TNRRRLT Act,2017

AN OVERVIEW ON THE TAMIL NADU REGULATION OF RIGHTS AND RESPONSIBILITIES OF LANDLORDS AND TENANTS ACT, 2017

1. (TAMIL NADU ACT NO. 42OF2017)
JAI BHARATH
ADVOCATE
M/s Giridhar& Sai
THE TAMIL NADU REGULATION OF RIGHTS AND
RESPONSIBILITIES OF LANDLORDS AND TENANTS
ACT, 2017
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2. INTRODUCTION
The Act-2017was enacted to replace the former State enactment,namely,
othe Tamil Nadu Buildings (Lease and Rent) Control Act-1960 [Sec –47]
Received assent of the Governor on 04.08.2017.
Came into force on 22.02.2019.
Objective
•To establish framework for the regulation of the rent
•To balance the rights and responsibilities of landlords and tenants
•To provide fast adjudication process for resolution of disputes;
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3. The Act is extendto…(Sec-1(2))
All Urban Areas of the State of Tamil Nadu
Extent
Urban Area means ….(Sec-2(o))
1.Areasthat fall under the jurisdiction of either the Municipal
Corporation or
2.The Municipality or
3.The town panchayat or
4.The Cantonment Board, as the case may be.
Note:
Section 3 (12-D). 'Municipality’ of Tamil Nadu District Municipalities Act, 1920
Section 3(18-A) 'Panchayat town'of Tamil Nadu District Municipalities Act, 1920
Section 10‘Cantonment Board’ of The Cantonments Act, 2006
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4. Premises[Sec-2(f)]
Premisesmeans
anybuilding or part
of a building let
separately for the
purpose of
residence
Commercial
Educational Includes
Garden, grounds and out
houses, appertaining to such
or part of the building
any fitting to such
building or part of the
building for more
beneficial enjoyment
thereof,
But does not include
hotel, lodging house,
dharamshalaor inn, or
the like;
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5. EXCLUSION Sec -3
a)AnypremisesownedbyCentralorStateGovtorLocalauthorityoraGovtundertakingorenterpriseora
statutorybodyorCantonmentboard;
b)premisesownedbyCompany,universityororganisationgivenonrenttoitsemployeesaspartofservice
contract;
c)anypremisesownedbyreligiousorcharitableinstitutionsasmaybespecifiedbytheGovernment,by
notification;
d)anypremisesownedbyWaqfregisteredundertheWaqfAct,1995ortoanytrustregisteredundertheIndian
TrustsAct,1882;
e)anyotherbuildingorcategoryofbuildingsspecificallyexemptedinpublicinterestbytheGovernment,by
notification:
Proviso:anyownerofthepremisesfallingunderclauses(a)to(d)wishesthatthetenancyagreemententered
intobythemberegulatedundertheprovisionsofthisAct,theymayinformtheRentAuthorityoftheirdesireto
dosoatthetimeofinformationofthetenancyagreementundersection4ofthisAct.
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6. LANDLORD[Sec-2(c)]
Landlord means ….
a person whofor the time beingis receiving or is entitled to receive the rent of a premises,
oon his own account and
oShall include his successor-in-interest:
Proviso: A person who is entitled to receive for benefit of any other person who
cannot enter into a contract, whether a trustee, guardian or receiver, then such trustee, guardian
or receiver shall also be a landlord for the purposes of this Act;
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7. PROPERTY MANAGER [Sec –17–19]
Sec 17-Entry with Notice (24 hrs before the time of entry)
•To carry out repairs/replacement/get work done
•To carry out inspection for determining the habitual state of the premises
•For any other reasonable reason as specified in the tenancy agreement
17(2) –Notice demands
Reason
The Day
Time of entry between 7am to 8pm.
Sec 18 –Information about the Property Manager
Landlord must provide tenant
•Property manager’s name
•Proof that he is agent of the landlord
•If manager is a company then name of the company and contacting employee
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8. PROPERTY MANAGER [Sec –17–19]
continued…..
