01. DRC 1-13

Delhi Law Academy

                                          Delhi  Rent  Control  Act  1958

Section 1

  • This Act may be called
    • the Delhi Rent Control Act 1958

Extent

  • It extends to
    • areas within limits of New Delhi Municipal Committee
    • areas within limits of Delhi Cantonment Board
    • such urban areas within Municipal Corporation of Delhi limits
      • as are specified in the First Schedule

 

Section  2                    Definitions

(b)

  • “Controller” means
    • a Controller appointed u/s 35(1)
    • and includes an Additional Controller

(c)

  • “Fair rate” means
    • fair rate fixed u/s 31
    • and includes the rate revised u/s 32

(d)

  • “Hotel or lodging house” means
    • a building or part of a building
    • where lodging with or without board or other services
    • is provided for a monetary consideration

(e)

  • “Landlord” means
    • a person who is receiving or is entitled to receive
  • the rent of any premises
    • whether on his own account
    • or on account of or on behalf of any other person
    • or for benefit of any other person

(i)

  • “premises” means
    • any building which is, or is intended to be, let separately
    • for use as a residence or for commercial use or for any other purpose
  • and includes
  • garden, grounds and outhouses, if any
    • appertaining to such building and
  • any furniture supplied by the landlord
    • for use in such building
  • but does not include
    • a room in a hotel or lodging house

(k)

  • “standard rent” means
    • the standard rent referred to in section 6
    • or where standard rent has been increased u/s 7: such increased rent

(l)

  • “tenant” means
    • any person by whom or on whose account
    • rent of any premises is, or would be, payable
  • and includes

(i)

  • a sub-tenant

(ii)

  • any person continuing in possession after termination of his tenancy

(iii)

  • in the event of death of the person
    • continuing in possession after termination of his tenancy:
  • aforesaid person’s
    • spouse
    • son or daughter or both
    • parents
    • daughter-in-law
      • being widow of his pre-deceased son
      • ordinarily living in the premises with such person
    • but does not include

(A)

  • any person against whom
    • an order or decree for eviction has been made
  • except where such decree or order for eviction
    • is liable to be re-opened under Amendment Act 1976

(B)

  • any person
    • to whom a license has been granted

 

Explanation I               Order of succession

  • The order of succession
    • in the event of death of the person
    • continuing in possession after termination of his tenancy
    • shall be as follows:
  • firstly
    • his surviving spouse
  • secondly
    • his son or daughter or both
      • if there is no surviving spouse
      • or if the surviving spouse did not ordinarily live with the deceased person
    • thirdly
      • his parents
        • if there is no surviving spouse, son or daughter
        • or if any of them did not ordinarily live in the premises
      • fourthly
        • his widowed daughter-in-law
          • if there is no surviving spouse, son, daughter or parents
          • or if they did not ordinarily live in the premises

Explanation II

  • If the person who acquires by succession
    • the right to continue in possession after termination of tenancy
    • was not financially dependent on the deceased person
  • such successor shall acquire such right
    • for a limited period of one year
  • and on the expiry of that period
    • or on his death, whichever is earlier
  • the right of such successor
    • to continue in possession after termination of tenancy
    • shall become extinguished

Explanation III

  • The right of every successor referred to in Explanation I
    • to continue in possession after termination of tenancy
  • shall be personal to him and
    • shall not, on death of such successor, devolve on any of his heirs

 

Section 3                     Non-applicability

This Act shall not apply

(a)

  • to any premises belonging to Govt
    • or to certain premises

(b)

  • to any tenancy or other like relationship
    • created by a grant from Govt
    • in respect of premises taken on lease, or requisitioned, by Govt

Proviso

  • Where any premises belonging to Govt
    • have been lawfully let by any person
    • by virtue of an agreement with Govt or otherwise
  • then
    • notwithstanding any judgment, decree or order of any court or authority
  • provisions of this Act shall apply to such tenancy

 

Section 4 (1)                Rent in excess of standard rent not recoverable

Notwithstanding any agreement to the contrary:

  • no tenant shall be liable to pay to his landlord
    • for occupation of any premises
    • any amount in excess of the standard rent
  • unless
    • such amount is a lawful increase of the standard rent
    • in accordance with this Act

 

Section 5 (1)                Unlawful charges not to be claimed or received

Subject to this Act:

  • No person shall claim or receive
    • any rent in excess of the standard rent
    • notwithstanding any agreement to the contrary

 

Section 5 (2)

  • No person shall
    • in consideration of grant, renewal or continuance of a tenancy or sub-tenancy

(a)

  • receive payment of any sum
    • as premium or pugree or
  • receive any consideration whatsoever, in cash or in kind
    • in addition to the rent

(b)

  • except with previous permission of Controller:
  • claim or receive payment of any sum
    • exceeding one month’s rent of such premises
    • as rent in advance

 

Section 6(1)                 Standard rent

  • “Standard rent” in relation to any premises means

(A)       In case of residential premises:

 

  • Where such premises have been let out
    • on or after 2nd June 1944..

