants and those in possession after tenancy termination, excluding those with an eviction order or decree 4) Other important terms i) Section ii) Definition 2(c) Lawful Increase 2a) Lease 2le) Member of Family 2th) Standard Rent 5) Act does not apply to (section 3) i) Accommodation which is the property of the Government; ii) Accommodation which is the property of a local authority used exclusively for non-residential purposes. ili) Accommodation which is owned by i) any educational, religious or charitable institution or ii) any nursing or maternity home and iii) the whole of the income derived from which is utilized for that institution or nursing home or maternity home.Gold 6) Chapter 2 provisions do not apply to constructions, whether completed before or after the Act's commencement, for a five-year period from the date the construction completion was notified to the relevant local authority (Section 4) 7) Rent in excess of standard rent not recoverable(section 5) “Tenant's obligation limited to standard rent, unless expressly agreed otherwise, in which case, contrary agreements are construed as standard rent agreements. 8) No person is allowed to claim an amount exceeding the standard rent for accommodations (Section 6) i) Regarding the grant, renewal, or continuance of tenancy or sub-tenancy, individuals cannot receive premium, pugree, or consideration exceeding the rent. Rent exceeding one month's advance is prohibited without the prior permission of the Rent Controlling Authority (RCA). ii) Tenants or sub-tenants are barred from claiming or receiving consideration for the relinquishment, transfer, or assignment of their tenancy, except in cases where the tenant finances construction with an agreement stipulating exclusive occupancy by the tenant or their family, subject condition that the amount cannot exceed 5 years rent and itis to be considered as advance rent, 9) Standard Rent (Section 7) 1. Under the repealed Act or prior to the commencement of the repealed Act-reasonable annual rent or fair rent has been fixed by a competent authority 2. Prior to Ist Jan 1948 i) accommodation let out- the reasonable annual rent or fair rent has not been so fixed, the rent of that accommodation as shown in the Municipal Assessment Register or as was realised on the 1st day of January, 1948, whichever is less. ii) If accommodation was not let out- the rent of that accommodation as shown in the Municipal Assessment Register or as could be realised on the 1st day of January, 1948, whichever is less. In category 2 the following additions will be made: (a) Accommodation used for residential/ educational purpose- 35% increase (b) Accommodation used for other purpose- 70% increase () Municipal tax not payable by tenant and tax increased since 1 Jan 1948- amount of such increased tax 3. Accommodations not falling within category 1 and 2 (a) If separately assessed — Amount of Municipal assessment + 15%. (b) Assessed in part ~ Proportionate amount + 15%. (c) Not assessed ~ (i) Rent agreed upon between the landlord and the tenant when such accommodation is first let out, and if it has not been so let out, to such amount for which it could be let out immediately after its construction was completed. OR 6 x % (Market value of land+ Cost of Construction). Whichever is less 10) Lawful increases (section 8) i) Before commencement, with or without tenant permission. ii) After commencement, with written permission from RCA or tenant. iii) Up to 10% of the annual standard rent is permissible for: (1) Expenditure on improvement, addition, or structural alteration (excluding decoration or tenantable repairs).iv) Recovery allowed for: (1) Charges for electricity, water consumed, or other local authority levies or taxes v) Notice of lawful increase: Must be given and becomes effective only 30 days after serving the notice (Section 9). 11) Rent Controlling Authority to fix standard rent (Section 10) a) Application to the Rent Controlling Authority (RCA) can be initiated by either the landlord or the tenant. b) RCA determines rent based on the standard rent per Section 7 or the specified increase under Section 8. ©) If Section 7 is not applicable, RCA sets rent considering the situation, locality, accommodation condition, and amenities, also factoring in standard rent for similar accommodations in the area (Section 9) 12) Restriction on Eviction Of Tenant (Section 12) Subsections Grounds for Eviction Exceptions Exception Sections a) if the tenant makes payment or deposit as required by Section 13 Non-payment of rent b) The above mentioned statement 12(1}(2) for 2 months will not be applicable if he again 1263) makes default in payment for 3 consecutive months. Unlawful sublet, 12(1)(b) assigned, or parted - Hl with possession Creation of nuisance 220)() or disclaimer of ttle : Non-use