Sec -19 –Role and Responsibilities of Property Manager
(a)collection of rent against receipt;
(b)getting essential repairs done on behalf of the landlord;
(c)inspection of the premises, from time to time;
(d)giving notices to tenant for—
(i) proper maintenance of the premises;
(ii) delay in payment of rent;
(iii) revision of rent;
(iv) vacation of premises; and
(v) renewal of tenancy;
(e) help in resolution of disputes among tenants and between landlord and tenant;
(f) any other matters relating to tenancy
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9. TENANT[Sec-2(n)]
Tenantmeans any person by whom or on whose account or behalf
the rent of any premises is payable
and includes….
oAny person occupying the premises as a sub-tenant, also
oany person continuing in possession after the termination of his tenancy, or
But does not include any person against whom any order or decree for eviction has been
made;
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10. FORMATION OF AUTHORITIES
SEC 30-35
Rent Authority means an officer appointed under section 30. [Sec-2(i)]
The Collector shall,with previous approval of the Govt, appoint an officer, not
below the rank of Deputy Collector to be the Rent Authority for the area
within his jurisdiction to which this Act applies.[Sec-30]
Power and Procedure of the Rent Authority:[Sec-31] & (Rules –8&9)
•Rent Authority shall have the same powers as Rent Court
•In any proceeding u/ss 9,10,14,15 and 20 of this act.
•Procedure is laid down in ss 36 and 39.
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11. FORMATION OF AUTHORITIES
C o n t in u e d… . .
“Rent Court” means a Rent Court constituted under section 32;. [Sec-2(j)]
The Govt may by notification,constitute Rent Courts in as many urban areas as
may deemed necessary[Sec-32]
Proviso -Govt may designate
By General or special order, business be distributed among the two or more rent
courts
The Presiding officer of the Rent Court shall be in the cadre of the District
Judge
Existing rent court as the Rent Court under this act
Any other court established under the any other law as the
Rent Court under this act.
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12. FORMATION OF AUTHORITIES
C o n t in u e d… . .
“APPEAL (RLTOP) to the Rent Court having territorial jurisdiction” shall lie against the order of the
Rent Authority;[Sec-33]; Limitation –30 days from the date of Order.
RENT COURT alone has jurisdiction and no Civil Court shall have jurisdiction to the area this
Act extends. [Sec-34]
Proviso-Court shall give due regard to the Transfer of Property Act, 1882, Indian Contract
Act, 1872 or
or any other substantive law substantive law applicable to such matter.
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13. FORMATION OF AUTHORITIES
C o n t in u e d… . .
“Rent Tribunals” means a Rent Tribunals constituted under section 35;. [Sec-2(l)]
The Govt may by notification,constitute Rent Tribunals in such places as deemed
necessary and notify Principal Tribunal in the places of two or more
tribunals[Sec-35]
Proviso -Govt may designate
The Presiding officer of the Rent tribunalshall be from the State Higher Judicial
Service
Existing rent tribunal as the Rent tribunal under this act
Any other tribunalestablished under the any other law as
the Rent tribunalunder this act.
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14. FORMATION OF AUTHORITIES
C o n t in u e d… . .
“Rent Tribunals” (RLTA)consists of one or more benches
With each bench headed by an Appellate Member
Senior Most Appellate Member is the Principal Appellate Member
Transfer of cases(35(2))-Principal Appellate Member may transfer appeals from one Bench of
the Tribunal to another.
Principal Rent Tribunal may transfer appeal from one Tribunal to another tribunal.
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15. Tenancy Agreement Sec -4
•Tenancy Agreement is mandatory
•If there is no agreement prior to commencement of this act (22.2.2019) then within a
period of 210 days the parties shall enter into an agreement.
•The said tenancy agreement shall be registered with the Rent Authority by either of
the party by making an application in the Form specified in the Ist Schedule within (90
days-R 3(3)) from the date of execution.
•On receipt of the Application the Rent Authority shall register the agreement (within 30
days)
•The rent authority shall reject the application with reasons after giving the opportunity of
being heard by the parties, if such application does not conform to the provisions of this
Act.
•The Rent Authority shall provide registration number(T.R.No.) R 3(5)and shall also
upload details and tenures of the premises and the tenancies respectively within 15 days.
•Effect of Non-registration:-The rent court is not expected to weigh the evidentiary
value of the tenancy agreement.
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16. Period of Tenancy Sec-5
Period of Tenancy as specified in the Tenancy Agreement
For renewal or extension of Tenancy
Tenant may approach the landlord
Prior to the expiry of the tenancy agreement
If agreeable to the landlord may enter into a new tenancy agreement.