(a)

  • Where rent of premises has been fixed
    • under Rent Control Acts of 1947 or 1952:
  • If such rent per annum does not exceed 1200 rupees
    • the rent so fixed
  • If such rent per annum exceeds 1200 rupees
    • rent so fixed together with ten percent of such rent

(b)

  • In any other case:
  • rent calculated on the basis of
  • 10% per annum of the aggregate amount of
    • cost of construction and
    • market price of the land comprised in the premises on the date of commencement of construction

 

(B)       In case of other than residential premises:

 

  • Where premises have been let out
    • on or after 2nd June 1944:

(a)

  • Where rent of premises has been fixed
    • under Rent Control Acts of 1947 or 1952:
  • If such rent per annum does not exceed 1200 rupees
    • the rent so fixed
  • If such rent per annum exceeds 1200 rupees
    • the rent so fixed together with 15% of such rent

(b)

  • In any other case:
  • rent calculated on the basis of
  • 10% per annum of the aggregate amount of
    • cost of construction and
    • market price of the land comprised in the premises on date of commencement of construction

 

Section 6(2)

Notwithstanding anything in sub-section (1):

(b)

  • In case of any premises, whether residential or not
    • constructed on or after 9th June 1955
    • but before 1.12.1988:
  • annual rent calculated with reference to
    • the rent agreed upon between landlord and tenant
    • when such premises were first let out
  • shall be deemed to be the standard rent
    • for a period of five years from the date of such letting out

(c)

  • In case of any premises, whether residential or not
    • constructed on or after 01.12.1988
    • and to which this Act is applicable by virtue of section 3(d)
  • rent calculated on the basis of
  • 10% per annum of the aggregate amount of
    • actual cost of construction
    • and market price of the land comprised in the premises on the date of commencement of construction
  • shall be deemed to be the standard rent

 

Section 6(3)

For purposes of this section:

  • residential premises include
    • premises let out for the purpose of
    • a public hospital, an educational institution, a public library, a reading room or an orphanage

 

Section 6A                   Revision of rent

Notwithstanding anything in this Act:

  • Standard rent
    • may be increased by 10% every three years
  • Where no standard rent is fixed under this Act
    • in respect of any premises
  • rent agreed upon between the landlord and the tenant
    • may be increased by 10% every three years
    • Note: This section was inserted w.e.f. 1.12.1988

 

Section 8 (1)                Notice of increase of rent

  • Where a landlord wishes to increase rent
    • he shall give the tenant notice
    • of his intention to make the increase
  • It shall be due and recoverable
    • only so far as such increase is lawful under this Act
    • and only in respect of the period of tenancy
      • after expiry of 30 days from the date on which notice is given

 

Section 8(2)

  • Every such notice shall be in writing
    • signed by or on behalf of the landlord
    • and given as provided in section 106 of the Transfer of Property Act

 

Section 9 (1)                Controller to fix standard rent

  • Controller shall, on an application
    • either by the landlord or by the tenant
  • fix in respect of any premises
    • the standard rent referred to in section 6
    • the increase, if any, referred to in section7

 

Section 9(2)

  • In fixing standard rent of any premises
    • or the lawful increase thereof
  • Controller shall fix an amount
    • which appears to him to be reasonable
    • having regard to sections 6 or 7 and circumstances of the case

 

Section 9 (3)

  • In fixing standard rent of any premises
    • part of which has been lawfully sub-let
  • Controller may also fix standard rent
    • of the part sub-let

 

Section 9 (4)

  • Where it is not possible
    • to determine standard rent of any premises on principles set forth u/s 6
  • Controller may fix such rent as would be reasonable
  • having regard
    • to the situation, locality and condition of the premises
      • and the amenities provided therein
    • and also to the standard rent payable in respect of similar or nearly similar premises in the locality

 

Section 9 (5)

  • Standard rent shall in all cases
    • be fixed for a tenancy of twelve months

Where any premises are let for less than 12 months:

  • standard rent for such tenancy
    • shall bear the same proportion to the annual standard rent
    • as the period of tenancy bears to twelve months

 

Section 9 (6)

In fixing standard rent of any premises:

  • Controller shall fix the standard rent thereof
    • in an unfurnished state
  • and may also determine an additional charge
    • to be payable on account of any fittings or furniture supplied by the landlord
  • and it shall be lawful for the landlord
    • to recover such additional charge from the tenant

 

Section 9 (7)

In fixing standard rent of any premises:

  • Controller shall specify a date
    • from which the standard rent so fixed
    • shall be deemed to have effect
  • But, in no case the date so specified
    • shall be earlier than one year
    • prior of the date of filing of application for fixation of standard rent