of accommodation 12(1Y(¢) continuously for 6 : 4 months a) Eviction suits under 12(1)(e) or ee 12(1)(f) are barred for one year Bonafide residential from the date the landlord 12(4)(e) acquires possession by transfer requirement b) The landlord is barred from et taking possession for two months. Upon eviction order under 12(1)(F) k petsieoe: in specified cities, the landlord pays rt ae double standard rent if the 1216) ccuircmnent accommodation was used for a business; otherwise, the standard rent amount is applicable. Eviction on the grounds of 12(1)(@) Carrying out repairs _ reconstruction under 12(1)(h) -12(7) requires court satisfaction that itait ary Gold Subsections Grounds for Eviction Exceptions Exception Sections won't radically alter the original purpose or is in the public interest, with proper plans, estimates, and available fund 12(0)(hy Building rebuilding d : purpose Tenant has suitable 12(1)(i) alternative : : accommodation Eviction under 12(1) (j) is Termination of prohibited if a dispute on the 12(2)) employment or tenant's employment status with 1218) service the landlord is pending before a competent authority. -Eviction under 12(1) (k) is withheld if the tenant, within the specified az(aytky Substantial damage to ime, repairs damage to the court's -12(9) the accommodation satisfaction or compensates the landlord as directed by the Court. Notice to quit given by 22D the tenant -Evietion under 12(1) (m) is prohibited if, within the specified Material alteration. time, the tenant restores the 22()(m) without permission accommodation to its original 2(20) condition or compensates the landlord asidirected by the Court. Open land required for 22Y(") construction 4 i eviction under 12(1)(0) is : precluded if, within the specified Possession acquired of time, the tenant vacates the 12(1)(0) part not included in : -12(1) aan portion not let and compensates the landlord as directed by the Court Tenant convicted for 12(1)(6) it . : illegal activities 13) A composite tenancy is a mixed-purpose arrangement, serving both residential and non-residential functions, clarified in Nilesh Nand Kumar Shah v. Sikandar Aziz Patel 2002. In Machla Bai v. Nanak Ram MPHC 2006, for composite tenancies, eviction orders can be based on either residential or non- residential bonafide requirements. 14) Denying the landlord's title to the accommodation constitutes a disclaimer of title and is a ground for eviction under 12(1) (c). However, in eviction proceedings, the question of title can be incidentally addressed but cannot be conclusively decided, as per Keshar Bai v. ChunnulalGold 15) 16) 17) 18) tenant can get benefit of protection against eviction(Section 13) a) Section 13 applies when the suit is based on any Section 12 ground, setting a precondition. b) Tenant must deposit rent within one month of summons or appeal, payable to the landlord or into the court. ©) Court can provisionally fix rent if a dispute concerns the rental amount. d) Incase of a disputed payee, the court may order payment into the court. e) False or frivolous disputes regarding payee allow the striking out of the tenant's defence. f) Following Section 13 safeguards against eviction on Section 12(1) (a) grounds. g) Failure to pay rent again may result in striking out the tenant's defence Section 14 prohibits tenants from subletting the accommodation without prior written consent from the landlord. a) Tenant can transfer or assign rights with the landlord's written consent under Section 14. b) Notice of subtenancy creation or termination must be given to the landlord within one month ©) Section 16 determines the circumstances under which a sub-tenant is recognized as a tenant in specific cases. Section Content Authority Section 17 Landlord recovering possession under 12(1) (¢) or 12(1) (f) cannot_—_Rent Controlling re-let within 2 years without RCA permission. Authority Deals with possession recovery for repairs, rebuilding, and re-entry. Must return possession within a month of completion; court may restore if he does not do so or does not start the work within one month from obtaining possession Section 19 Allows possession recovery for limited period tenancies. Court Public institutions, corporations, or local authorities may file Section 18 Court Pena eviction suits before the court oe Rent Controlling Authority €an|permit landlords to make Rent ntrollin Section 21 improvements or construct additional structures if the tenant fent Controlling Iga Authority Rent Controlling i i i in Section 22 Special provisions regarding vacant building sites are outlined. Cee Section 23 states that vacant possession to be returned to landlord in case of decree, order passed against the tenant. Eviction Of Tenants On Grounds Of Bona Fide Requirement [Sections 23a To 23j] a) Application for eviction