Tenancy agreement expires, the tenancy shall be month to month basis for a period of six
months
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17. Tenancy shall ceaseat the deathof the Tenant
But if the successorhad been ordinarily living or working in the premises with the
deceased tenant uptohis death then Successor in interest shall have right of tenancy
for the remaining period in the following order:
a)Spouse;
b)Sons, daughters or daughter-in-law being the widow of a pre-deceased son;
c)Either or both of the surviving parents;
Successor Sec-6
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18. Subletting Sec-7
Previous consent from the landlord is mustfor sub-lettingafter the commencement of
this Act
But before the commencement of this act if the tenant has sub-let then the tenant shall
inform the landlord the date of commencement or termination of sub-tenancy, as the case
may be, within one month.
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19. Rent Sec-8 to 11
Rent agreed between the landlord and tenant;(tenancy after commencement of this act)
If no tenancy agreement then Rent(tenancy before commencement of this act) Sec -8
agreed between the landlord and tenant in the agreement executed between them
under Sec 4(2); Old tenancy agreement exists then agreed rent in such agreement.
Revision of rent shall be as per terms set out in the agreement;
The landlord shall give notice in writing three months before the revised rent becomes due.
If a tenant fails to give the landlord notice of termination of tenancy, the tenant shall be deemed to
have accepted whatever rent increase has been proposed by the landlord; Sec -9
Rent may not be increased during currency of the tenancy period, if the premises let for the fixed term
unless the method of working out of increase is set out in the agreement;
Expenditureon account of Improvement, addition or structural alteration in the premises, such increase
shall become effective from one month after the completion of work.
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20. Rent Sec-8 to 11
Continued…..
Rent authority on an application made by the landlord or tenant
Shall fix or revise the Rent and other charges and also fix the date Sec -10
from which the rent payable in accordance with tenancy agreement
Security deposit shall not be charged in excess of three times the monthly rent;
Security deposit shall be refunded to the tenant during vacating the premises by the Sec -11
tenant after making due deduction of any liability of the tenant.
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21. Obligations of Landlord and Tenant
Sec 12 -20
Agreement(S-12)-Landlord shall give one original signed and registered
agreement(with Rent Authority) to the tenant within 15 days
Rent Reciept(S-13)-Written Receipt to be given for rent paid signed by landlord or
property manager. Proviso -payment is through electronic medium, the bank
acknowledgement shall be proof
Landlord Maintenance(S-15)-Joint responsibility on the both parties as specified in the 2
nd
Schedule
Roles of Property Manager(S-17-19)-Please refer slide 7 & 8
Essential Services (S-20)-No landlord or Tenant shall cut off essential services
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22. Obligations of Landlord and Tenant
continued…..
Sec-20 –If essential service is cut off, on the complaint from either of the party, the rent authority
may pass an interim order for restoration.
-Rent Authority shall also complete the main inquiry within one month of filing of such
complaint.
-Rent Authority may also levy penalty on the person responsible but not more than
Rs.5000/-
-Compensation for the frivolous and vexatious complaint.
Essential Service explained-supply of water, electricity, lights in passages, lifts and on staircases,
conservancy, parking, communication links, sanitary services and the
like.
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23. Obligations of Landlord and Tenant
continued…..
Rent (S-13)-Rent be paid within stipulated time in tenancy agreement
DepositofRent(S-14)-Refusaltogivereceiptthentherentshallbesentbypostalmoney
orderoranyothermethod(R4(1))forconsecutivelytwomonths,iflandlorddoesn’taccept
(alsobonafidedoubttowhomtherentispayable)thendepositthesamewithrent
authority.
Tenant Maintenance(S-15)-Joint responsibility on the both parties as specified in the 2
nd
Schedule
Tenant to look after the premises(S-16)-(a) not intentionally or negligently damage the
premises or permit such damage;
(b) notify the landlord of any damage as soon
as possible;
(c) take reasonable care of the premises and its
contents and keep it reasonably habitable
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24. Repossession of the Premises
Sec 21 -29
Sec-21 –Tenant shall not be evicted during period of Tenancy
Grounds for recovery of possession:
a)Failed to enter into an agreement
b)Not paid the arrears in full of rent for two months including interest for delay. (Within 1 month notice in the manner
provided in section 106(4) of the Transfer of Property Act, 1882)
Proviso
c) Subletting without consent from landlord
d) Continued misuse of the premises even after notice from landlord to stop such misuse
e) Repairing/building/rebuilding/additions/alterations/demolition of the premises
Proviso
No order of eviction, if tenant paid default rent within 1 month of notice
being served
The above relief shall not be available, if tenant defaults consecutively
for 2 months in any one year subsequent to above relief
Re-entry shall be allowed only when mutually agreed
Re-entry shan’t be allowed where tenant has been evicted under orders of Rent Court
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25. Repossession of the Premises
Continued….
