Delhi Rent Control Act, 1958:

Introduction:

The Delhi Rent Control Act, 1958 is a significant legislation that governs the rental of premises
in Delhi, India. It aims to regulate rent, protect tenants from arbitrary eviction, and provide a
legal framework for resolving disputes between landlords and tenants. The Act encompasses
several provisions that ensure fairness, security, and stability in the rental market.

Key provisions of the Delhi Rent Control Act, 1958.

1. Control of Rent (Section 3):

One of the fundamental provisions of the Act is the control of rent. Section 3 states that
the rent payable for any premises covered under the Act should be the standard rent or the
agreed rent, whichever is lower. This provision prevents landlords from charging
exorbitant rents and ensures that tenants are not subjected to unfair rental increases.
2. Determination of Standard Rent (Section 4):
Section 4 outlines the factors considered in determining the standard rent of a premises.
These factors include the type, location, amenities, size, and condition of the premises, as
well as prevailing market rates. The competent authority, known as the Rent Controller,
is responsible for determining the standard rent based on these considerations. This
provision ensures that rents are reasonable and in line with the prevailing market
conditions.
3. Protection from Arbitrary Eviction (Section 14):
Section 14 provides protection to tenants against arbitrary eviction. It states that a
landlord cannot evict a tenant from controlled premises unless specific grounds for
eviction, such as non-payment of rent, subletting without permission, or bona fide
requirement of the premises by the landlord, are established. This provision ensures
security of tenure and protects tenants from unjust eviction.
4. Procedure for Eviction (Section 15):
Section 15 outlines the procedure for eviction of a tenant. It requires the landlord to issue
a notice of eviction to the tenant, specifying the grounds for eviction and providing a
reasonable opportunity for the tenant to respond. If the tenant fails to comply with the
notice or contest the eviction, the landlord can file an eviction petition before the Rent
Controller for further adjudication. This provision ensures that eviction processes are
carried out in a fair and transparent manner.
5. Deposit of Rent (Section 17):
Section 17 deals with the deposit of rent by the tenant. It states that if the tenant fails to
pay the rent within the prescribed time, the landlord can file an application to the Rent
Controller for permission to deposit the rent. The Rent Controller can then direct the
tenant to deposit the rent with the Rent Controller or any other person specified in the
 order. This provision ensures that rent payments are made in a timely manner and
provides a mechanism to resolve rent-related disputes.
6. Appeals (Section 22):
Section 22 provides for the right of appeal to a higher authority. It states that any person
aggrieved by an order or decision of the Rent Controller can file an appeal before the
Rent Control Tribunal. The Tribunal has the power to hear and decide on such appeals
and provide appropriate remedies. This provision ensures that parties dissatisfied with the
decisions of the Rent Controller can seek a review through the appellate process.
7. Penalties (Section 25):
Section 25 establishes penalties for non-compliance with the provisions of the Act. It
states that any person who contravenes the Act, including landlords and tenants, may be
liable for penalties, which may include fines or imprisonment, as determined by the Rent
Controller or the Tribunal. This provision acts as a deterrent against unlawful practices
and encourages compliance with the Act's provisions.

Conclusion:

The Delhi Rent Control Act, 1958 plays a crucial role in safeguarding the rights of tenants in
Delhi. The Act's provisions, including control of rent, protection from arbitrary eviction,
procedures for eviction, deposit of rent, appeals, and penalties, ensure fairness, stability, and
security in the rental market. By providing a legal framework for rent regulation and dispute
resolution, the Act promotes harmonious landlord-tenant relationships and contributes to the
overall welfare of tenants in the city.

MORE MATERIAL:

Introduction

The Delhi Rent Control Act, 1958 was approved by both Houses of Parliament and by the
President on December 31, 1958. It came into force on February 9, 1959. It extends to areas
within the New Delhi Municipal Committee, the Delhi Cantonment Board, and the Delhi
Municipal Corporation. Also, courts are bound lawfully to read the provisions of this Act
keeping in mind the rights of both the tenant and the landlord. The rental laws are intended to
serve two main purposes:

1. Protect the tenant from arbitrarily paying more than the standard rent
2. Protect the tenant from unilateral eviction.

The Delhi Rent Control Act, 1958

The Delhi Rent Control Act, 1958, was amended in 1988, it provides the landlord with a right to
evict the tenant from the residential premises if the landlord is in bonafide need to conduct a
business or reside in the property. In Smt. Gian Devi Anand vs Jeevan Kumar And
Others (1985), it was held that the Court regards the bonafide need of the landlord in corporate
and residential matters alike.

Few drawbacks

1. This Act is majorly tenant-friendly and landlords usually face problems in removing a
tenant usually. Even the conditions under which a landlord can remove a tenant are
strictly monitored. Majorly the Act favors tenants with the intention for outstation
students studying in colleges in Delhi. These students live miles away from their homes
and so are many times exploited by landlords.
2. Another major drawback is that it mismatches between the tenant’s capacity to pay the
rent and the actual cost that accommodation holds. Also, the amount spent in law
enforcement, in the cases and applications is too high.
3. Another issue is very low rents and high maintenance of the property. Many tenants are
very old, so they have a fixed rent, which makes it difficult to ensure regular
maintenance.

Protection against eviction

A landlord cannot arbitrarily evict a tenant. Although if defaults such as non-payment or

discretionary withdrawals by tenants are made, then the landlord is allowed to take back the
property. Also, tenants of tenants have the same rights as lawful tenants regarding protection
from withdrawals. However, on bona fide needs and grounds, eviction can be sought.

Consequences of the ancient Rent Act in Delhi

1. This law compromises the quality or maintenance of the property as landlords do not
maintain the property with care which yields their low returns.
2. These rules limit supply and drive out genuine renters, forcing them to settle for
unregistered and unlawful arrangements.
3. In 2020, Delhi Government has chalked out a plan to allow the legislation to increase the
rent by 25 percent to fund the building’s landlord. Since the rules tend to favor the
tenants, the state government can improvise the laws. For example, the Tamil
Nadu government has now come up with ways to balance rent control legislation. The
state is projected to expand the rental market in this state in order to deal with eviction
conflicts. Withdrawing rent control boosts property owner confidence by aiming for good
rental returns, thereby helping to unlock the rental housing market’s potential. Petitioners
have petitioned the High Courts of Maharashtra, Tamil Nadu, and Karnataka to remove
similar anti-rent control statutes. While some of these appeals have been granted, Delhi
may be on the verge of enacting a better tenancy law for parties, tenants, and landlords.

Section 25B of the Act

Section 25B of the Delhi Rent Control Act, 1958 describes the special procedure for the disposal
of applications for eviction on the ground of bona fide requirement. It has a total of 10
subsections for defining the same. This section provides a procedure for the landlord if he wants
to recover the possession of the property. Subsection (1) specifies that the recovery of possession
of any premises should be one based on the following grounds –

1. As given in clause (e) of subsection (1) of Section 14 which states that the premises
which are let out are required in a bonafide manner by the landlord for his purpose or any
of his family members if the landlord is an owner himself; or if the landlord or any other
person for whom the premise is held, has no other suitable options to reside, it is a
sufficient and a bonafide ground; or
2. Section 14A states that the landlord owning any residential accommodation in Delhi or
property given to him by the Central government or local authority must vacate such
property if ordered by the government/authority. This is done so that they could be
allotted to more deserving ones. Also, he must take responsibility for the government
accommodation in case of any default. Such a person, who has been required to vacate or
incur obligations in respect of public premises must be enabled to shift to residential
accommodation owned by him. Therefore, a right is inferred on such a landlord. Apart
from this, there should be an existent relation between landlord and tenant and the
landlord (or his wife or child) must be the owner of the premises. In case the landlord
satisfies the conditions mentioned in Section 14A, a special right to obtain eviction
accrues to him or Section 14B or 14C or 14D can also be referred to.
Further under Section 25B, subsection (2), for every such application as we saw above,
the Controller has to issue the summons.

Subsection (3) elaborates on the way by which the summon has to be issued –

 Clause (a) – the Controller shall issue the summon to be served by registered post along
with the issue of summons for service on the tenant, addressed to the tenant or his agent
empowered to accept the service at the place where the tenant or his agent actually and
voluntarily resides or carries on business. And if required, he shall also publish the
summon in the newspaper.
 Clause (b) – when the clause containing summon is received back by the Controller or
the acknowledgment is signed by the tenant and that is received by the Controller, then it
is said that the service of summoning is made.

Subsection (4) states the next step, wherein after the summon is served on a tenant, the tenant
cannot contest the eviction. If he wants to do so, he has to file an affidavit with proper grounds
and reasons. The Controller shall provide him with the proper time to contest such application
(Subsection 5) and after giving such time, shall proceed with the hearing as soon as possible
(Subsection 6). In case of default in appearing for such objection or otherwise in appearing for
summons, it will be assumed that the application for eviction is accepted by the tenant.
The Act strictly lays down that no appeals should lie against an order passed on recovery of
premises by the Controller, provided that the High Court can ask for records of the case and pass
orders on it (Subsection 8) and if no review is ordered by High Court, then the Controller can use
his power of review.

Judgments

1. In Baldev Singh Bajwa v. Monish Saini (2005), it was held by the Supreme Court that
whenever a landlord seeks ejectment of a tenant for a bonafide purpose, then it shall be
presumed that such ejectment is genuine in nature. Furthermore, the tenant bears the
burden of rebutting the aforementioned inference.
2. In another case of Satyawati Sharma vs. Union of India & Anr. (2008), it was held that
Section 14(1)(e) of the 1958 Act is violative of Article 14 of the Constitution of
India because it discriminates between the premises rented out for residential and non-
residential purposes. This means when the landlord gave the property to the tenant for his
commercial purposes and now wants eviction of such tenant for his (landlord’s)
residential purpose, then he cannot practice his right and his right is restricted because
now the property is used for commercial purpose and he himself allowed this.

Conclusion

To conclude, the Act and specifically provision 25B of the Delhi Rent Control Act, 1958 tends to
protect tenants more than the landlord. It has become quite an ancient law now and the need is to
come with more amendments to the Act as per the need of the changing times, especially in a
city like Delhi.

The main disadvantage of the Delhi Rent Control Act is that the income from the property is
stagnant. As a result, measures such as key money have emerged. As a result, the law has limited
renters’ access to low-income communities, not only because of the black market in rented
properties but also because they cannot afford significant deposits for rented premises.