The Assam Urban Areas Rent Control Act, 1972- Important Provisions Part II


PROTECTION AGAINST ARBITRARY EJECTION under Section 5:


THE ASSAM URBAN AREAS RENT CONTROL ACT, 1972

The general rule is that so long as the tenant pays standard rent, and performs the conditions of tenancy, he cannot be ejected,


But he may be ejected under the following special circumstances:-


(a) Where the tenant contravenes the provisions of clauses (m), (p), (o) of Section 108 of Transfer of Property Act.


According to these clauses, the lessee is bound to keep the land in good condition, as it was when the tenant took possession; he must not use the property for a purpose other than that for which it was leased, and he must not erect permanent structure without lessor’s consent.


(b) Where the tenant is guilty of causing nuisance or annoyance to others/neighbours, or


(c) Where the house is bona fide required by the landlord for repair or rebuilding or occupation of himself/ or any person for whose benefit the house is held, or for any other cause accepted by the court,


(d) Where the tenant sub-lets or transfers the house or a part without written permission of the landlord; or


(e) Where the tenant has not paid rent due, within 14 days of the rent falling due; or


(f) Where the tenant has built, acquired or been allocated suitable residence under Section 5(1).


It is for the landlord to satisfy the conditions specified in various clauses of the provision in Section 5(1). (Upendra Chandra v. Subhashini Deb) (FCI v. Bhagwan Shree)

GROUNDS OF ENHANCEMENT OF RENT & LIMITATIONS TO SUCH ENHANCEMENT


The standard rent is calculated based on the market value of the land and estimated cost of construction at the time of fixation of fair rent together with Municipal Tax and Urban Immovable Property Tax, payable in respect of the house, and it, therefore, does not connote a fixity of rent but is liable to alteration after the first fixation of the standard rent with the increase in the value of land and estimated cost of construction of the house.


The landlord can claim for rent at an increased rate in the following circumstances:-


(i) Under Section 5(1), an increase of rent or its revision can only be claimed after 5 years of continuous occupation of the house by the tenant after the last fixation of the standard rent.


A subsequent revision of rent can be claimed after the lapse of every five years of the last revision of standard rent. The increase in the rent will be subject to the following conditions:-

(a) Under Section 5 (1 )(a) stated that the rent cannot be increased by more than 50% of the proceeding standard rent fixed by the court; and

(b) Under Section 5 (1) (b) stated that the increase in the rent will be permissible if the market value of the land and the estimated cost of construction has increased by more than 35% of their value as of the date of the last fixation of fair rent, will be allowed to the extent of 1/12th of 7 ½% of such increase in the market value of the land and cost of construction.


(ii) Under Section 5(2) it stated that, if any improvement, addition or alteration has been effected to the house at the cost of the landlord, after the fixation of the standard rent, then the monthly rent can be increased to the extent of 1/12th of 7 ½% of such improvement, addition or alteration, and such increase will be effective from the date, when the addition, alteration or improvement was effected stated under Section 3(3).


(iii) If after the fixation of the standard rent, there is variation in the Municipal and Urban Immovable Property Tax, the standard rent will be liable to fix again, taking into account the variations of these taxes.


PROVISIONS OF RENT UNDER THE ACT and IMPORTANT TERMS


The term was not discussed under this act, or the old act and hence the term ‘rent’ seems to have been used in its ordinary dictionary meaning.


The term is comprehensive enough to include all payments made by the tenant to a landlord, for the use and occupation, not only of the building and its appurtenances but also of furnishing, electric installations and other amenities as agreed to by the parties, to be provided by and at the cost of the landlord.


THE ASSAM URBAN AREAS RENT CONTROL ACT, 1972

In a wider sense, the term ‘RENT’ implies the payment made for the use of land or buildings, and this includes the payment by a license in respect of the use and occupation of any land or building. In its narrow sense, it means payment by a tenant to a landlord for property demised to him. (Konchada Ramamurthy v. Gopinath)

  • PUCCA STRUCTURE under Section 2(d)


A pucca structure for the act means, a structure built with the following materials:-


(i) Commented or wooden floor

(ii) Iron, brick or concrete posts

(iv) Roof of reinforced concrete posts, and/or, of galvanized iron, aluminium or asbestos sheet


  • STANDARD RENT under Section 2(e)


Section 3 prohibits claiming or receiving rent above the standard rent and as the fair rent is to be fixed within this permissible limit.

The standard rent has between defined as the annual rent which is a total of the following amount:-

(i) 7 ½% of the aggregate amount of-

(a) Cost of construction of the house

(b) Market price of the land


(ii) The municipal taxes