A.P. BUILDINGS (Lease, Rent & Eviction) CONTROL ACT:

 It’s a complete code that deals with substantive as well as procedure law relating to lease, rent & eviction of building in A.P. Another feature of this law is that prior notice for evicting tenant as mandated under S. 106 of Transfer of Property Act is not necessary so as to file a petition u/S.10 of the Act.

Scheme of this Act:  There are 35 Sections. The Act provides following nine definitions. They are:

1) Andhra Area         2) Authorized officer      3) Building        4) Controller      5) Government                                            6) Land lord         7)Prescribed       8) Telangana Area       9)Tenant

(3)’Building’ means any house or hut or part of a house or hut, let or to be let separately for residential or non- residential purposes and includes:

(a) the gardens, grounds, garages and out-houses if any, appurtenant to such house, hut or part of such house or hut and let or to be let along with such house or hut or part of such house or hut;

(b) any furniture supplied or any fittings affixed by the landlord for use in such house or hut or part of a house or hut, but does not include a room in a hotel or boarding house;

(4)’Controller’ means any person not below the rank of a Tahsildar appointed by the Government to perform the functions of a Controller under this Act;

Comment: As per S.2(6) of the Act  Judges (Jr.Civil Judge) is appointed to perform the functions of the Controllers, in their respective jurisdictions. They have powers to deal with all Sections except the following: S.3, 18, and S.4,5 and 6 of the Act in relation to the Buildings allotted by the authorized officers under S. 3 (6) of the Act.  As to the function to be performed under S. 18 of the Act, Deputy Secretary to Government (GAD) is appointed as Controller in respect of twin cities of Hyderabad and Secunderabad by way of issuing G.O.Ms.No.528 dt.26.3.1966.

The Judges who are acting as Rent Controllers got nothing to do with the cases arose in respect of the provisions of either S. 3 or 18 of the Act.

(6)’Landlord’ means the owner of a building and includes a person who is receiving or is entitled to receive the rent of a building, whether on his own account or on behalf of another person or on behalf of himself and others or as an agent, trustee, executor, administrator, receiver or guardian or who would so receive the rent or be entitled to receive the rent, if the building were let to a tenant.

Explanation: – A tenant who sub-lets a building shall be deemed to be a landlord within the meaning of this Act in relation to the sub-tenant;

 (ix)‘Tenant’ means any person by whom or on whose account rent is payable for a building and includes the surviving spouse, or any son or daughter, of a deceased tenant who had been living with the tenant in the building as a member of tenant’s family up to the death of the tenant and a person continuing in possession after the termination of the tenancy in his favour, but does not include a person placed in occupation of a building, by its tenant or a person to whom the collection of rents or fees in a public market, cart-stand or slaughter-house or of rents for shops has been farmed out or leased by a local authority.

S.3 talks about Notice of Vacancy: The Land lord shall within ten days after the building becomes vacant to the authorized officer in this behalf.  It is irrelevant how such vacancy arises:

a) by his ceasing to occupy it,

b) by the termination of a tenancy,

c) eviction of the tenant,

d) release from requisition.

Fair Rent: Sections 4, 5, 6 and 7 of the Act, all form part of a scheme regarding fixation of fair rent.  S. 4 deals with fixation of fair rent.  It must be noted that fair rent once fixed is final and exceptions are dealt under S. 5 and 6.

S.4 Determinaiton of fair rent: The controller shall on application by the tenant or landlord of a building fix the fair rent for such building after holding such enquiry as the controller thinks fit.  This S. gives certain guide lines for fixing the fair rent both for residential and nonresidential purposes

 As per S.5 fair rent once fixed can’t be increased except there are some improvements are carried at the request of tenant by landlord by incurring expense.  Rent can also be decrease if there is diminish of value or utility.

The dispute between landlord and tenant in regard to increase or decrease of rent shall be decided by controller.

As per S.6 if there is increase of taxes or cess of any building by any local authority land lord is entitled to claim half of such excess from the tenant in addition to the rent payable for the building.