Grounds for recovery of possession:
f)Repairing/building/rebuilding/additions/alterations/demolition of the premises for change of its use as a consequence
of change of land use
g)the premises required for himself or for any member of his family or for any person for whose benefit the premises were
held
h)Tenant has given written notice to quit in consequence the landlord has contracted to sell the accommodation or has
taken any other step, as a result landlord’s interest will seriously suffer.
Note: in the case of Repairing/building/rebuilding/additions/alterations/demolition under clause (e), the Rent Court may
allow eviction from only a part of the premises, if the landlord is agreeable to the same.
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26. Repossession of the Premises
Section -22
Continued….
Where recovery of
possession is made u/s
21(2)(g), then the landlord
can obtain possession
Within 1 month –for
residential purpose
Within 3 months –for
commercial purpose
Where a landlord recovers
possession of any premises
from the
tenant made u/s 21(2)(g),
the landlord can re-let only
with the permission of the
Rent Court within three
years
from the date of obtaining
such possession
Violation –penalty –shall
not be more than
Rs.25,000/-
Where a landlord acquires
any premises by sale, gift,
lease or exchange, no
recovery could be made by
him u/s 21(2)(g) until the
tenancy agreement created
before such transfer elapsed
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27. Repossession of the Premises
Continued….
Compensation inthecaseofNon-Vacancy–Doublethemonthlyrentfornon-vacancy
aftertenancyhasbeenterminatedbyorder,noticeoragreement.[Sec-23]
RefundofadvancerentbytheLandlord–Landlordshallrefundtheadvancerenttothe
tenantafterdeductingtherentandotherchargesduebythetenant.Incaseofdefaultof
refundlandlordshallbeliabletopay8%interestatsuchrateasmaybeprescribedfrom
timetotimeontheamountdefault.[Sec-24]
Payment ofRentduringevictionproceedings –Landlordmayatanystageofthe
proceedingsapplytoRentCourttopayrenttothelandlordandtheRentCourtmayorderthe
same.[Sec-25]
Permissiontobuildadditionalstructures-SubjecttoLandlord’sreadyandwillingnessto
commencetheworktobuildadditionalstructurestheRentCourtmaypermitthelandlordto
dosuchwork.[Sec-26]
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28. Repossession of the Premises
Continued….
Specialprovisionregardingvacantsites–SubjecttoLandlord’sreadyandwillingnessto
erectanybuildinginthevacantsitetheRentCourtmaypermitthelandlordtodosuchworkby
directingseverance,placethelandlordinpossessionofthevacantland,determinetherent
payableinrespectofrestofthepremises,andmakesuchotherordersasitthinksfit.[Sec-27]
VacantpossessiontoLandlord–TheorderoftheRentCourtforevictionshallbebindingon
alloccupantswhomaybeinoccupationofthepremisesandvacantpossessionthereofshallbe
giventothelandlordbyevictingallsuchoccupantstherefrom.[Sec-28]
Noticebytenantgivinguppossession–TheTenantmaygiveuppossessionbyissuingnotice
assetoutinthetenancyagreementandintheabsenceofsuchclauseintheagreementthe
noticeshallbegiventothelandlordofatleastonemonthbeforegivinguppossession[Sec-29]
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29. Procedure of Rent Court and
Rent Tribunal
Section -36
Not bound by CPC, but shall be guided by Principles of Natural Justice
Power to regulate their own procedure
Rent Court shall follow the following procedure:
Evidence shall be given by affidavit, however in the interest of justice the court may order attendance
for examination or cross examination of witnesses
The provisions of CPC is applicable for service of summons
Every application or appeal shall be in the forms as prescribed
a)Parties may file an application accompanied by affidavits and documents if any;
b)Court, then, shall issue notice accompanied by application, affidavits and documents;
c)Opposite party shall file a reply accompanied by affidavits and documents, after
serving it to applicant;
d)The applicant may file rejoinder after serving it to opposite party;
e)The rent court then fix the date of hearing.
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30. Procedure of Rent Court and Rent
Tribunal
Section –36
Continued…
The Rent Court shall not allow more than three adjournments, in case if it does then with
reasons with writing and reasonable cost is mandatory.
