Parliament may take up Chandigarh Tenancy Act in December

Tribune News Service

Dushyant Singh Pundir

Chandigarh, November 25

For the regulation of rent and to balance the rights and responsibilities of landlords and tenants, the Chandigarh Tenancy Act is likely to be tabled in the winter session of Parliament, being held from December 7 to 29.

After considering objections and suggestions from public, the UT Administration had in February finalised the Chandigarh Tenancy Act and after getting approval from UT Administrator Banwarilal Purohit, it was sent to the Ministry of Home Affairs, which will table the Act in Parliament for approval.

Rent authority to handle affairs

• A rent authority will be set up to regulate renting out of premises. A rent court and a rent tribunal will be set up to hear appeals for speedy redress of disputes
• Landlord and tenant will have to sign an agreement, to be submitted to the rent authority jointly within two months from the date of agreement
• At present, agreements can be registered at sub-registrar’s office & rent-related disputes are resolved by civil courts, where pendency rate is high
• If tenant fails to vacate premises, landowner is entitled to compensation of double monthly rent for two months and four times the monthly rent thereafter

A senior UT official said the Act was expected to be introduced in the winter session. Once passed, the Centre would notify the Act for adoption by the UT Administration for regulation of rent in the city, he added. In June 2021, the Union Cabinet had approved the Model Tenancy Act, which was to be adopted by the states and UTs.

With the implementation of the Act, a rent authority will be established for regulation of renting out of premises and to balance the interests of the owner and tenant by establishing an adjudication mechanism for speedy dispute redress. A rent court and a rent tribunal will be established to hear appeals.

The rent authority will have exclusive jurisdiction over tenancy issues. All rent agreements will have to be submitted to this authority. At present, these can be registered at the sub-registrar's office.

The authority will adjudicate on all disputes between the landlord and tenant. At present, rent-related disputes are resolved by civil courts, where the pendency rate is high.

After the implementation of the Act, no person can let out or take on rent any premises except by an agreement, which will be informed to the rent authority by the landowner and tenant jointly within a period of two months from the date of agreement. Else, the landowner and tenant will have to separately file the particulars about the tenancy agreement within a month.

No landowner or property manager or tenant, either by himself or through any person, can cut off or withhold any essential supply or service on the premises.

In case a tenant does not vacate the premises after his tenancy has been terminated by an order, notice or as per the agreement, the landowner is entitled to get compensation of double the monthly rent for two months and four times the monthly rent thereafter for the use and occupation of a premises by the tenant.

A tenant will not be evicted during the continuance of the tenancy agreement, except in accordance with provisions of Sub-Section (2).

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