 7 gives a mandate that landlord cannot claim or receive anything in excess of agreed rent or fair rent fixed, except for one month’s agreed rent or fair rent fixed as the case may be, as advance. It also provides that any sum paid in excess of such amount either in consideration of the grant, continued or renewal of tenancy of the building, after commencement of this Act, shall be refunded by the landlord to the person by whom it was paid or at the option of such person it shall otherwise be adjusted by the landlord. Even if the tenant fails to make any specific request, the landlord shall give automatic adjustment of such amount towards arrears of rent.

Permission to deposit rents to the credit of Rent Controller(S.8 &9):

These two Sections deal with the cases where the tenant can seek for permission to deposit rental amounts to the credit of the Rent Controller.

8 of the Act gives rise to a right to the tenant to insist for issuance of receipt for rent or advance paid by him to the landlord.

Further it gives a right to him to file an application seeking for permission to deposit rents to the credit of the Rent Controller, after following the procedure laid down in this Section in case the landlord refusing to receive rents tendered to him (tenant).

In every case where landlord refuses to receive rents, it is not mandatory for the tenant to follow the procedure laid down in the Section scrupulously. But, if he intends to invoke S.8 (5) of the Act and file a rent control case, he shall scrupulously follow the said procedure.

S.8 lays down Procedure of deposit rent in the event of refusal by land lord:

First step:  Tenant if the rent becomes due shall by notice in writing request the landlord within ten days furnish the bank account into which the rent may be deposited by the tenant to the credit of the landlord.  That bank must situate in the city where building is situated or if there is bank within three miles from the village.

If the landlord specifies a bank, tenant shall deposit rents into the said bank and shall continue to do so in respect of future rents whenever they become due.

Second step:   If landlord does not specify the bank, tenant shall remit the rent to the landlord by money order, after deducting the money order commission and shall continue to remit the rent so, for the subsequent period in respect of the building, in the same manner until the landlord signifies by written notice to the tenant, his willingness to accept the rent or specifies a bank into which the rents can be deposited.

Third step:  If the landlord refuses to receive the rent remitted by money order, the tenant may deposit rent before the Rent Controller seeking permission from the Rent Controller. The permission can be sought after deposit is made. The amount so deposited may be withdrawn by the person, who is held by the Rent Controller, as entitled to receive the same, on application made by such person to the Rent Controller.

It is the duty of the tenant in order to ensure that he would not be branded as willful defaulter shall deposit the rent in the manner prescribed by law.

S.9: If the address of the landlord or his authorized agent is not known to the tenant, he can file rent case invoking this provision of law and deposit rents to the credit of the Rent Controller with permission, until he can secure such address.    Further, in case of the tenant entertaining a bonafide doubt as to the person who is entitled to receive rents due to existence of any dispute or otherwise, he can invoke the provisions of S. 9 and file a rent case seeking for permission to deposit rents to the credit of the Rent Controller.

Until the bonafide doubt entertained by the tenant, as to, who is the person who is entitled to receive rents is removed or the dispute regarding the same is settled by the decision of a competent court or by settlement between the parties, the tenant can be permitted to deposit rents to the credit of Rent Controller.

If it is found that there are no bonafides in the doubt entertained by the tenant, the Rent Controller shall forthwith order payment of the amount deposited, to the landlord and if there is dispute as to who is to receive such amount, the person who is declared as entitled to receive the same, after removal of the doubt regarding the same either by way of a decision from competent court or a settlement between the parties, he should be permitted to withdraw the rents deposited to the credit of the Rent Controller.

Rent Case: For a rent case to be filed there shall be a building, landlord and tenant, apart from the Rent Controller and there shall be lease. Lease is not defined in this Act. So with this regard S. 105 of Transfer of Property Act is to be resorted to.  In connection with the lease of the building, rent case can be filed before Rent Controller either by landlord or by tenant.

JURISDICTION (S.1 & 32):

Territorial Rights:   S.1 of the Act deals with territorial application of this Act. It is applicable to all Municipal Corporations and Municipalities in the State of A.P. and also to certain Gram Panchayats, as well.  Tenancy rights are of suits of civil nature. As Rent control occupies the filed civil court jurisdiction is barred in view of S.9 CPC.  Otherwise, previously this jurisdiction is in the hands of civil court only.