All applications u/s 21(2)(a),(b),(c),(e),(f) & (h) shall be decided within 90 days
All applications u/s 21(2)(d) & (g) shall be decided within 30 days (Premises misuse and
premises required for himself)
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31. Powers of Rent Court and Rent
Tribunal
Section -37
Same powers as CPC for the purpose of : -
Any proceeding before Court and Tribunal shall be deemed to be
a judicial proceeding within the meaning of Ss 193 and 228, and for the purpose of S 196 of IPC and
Civil Court for the purposes of S 195 and Chapter XXVI of the CrPC.
a)Summoning and enforcing the attendance of any person and examining him on oath;
b)Requiring the discovery and production of documents;
c)Issuing commissions for examination of the witnesses and documents;
d)Issuing commissions for local investigation;
e)Receiving evidence on affidavits;
f)Dismissing an application or appeal for default or deciding it ex-parte;
g)Setting aside any order of dismissal or appeal for default or any other order passed by ex-parte;
h)Execution of its orders and decisions under this act without reference to any civil court;
i)Reviewing its orders and decisions;
j)Any other matter as may be prescribed.
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32. Powers of Rent Court and Rent
Tribunal
Section –37
Continued…
For holding any inquiry or discharging any duty:
Appoint assessor or valuer to advise in the proceedings. (Expert opinion)
Any clerical, arithmetical mistake or any other error out of accidental omission may be
corrected.
The Rent Court may exercise the powers of the Judicial Magistrate of the First class for
recovery of fine.
Order made by Court or tribunal is executable by the Rent Court as a decree of a civil
court
The rent court may set aside any order passed ex-parte
Order made by rent court shall, subject to decision in appeal, be final.
a)24 hrs notice in writing to enter and inspect any premises at any time between sunrise and sunset;
b)By written order, require any person to produce for his inspection such books or documents
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33. Appeal to Rent Tribunal
Section –38
“APPEAL (RLTA) to the Rent tribunal (within local limits of whose jurisdiction the premises situated) shall
lie against the order of the Rent Court;Limitation –30 days from the date of Order along with copy of such
final order.
Serve notice and fix hearing not later than 30 days form the date of service of notice of appeal and appeal
shall be disposed of within a period of 120 days daysform the date of service of notice of appeal
Tribunal may allow documents at any stage of the proceedings but this facility is available only once.
Tribunal may pass interlocutory order.
While deciding the appeal, after recording reasons, confirm, set aside or modify the order of the Rent Court.
The decision is final and no further appeal or revision shall lie.
On application or on its own motion transferany case from one Rent Court to another. After transfer of
case the rent court shall proceed from the stage which it was transferred.
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34. Execution to Rent Tribunal
Section –39
Execution (RLTEP) –On application, execute a final order by adopting one or more of the following modes:
The Rent Court may take help from local government or local body or the local police for the execution of
the order. Note: Payment of cost to the police be decided to obtain the help of police.
The disposal of execution proceedings shall be made within 30 days from the date of service of notice to an
opposite party.
a)Deliveryofpossession
b)Attachmentandsaleofmovableorimmovableproperty
c)Attachmentofanyoneormorebankaccounts
d)Appointinganyadvocateoranyothercompetentpersonfortheexecutionoftheorder.
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35. Miscellaneous
Jurisdiction of Civil courts barred (Sec -40)
CourtFees-(Sec-41)
(1)TheprovisionsoftheTamilNaduCourt-feesandSuitsValuationAct,1955shallapply.
(2)TheapplicationsforrecoveryofpossessionmadetotheRentCourtandthememorandum ofappealspresented
beforetheRentTribunalshallbetreatedassuitsforthepurposesofcomputationofcourt-fees.
(3)Thecourt-feesontheapplicationfiledbeforetheRentAuthorityshallbesameasofaninterlocutoryapplication
presentedinacivilcourt.
AllmembersofRentCourt,TribunalandRentAuthorityshallbedeemedtobepublicservants.(Sec-42)
NosuitorprosecutionlieagainsttheRentCourtorTribunalorRentAuthority.(Sec-44)
Powertomakerules(Sec-45)
PowertoRemovedifficulties(Sec-46)
Repealandsavings(Sec-47)
Act1960shallbecontinuedinforceforallcasesandotherproceedingspendinginthesaidact.
Plaintiffentitledtowithdrawwithlibertytofilefreshapplicationunderthisact.[Limitation180daysforwithdrawand360daysfor
filing]
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36. ANY QUESTIONS AND COMMENTS
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