Introduction
The realm of rental housing in India is a complex and multifaceted one, governed by a myriad of laws, regulations, and court judgments. The relationship between tenants and landlords is a delicate balance of rights and obligations, with both parties seeking to protect their interests. As the demand for rental housing continues to soar, driven by urbanization and a growing middle class, it’s essential to understand the legal framework that governs this relationship.
For centuries, Indian law has recognized the importance of regulating the relationship between tenants and landlords. From the Rent Control Acts of various states to the Transfer of Property Act, 1882, and the Model Tenancy Act, 2019, the legal landscape is dotted with statutes that aim to balance the competing interests of property owners and tenants. Despite these efforts, disputes and conflicts continue to arise, often due to a lack of understanding of the law or a failure to adhere to its provisions.
This article aims to provide a comprehensive overview of the rights and obligations of tenants and landlords under Indian law. By exploring the key provisions of the relevant statutes and judicial precedents, we hope to empower both tenants and landlords with the knowledge they need to navigate the complex world of rental housing. Whether you’re a tenant seeking to protect your rights or a landlord looking to assert your interests, this article will provide you with a deeper understanding of the legal framework that governs the rental market in India.
Definition
Landlord
The lessor/landlord must be competent to contract, that is they must be of the age of majority and possess a sound mind, at the time of granting the lease. A minor cannot grant lease since he is incompetent to contract. But his guardian of property may grant such lease, without the court’s permission, for a period not exceeding five years or lasting for more than one year after the minor attains majority.
A lessor must also have the right to transfer the possession of the property to the tenant. His authority to effect the lease cannot be questionable. Such ‘authority’ either stems from the ownership of the property, or from having the possession of the property. Since a lease is only the transfer of the possession of a property, thus it is not required that the lessor be the owner of the property, a lessee may also authorise a lease in favour of another person subject to the provision that such title must not extend beyond such person’s own possession. A subsequent lease granted by a lessee is known as a sub-lease, or derivative lease.
Tenants
In case of lease, the lessee/tenant must also be competent to contract as it contemplates agreement to a liability of payment of the consideration on part of the tenant. Thus, a minor or a person of an unsound mind cannot be tenants. A juristic person such as a company, or a registered firm may also be the lessee, but an unregistered firm, not being a juristic person, is not competent to be a lessee. Where a firm is a tenant, and a partner executes the lease deed on its behalf, the lease continues to exist even after retirement of the partner and there is no subletting by the partner to the firm, the firm continues to be the lessee, it was held in the case of Raunak Ram And Ors. vs Pishori Singh And Ors.
Rights of Landlords
According to Section 108 of Transfer of Property Act, the landlord or the lessor of the property possesses following rights and liabilities after a lease agreement.
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Duty to disclose latent material defect: If there exists any latent material defect in the property, it must be disclosed by the landlord to the tenant. A latent material defect can be defined as a defect which is of substantial nature and is not apparently visible but the landlord has the knowledge of it. The substantial nature of the defect implies that had the defect already known to the tenant he would either not have accepted the lease or would have taken it on different terms. The defects may be patent, that is, apparent or of unsubstantial nature for the tenant, in such cases the landlord is not obligated to disclose the defect.
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Duty to give possession: Lease is an agreement to transfer the right to possession of a property, thus, the landlord is obligated to deliver the possession of the property to the tenant so that he can use it. The delivery of the possession may be actual or constructive, as may be possible under the circumstances. The tenant is entitled to sue the landlord if he failed from being put in the possession of the property. He may also claim damages in such case. If the property is in possession of a third party, the tenant has the right to sue such third party for getting possession. The tenant may also repudiate the whole lease if he could get the possession of only a part of the property.
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Covenant for quiet enjoyment: Quiet enjoyment refers to the absence of interference or objection. Lease is a transfer of right of enjoyment of a property, thus it is an implied duty of the landlord to ensure the tenant a peaceful enjoyment of this right. This covenant protects the tenant from any disturbance only from the landlord or any person claiming under him. The tenant is not protected from the wrongful acts of a trespasser. Thus, if there is any trespasser, the tenant must take an action on him and not against the landlord. The implied covenant for quiet enjoyment is deemed to be annexed to the leased property. Therefore, if the tenant sub-lets the property, such covenant for quiet enjoyment shall pass on to the transferee.
Rights of Tenants
In the absence of any contract or local usage to the contrary, the rights of a tenant are given under Section 108 of the Transfer of Property Act.
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Right to accretion: Additions made to the property either by human beings or by operation of natural forces are called accretions. If during the continuation of the lease some accretion is made to the property, it is presumed to be a part of the property. The tenant can enjoy such accretions during subsistence of the lease. In both the cases, where the accretion is created by the natural forces or where the tenant makes them himself, they will be considered to have been made for the benefit of the landlord and the tenant can enjoy them only as long as the lease subsists.
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Right to avoid lease on destruction of property: The very object of a lease is to confer the right of enjoyment and use of an immovable property to the tenant. Thus, if an injury to the property renders the enjoyment of property impossible, the tenant has the right to avoid the lease. Where the property has been rendered substantially and permanently unfit for use due to violence, fire, flood, mob or other uncontrollable reasons, the tenant has the right to get the lease terminated before the expiry of the term. The property must be damaged to the extent that it cannot be used for the purpose for which lease was made. If the property is destroyed by the wrongful or neglectful act of the tenant himself, he cannot avoid the lease.
In the case V. Kalpakam Amma vs Muthurama Iyer Muthurkrishna, a site formed the part of the building leased out and such building was totally destroyed. The Kerala High Court held that the relationship of landlord and tenant nevertheless existed and the lease was not avoidable under Section 108(b)(e) of this Act merely because the subject matter of the suit, that is, the building has been destroyed, the lease does not stand terminated. The right conferred under this clause is, however, optional; unless the lessee exercises the right by giving notice to the lessor, the lease is not terminated.
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Right to deduct cost of repairs: Under an express agreement, the landlord may undertake the obligation to make necessary repairs in the tenanted property. His duty to repair the property may arise under some custom or local laws such as Rent Control Act as well. In case the landlord fails to repair the tenanted property despite express covenant or in violation of local law or custom, the tenant has the right to repair the property and deduct its cost from the rent. The tenant has the right to deduct the cost of repairs only if the landlord is bound to repair the property under an express local law or covenant or custom. The landlord’s obligation to repair the premise overrides the tenant’s right for quiet enjoyment and thus the landlord may not use the right for quiet enjoyment as an excuse for not being able to enter the premises to make the repairs.
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Right to deduct outgoings: The payment of the public charges such as municipal tax revenue, etc. is the duty of the landlord. In case there is an anticipated default on the part of the landlord, the tenant may pay such public charges to avoid the sale of the property. Where a tenant makes payment of the public charge in respect of tenanted property, he has the right to deduct the amount from the rents.
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Right to remove fixtures: Fixtures refer to all the things fixed or attached, by the tenant, to the tenanted premises, it includes trees, machinery, and buildings. The tenant has the right to remove the fixtures which were made by him, during continuance of the lease, after the lease is terminated. The tenant cannot be prevented from entering into the premises and remove the fixtures on the ground that his right to enter into the land has been terminated with the lease. However, he must remove the things without disturbing the state of land or the premises.
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Right to remove crops: If there are crops sown by the tenant on the property during the subsistence of the lease, he is entitled to remove them even after the lease is terminated. The tenant or his representatives are entitled to enter into the property after the termination of the lease for removing and collecting the crops growing on the land. This right is exercisable where the leases are of uncertain duration, e.g., leases from year to year. In other classes of leases, the parties themselves may stipulate in respect of removal of crops.
Conclusion
The tenant has the right to remove fixtures they made and crops they sowed on the tenanted premises after lease termination, provided they don’t disturb the land’s state. This applies to fixtures made during the lease and crops in leases of uncertain duration like year-to-year leases.