S.32:  It says this law not applies to following building:

1) Any building belonging to either State Government or Central Government or Cantonment Board or any local authority.

2) If 15 years time is not lapsed from the date of completion of the construction of the building, Rent Controller has no jurisdiction to entertain a case relating to the said building. The same is the case with the date of substantial renovation of the said building. Rent Controller has no jurisdiction to entertain a case relating to the said building.  Cases regarding such buildings are to be dealt with only by Civil Courts.

3) Any building the rent of which exceeds Rs.3500/- per month in the areas covered by Municipal Corporations in the State and Rs.2000/- in the other areas, this Act got no application.  That means, maximum rent limit or outer limit, is fixed for entertaining Rent Control Cases.

Filing of Rent Control cases, filing of documents and disposal of rent control cases: The relevant Sections and rules which provide for the requirements for filing a rent control case, summoning the parties, filing of documents, summoning of witnesses and documents, enquiry, disposal and execution of rent control case are dealt under Rule 7 of the rules framed under this Act.  They talk about the following:

S. Summons and Notices: 25 and Rule 20 deals with issuance of summons either to the third party witnesses to give evidence before the court or to produce documents and to give evidence regarding the said document as the case may be.

Resjudicata:   provides that decisions, which have been become final, cannot be reopened.  This provision is almost akin to S. 11 CPC (Resjudicata)

As per  orders are to be pronounced by the Controller, appellate and revisional authority in open court after hearing the matter.

 21 provide authority to award costs while rendering orders. It is also an appealable order.

 Appeal: The persons aggrieved by the orders of the Rent Controllers can prefer appeal challenging the said order invoking S. 20 of the Act.

  Revision:      The parties aggrieved by the Judgments of the appellate authority can challenge the same before Hon’ble High Court of A.P. by way of filing revision.  Further, the orders passed in execution under S. 15 of the Act by the Rent Controller are also revisable orders only, but not appealable orders.

Transfer of Cases:  Rule 9 empowers the appellate authority to transfer the case from the file of one Controller to that of other Controller within his jurisdiction. The Controller himself can seek for transfer if he is personally interested in any case pending before him.

Execution: S.15 provides authority to the Rent Controller to execute the orders passed by him.

Rule 23: provides for the mode of filing of execution petitions.  It is akin to several of the provisions of order 21 CPC. It deals with the way in which the Rent Controller has to order for assistance in case of premises being found under lock and key and when there is resistance for execution of warrant etc. and also for filing claim petitions by third parties if they are in possession of the property etc.

Limitation for execution of orders passed by the Rent Controller is specifically prescribed in Rule 23. Six months from the date of order is the time stipulated for execution of the Rent Controllers order, as per Rule 23(1).  But there is a proviso to Rule 23(1) prescribing, that an application filed after the specified period also can be admitted, if the applicant satisfies the Controller that he has sufficient cause for not preferring the execution application within the prescribed period.

 Claim Petition:   Both the decree holder as well as the third party/claim petitioner can invoke Rule 23(7) for removal of obstruction and for making out third parties claim, as the case may be.

Eviction of Tenant:  S.s 10,12 and 13 of the Act deal with eviction of tenants. Unless, a case fall under any of the grounds provided under these S.s, landlord cannot seek for eviction of the tenant from the building.

1) Denial of title of landlord and plea of permanent tenancy:

2) Willful default in payment of rents

3) If tenant sub-leases the property contrary to agreement or there is a change of user without written consent of the landlord.          

4)  If tenant commits acts of waste, which are likely to impair materially, the value and utility of the building, it is a ground for eviction.

5) If tenant is guilty of such acts and conduct which is nuisance to the occupiers of other portions in the same building or buildings in the neighbourhood.

6) If tenant secured alternative building or ceased to occupy the tenanted building for a continuous period of four months without reasonable cause.

7)   Bonafide personal requirement. Ex: In case of a premises being meant for garage and the landlord requiring the same for such use.