on bona fide residential or non-residential grounds under Section 238 requires submission to RCA following CPC procedures. b) Summons issued by Rent Controlling Authority, with Order V and Order XVI CPC provisions applicable. ©) Tenant cannot contest eviction without obtaining leave to contest within 15 days of summons service. ) RCA must grant leave to contest within one month; decision on Section 234 application within six months. ) Presumption under Section 23-D (3) favors the landlord; no appeal against RCA’s Section 23A order.ait Gold” 19) 20) #) Revision against final orders on retired government servant's eviction application goes to the High Court within 90 days. £) Stay on eviction order's operation, whether from RCA or High Court, not exceeding six months in total. h) Landlord cannot re-let accommodation within two years of e permission, i) False Section 23-A applications may result in compensatory costs up to six months’ rent. j) Chapter III-A of MPAC Act applies to landlords defined in Section 23-3, i) aretired servant of any Government including a retired member of Defence Services; or ii) _aretired servant of a company owned or controlled either by the Central or State Government; or iii) a widow or a divorced wife; or iv) physically handicapped person; or v) a servant of any Government including a member of Defence Services who, according to his service conditions, is not entitled to Government accommodation on his posting to a place where he owns a house or is entitled to such accommodation only on payment of a penal rent on his posting to such a place. tion under Section 23-A without RCA Deposit Of Rent (Sections 24 to 27) a) Tenants must pay rent by the contract or by the 15th day of the month following, and landlords must provide receipts within 2 months. b) If a landlord fails to provide a receipt, the Rent Controlling Authority can order damages, not exceeding double the rent, and application costs. ©) Tenant can deposit rent with the Rent Controlling Authority if the landlord refuses, neglects, or there's doubt about the payee. d) Knowingly false statements in Section 25 application may lead to a fine equal to two months’ rent imposed by the Rent Control Officer. €) If a landlord unjustifiably refuses rent, the Rent Control Officer_can impose a fine equal to two months' rent. f) As per section 26 Deposit is not valid if i) Not within 21 days of date mentioned in section 24, ii) If'statement in application by tenant are false. iil) Deposit will be valid only when above two conditions does not exist. 8) Unclaimed deposited rent forfeited to the Government by the Rent Controlling Authority after five years from the notice of deposit posting. Appointment of Rent Controlling Authorities, their Powers, Functions and Appeals (Section 28 to 36) a) RCA appointed by Collector with State Government approval, not below the rank of Deputy Collector. b) CA's powers outlined in Section 29 include those of a Civil Court in specific matters. ©) RCA empowered to enter and inspect accommodations with a 24-hour notice between sunrise and sunset. d) RCA must follow due process, ensuring fairness and the audi alteram partem rule while issuing orders. €) Appeals against RCA orders go to the District Judge or Additional District Judge within 30 days. f) Second appeal to the High Court allowed on specific grounds as defined in Section 32. g) Section 33 allows correction of clerical or arithmetic mistakes in orders by RCA or the Judge. h) RCA exercises Magistrate powers for fine recovery and Civil Court powers for order execution. i) Finality of RCA's orders is established under Section 36.ary Gold Point One Liner Appointment of RCA RCA appointed by Collector with State Govt approval. Qualification of RCA RCA not below the rank of Deputy Collector. Powers of RCA RCA has powers of a Civil Court in specific matters. ‘Accommodation Inspection RCA can inspect with 24-hour notice, between sunrise and sunset. Procedural Fairness RCA's orders must follow due process, audi alteram partem. Appeals go to District Judge or Additional District Judge within 30 Appeal Process days. High Court second appeal grounds include legal contradictions, Second Appeal Grounds _unresolved legal issues, or procedural errors. Correction of Mistakes RCA can correct clerical or arithmetic errors on application from (Section 33) parties or otherwise. RCA exercises Magistrate powers for fine recovery and Civil Court RCA's Powers powers for execution. Finality of RCA's Orders (Section 36) RCA's orders are final as per Section 36, 21) Provisions Regarding Special Obligations of Landlords and Penalties (Section 37-44) a) b) 9 d) e) f) 8) Landlord obligated to maintain accommodation in good and tenantable repairs under Section 37(1) of MPAC Act. Tenant can deduct or recover repair expenses from