Sc judgement of 2011 - model landlord tenant agreement
vinay joshi
(Querist) 13 May 2018
This query is : Resolved
Can the model landlord tenant agreement drafted by Supreme Court in the 2011 Saharanpur judgement case be cited in disputes relating to fixing of all cases where tenants are paying less than the market rent and are the courts accepting this? Can the landlord show this case to tenant to pay rent at market rate, where he is paying less?
Ms.Usha Kapoor
(Expert) 14 May 2018
Yes! the guideline4s laid down by the supreme court are being followed in landlord tenant disputes where tenants are paying low rent and they are forced to pay market rent as per guidelines of the apex court as per this decision
http://www.legalblog.in/2011/05/guidelines-to-reduce-landlord-tenant.html.
Justice Deepak Varma
The Supreme Court in Mohammad Ahmad v. Atma Ram Chauhan & Ors. has laid down illustrative guidelines which aim to reduce landlord - tenant disputes and to avoid unnecessary litigation arising therefrom. Justice Deepak Varma, speaking for the bench has observed as under;
21. According to our considered view majority of these cases are filed because landlords do not get reasonable rent akin to market rent, then on one ground or the other litigation is initiated. So before saying omega, we deem it our duty and obligation to fix some guidelines and norms for such type of litigation, so as to minimise landlord-tenant litigation at all levels. These are as follows:-
SC Judgment in the case of Saharanpur laid down guidelines and also Model Landlord and Tenancy Agreement for landlords and tenants. .Please read below those guidelines.
21. According to our considered view majority of these cases are filed because landlords do not get reasonable rent akin to market rent, then on one ground or the other litigation is initiated. So before saying omega, we deem it our duty and obligation to fix some guidelines and norms for such type of litigation, so as to minimize landlord-tenant litigation at all levels. These are as follows:-
(i) The tenant must enhance the rent according to the terms of the agreement or C.A. No.__@ SLP(C)No. 6319 of 2007 at least by ten percent, after every three years and enhanced rent should then be made payable to the landlord. If the rent is too low (in comparison to market rent), having been fixed almost 20 to 25 years back then the present market rate should be worked out either on the basis of valuation report or reliable estimates of building rentals in the surrounding areas, let out on rent recently.
(ii) Apart from the rental, property tax, water tax, maintenance charges, electricity charges for the actual consumption of the tenanted premises and for common area shall be payable by the tenant only so that the landlord gets the actual rent out of which nothing would be deductible. In case there is enhancement in property tax, water tax or maintenance C.A. No.__@ SLP(C)No. 6319 of 2007 charges, electricity charges then the same shall also be borne by the tenant only.
(iii) The usual maintenance of the premises, except major repairs would be carried out by the tenant only and the same would not be reimbursable by the landlord.
(iv)But if any major repairs are required to be carried out then in that case only after obtaining permission from the landlord in writing, the same shall be carried out and modalities with regard to adjustment of the amount spent thereon, would have to be worked out between the parties.
(v) If present and prevalent market rent assessed and fixed between the parties is paid by the tenant then landlord shall not be entitled to bring C.A. No.__@ SLP(C)No. 6319 of 2007 any action for his eviction against such a tenant at least for a period of 5 years.
Thus for a period of 5 years the tenant shall enjoy immunity from being evicted from the premises.
(vi) The parties shall be at liberty to get the rental fixed by the official valuer or by any other agency, having expertise in the matter.
(vii) The rent so fixed should be just, proper and adequate, keeping in mind, location, type of construction, accessibility with the main road, parking space facilities available therein etc. Care ought to be taken that it does not end up being a bonanza for the landlord.
22. These are some of the illustrative guidelines and norms but not exhaustive, which C.A. No.__@ SLP(C)No. 6319 of 2007 can be worked out between landlord and tenant so as to avoid unnecessary litigation in Court.
23. As mentioned hereinabove, the aforesaid appeal is dismissed with costs throughout.
24. Counsels' fee Rs. 10,000/-.
...................
..J.
[DALVEER BHANDARI] ..................
..J.
[DEEPAK VERMA] New Delhi May 13, 2011
Guest
(Expert) 14 May 2018
Ms. Usha Kapoor has stated that "the guidelines laid down by the Supreme Court are being followed in the landlord tenant disputes", but she has not clarified, who is following such guidelines, whether the landlord, tenant or someone else.
The querist has asked "whether the landlord can show this case to the tenant to pay rent at market rate, where he is paying less." But Ms. Usha Kapoor cannot touch that point in her advice. Can she clarify, whether merely by showing the decision, would the tenant be compelled to pay market rent?
Guest
(Expert) 14 May 2018
There is no scope of automatic application of the judgment in every case, other than the judgment case. You cannot compel the tenant to pay market rent merely by showing the judgment of the SC in someone else case. If rent can't be enhanced by mutual consent and understanding, you will have to get decision of the court in your favour on merits of the case.
P. Venu
(Expert) 14 May 2018
You have not posted the any facts or the relevant problem, if any.
Ms.Usha Kapoor
(Expert) 15 May 2018
In my opening paragraph I said the guidelines are being followed by landlords and tenants. the Judgment effect is fast catching up. Let Parliament make a law in this context. to give more teeth to the judgment. until then What's Supreme court says is law of the land.
Guest
(Expert) 15 May 2018
@ Ms. Usha Kapoor,
You always make vague and irrelevant statements without any proof in support of your statement. Can you quote statistics year after year after the date of judgment as to how many tenants have catched up fast to comply with the SC guidelines for paying market rent to the landlords, as you said, "the judgment is effect is fast catching up."
In that judgment there is no direction for the Parliament to make a law as per guidelines, so how you can expect the Parliament to make any law, as per the guidelines?
Dr J C Vashista
(Expert) 16 May 2018
I fully agree with expert advise of Sh. PC Dhingra, now it is your call to proceed.
Issue a legal notice through a local lawyer calling the tenant for market rent of demised premises. If the tenant do not accept or pay or unwilling to pay file a suit and use aforesaid judgment in arguments.