8)  A purchaser of premises which is under lease requires the premises for his bonafide personal use, he can seek for eviction of tenant but he can do so only after expiry of three months from the date on which the sale deed registered in his favour as proviso to S. 10(3)(a) of the Act.    Once landlord obtains possession of a residential building invoking this provision he cannot seek for possession of another residential building again invoking this section. The Same is the case with a non-residential building also.

If the landlord of the building is religious, charitable educational or other public institution and the building is required for the use of the said institution, a petition can be filed by the institution subject to the provisions of S. 10(3) (b) of the Act.

9)  As per S. 10(3) (c ) of the Act, if landlord is in occupation of only a part of a building whether residential or non-residential, may notwithstanding anything contained in S. 10(3)(a) of the Act, can apply for an order directing the tenant occupying whole or any portion of remaining part of the building to put the landlord in possession thereof, if he requires additional accommodation either for residential purpose or for the purpose of business which is carrying on as the case may be.  But he can do so only after the expiry of lease period if it is specified in the lease agreement as per S. 10(3)(d) of the Act.

10)   Whereas S. 10(3)(e) of the Act specifies that in case of the Rent Controller being satisfied that the personal requirement pleaded by the landlord is bonafide he is to order the tenant to put the landlord in possession of the building specifying the date for doing so and the time granted for the same is to be provided not exceeding three months in aggregate.   Further, it is provided that in case of the application under S. 10(3)(c), the Rent Controller is to reject the application if he is satisfied that the hardship which may cause to the tenant by granting eviction to the landlord will outweigh the advantage to the landlord.  This proviso applies only to the cases where eviction is sought for invoking S. 10(3)(c ) but not the other clauses.

Employees of essential services:  There are certain exemptions given in S. 10(4), to certain category of people from eviction, invoking S. 10(3)   of the Act. If tenant is engaged in an Employment or class of employment notified by the Government as an essential service unless, landlord himself engaged in any such service the tenant cannot be evicted under S. 10(3) of the Act.  Judges of High Court, all Central and State Government employees, employees of Indian Airlines etc. are notified as members of essential services.  Further, if the building is being used or has been left for use of an Educational Institution recognized by the Government or any authority empowered by them in his behalf, the tenant cannot be evicted from the said building, so long as such recognition continues, by invoking S. 10(3) of the Act.

 Restoration of possession of building to the tenant:  S. 10 (5) is giving a right to the tenant to seek for restoration of possession of the building from which he is evicted on the ground of personal requirement pleaded by the landlord under certain circumstances.  If landlord fails to occupy the building for the purpose specified in the order within one month after obtaining possession, or having occupied it, vacates it without reasonable cause, within six months of such date, the evicted tenant, can seek for restoration of possession of the property to him, by making an application, within one month from the date on which, the right to make such application, accrued to him.

1. 10(6) provides that if the Controller is satisfied that any application filed by the landlord or tenant is frivolous or vexatious he can direct that compensation not exceeding Rs.50/- to be paid to the adverse party.
2. 10(7) provides that in case of the Controller rejecting the application filed under sub-S. 2 or sub-S. 3 of S. 10 the tenancy shall be deemed to be continued on the same terms and conditions as before.
3. 10(8) provides that a person who is receiving or is entitled to receive rent for a building as an agent of the landlord can file eviction petition only with the previous written consent of the landlord, not otherwise.

Right to recovery of immediate possession of tenanted premises: S.s 10(a), 10(b) and 10(c) are the newly inserted provisions into this Act, by Act 17/2005, where rights are created respectively for retired person from armed force who is the landlord and the members of his family, retired employee of State or Central Government who is a landlord and the members of his family and a widow of the landlord, to seek for recovery of immediate possession of the premises under the occupation of the tenant.

Recovery of possession of the building by landlord for effecting repairs, alterations or additions or for reconstruction:    In case of the landlord bonafidely intending to effect repairs, alterations or additions to the existing building and the same are required to be carried on and cannot be carried on, without the building being vacated, he can seek for eviction of the tenant invoking S. 12(1)(a) of the Act.   If the landlord intends to demolish the existing structure consisting of not more than two floors and the said building is bonafidely required for demolition for the purpose of erecting new building on the site of the building, he can invoke S. 12(1)(b) of the Act.  But no order of recovery of possession under this Section shall be passed unless the landlord gives an undertaking, that on completion of the repairs, alterations or additions or the new building, the same will be offered to the tenant who delivered possession of the building in pursuance of the order under sub-s(1) of this Section for his occupation, before the expiry of such period, as may be specified by the Rent Controller in this regard.  This is a mandatory provision made in S. 12 (2) of the Act.