the landlord, not exceeding one twelfth of the annual rent (Section 37(2)). RCA can order restoration if essential supplies are cut off by the landlord (Section 38). i) If cut-off is without just cause, RCA can direct compensation, not exceeding fifty rupees, from landlord to tenant (Section 38). ii) Essential supply or service includes water, electricity, lights, conservancy, and sanitary services (Section 38). Section 39 allows the Collector or authorized officer to regulate letting and require information on vacant accommodations. Section 40-A provides special allotment provisions during emergencies. i) Tenancy of a person allotted accommodation under Section 40-A terminates one year after the emergency proclamation ceases. Section 41 outlines the liability of a person allotted accommodation to pay rent. A person allotted accommodation by virtue of office must vacate within seven days of ceasing to hold the office, extendable up to four months by the Collector or authorized officer Section Content 37(1) Landlord must keep accommodation in good and tenantable repairs. 371@) Tenant can deduct/ recover repair expenses, not exceeding one twelfth of annual rent. 3a RCA orders restoration if essential supplies cut off; compensation if without just cause. 38 _ Essential supplies include water, electricity, lights, conservancy, and sanitary services.Gold” Section Content Collector or authorized officer can regulate letting, require information on vacant, 39 accommodations. 40-A Special allotment provisions during emergencies. Tenancy of a person allotted accommodation terminates one year after the: emergency proclamation ceases. 41 Liability of a person allotted accommodation to pay rent. Person allotted accommodation must vacate within seven days of ceasing office, extendable up to four months by Collector 40-4 41 22) Penalties Serial N Section Contravention Punishment Unlawful charge claimed or received in 1 7.10 excess of standard rent as fixed under Section 7 or 10 Claiming more than one month rent, claiming 2 6(2),6(3) im for relinquishment, transfer, or assignment of tenancy Tenant sublets or parts with possession, assigns whole or part of accommodation Landlord relets or transfers possession of 4 7 accommodation taken for bona fide 3 months; fine up to Rs 1000; both requirement within 2 years Landlord relets of transfers whole or part of BG accommodation obtained for bona fide _3.months; fine up to Rs 1000; both requirement within 2 years e 38 Landlord cuts off or withholds esential 5 sins: fine up to Rs 1000: bat supply Does not follow the order of the collector under these sections 3 months; fine claimed or re unlawful charges ved + 1000: both 6 months; fine = unlawful charges claimed/received + 5000; both 3 12(1)(b) Fine up to Rs 1000 7 39,404 3 months; fine up to Rs 1000; both | 23) Judicial Magistrate First Class can take cognizance of offences punishable under the Act. a) Cognizance shall be taken only on complaint. b) Magistrate can impose a fine exceeding two thousand rupees under the Act. ©) The limitation period for taking cognizance of offences punishable under the Act is 3 months. 24) The jurisdiction of Civil Court is ousted in respect of : a) Fixation of standard rent in relation to any accommodation; b) Any other matter for which Rent Controlling Authority is empowered by or under the Act; ©) Granting injunction in respect of any action taken or to be taken by the RCA. 25) Civil court's jurisdiction not ousted in case of deciding dispute as to title and persons who are entitled to receive rent, 26) Contravention or abetment of any order under this Act is deemed to be a contravention as per Section27) Section 47 establishes liability for contravention in the case of a company, firm, etc. 28) Collector, Rent Controlling Authority, or officers authorized by the Collector are deemed public servants under Section 21 of the Indian Penal Code 29) The State government has the power to make rules for the purpose of this act. 30) The Act of 1955 is repealed by the Act of 1961SUBJECT SPECIFIC ATS eee (Advance Test Ser for both preliminary & ONE-TO-ONE mains examinations Mentorship ses ‘One to many s Al caminciaL wnretuicence) Assistance 7 to all the stucer 7 ‘STATE-SPECIFIC Crash courses included with comprehensive batch STUDY MATERIALS subscription GK FIESTA Tests every week to help students prepare for thelr respective targeting states J U D | C | ARY G 0 LD? : alga ik TESTS Dod AETUNSUTD EA JUDGMENT SHEETS a gle eS Te Cs PUTT EY www.toprankers.com | 76 76 56 44 00RANK 9 SUKRITI JHA DJS AND MPCJ TOPPER “The support and guidance I received from the faculties at Judiciary Gold were exceptional They were clways ready and willing to address my doubts and provide clarification on complex Topics. 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