1. 13 deals with recovery of possession of a building by the landlord for effecting repairs, alterations or additions or for reconstruction of the building, in respect of which Government shall be deemed to be the tenant. In all other respects, this S. is similar to the provisions of S. 12 discussed above. Except for the provisions of S. 10, 12 and 13 of the Act, under no other provision, landlord can seek for eviction of tenant, under this Act.

S.14:  Amenities:  Landlord shall not interfere with amenities enjoyed by the tenant, without just or sufficient cause. The amenities generally be enjoyed by the tenant in a lease hold premises are water supply, electric energy supply, passage, stair cases, light, lavatories, lifts and conservancy or sanitary services. If the landlord unjustly interferes with these amenities, tenant can make an application before the Rent Controller seeking for restoration of the same.  During the pendency of such case, tenant can file interlocutory application seeking for an interim order of restoration of amenity, without even notice to the landlord.  If the amenities enjoyed by the tenant are stopped by any person other than the landlord, by reason of the landlords failure to pay taxes or other charges tenant may pay such taxes or other charges, and have the amenities restored and can deduct the said amount from the tenant payable by him to the landlord, as per S. 14(5).   S. 14(6) prescribes authority to the Controller to award compensation in his discretion not exceeding Rs.50/- to be paid to the landlord by the tenant vice-versa, if the litigation launched are frivolous or vexatious or the amenities are withheld, frivolously and vexatiously, as the case may be.

Repairs to the Building:   S. 19 deals with failure by the landlord to make necessary repairs. In case of the landlord failing to effect repairs to the leasehold premises within reasonable time after notice is given by the tenant, tenant can approach the Rent Controller seeking for direction to the landlord to effect the repairs invoking S. 19 of this Act.   In case of Rent Controller giving a finding that the repairs are to be effected by the landlord, a direction can be given to the landlord to do so.  As per this provision, if the landlord fails to effect the repairs, inspite of the direction given him to do so, tenant can be given liberty to get the said repairs effected at his expense and deduct the amount spent for the rents payable by him. But such expenses shall not exceed in any one year  1/12^th of the rent payable in respect of the building for that year from the rent payable.    Just because it is provided in S. 19 that the tenant can proceed with effecting repairs to the building and can deduct the expenses incurred by him from out of the rents payable to the landlord, he cannot resort to do so on his own without filing of application invoking S. 19 and securing permission from the Rent Controller in this regard.

 A clear distinction is to be drawn in between the right to recover arrears and the right to lay an action for eviction on the ground of wilful default.  The former is governed by the common law and the latter is obviously within the realm of Rent Legislation.

No limitation is prescribed for filing eviction petitions.  There is nothing in S. 11 to indicate or suggest that a landlord will not be entitled to ask for deposit of rent due to him beyond a period of three years.  Article 137 of Limitation Act is not applicable and it cannot be claimed that rent beyond the period of three years is not legally recoverable.

Deposit and withdrawal of Rental amounts in pursuance of orders rendered under S. 8, 9 and 11 of the Act:           The above discussed provisions of Rent Control Act provide for certain instances requiring deposit of rents to the credit of the Rent Controller by the tenant.  They are, the deposits of rents permitted under S. 8, 9 and 11 of the Act. These S.s themselves provide for the permission for the person, who is entitled to receive the said amounts, to withdraw the same also.

Penal Provisions:  Contravention of S. 14(4) and S. 21 punishable conduct. Some of the clauses which the Rent Controller frequently comes across while dealing with Rent Control Cases.

“Rent Controller’s Court is not a civil Court and application of the provisions of CPC is not automatic and is only limited.”  

A.P. BUILDINGS (Lease, Rent & Eviction) CONTROL ACT: