Chapter VII Chapter VII

Hotels and lodging houses

Application of this Chapter.— The provisions of this Chapter shall come into force in any local area only with effect from such date as the Administrator may, by notification, in the Official Gazette appoint: Provided that if the Administrator is of the opinion that it would not be desirable in the public interest to make the provisions of this Chapter applicable to any class of hotels or lodging houses, he may, by notification in the Official Gazette, exempt such class of hotels or lodging houses from the operation of this Chapter.

Determination of fair rate.—

1. (1) Where the Rent Tribunal, on a written complaint or otherwise, has reason to believe that the charges made for boarding or lodging or any other service provided in any hotel or lodging house are excessive, it may fix a fair rate to be charged for boarding, lodging or other services provided in the hotel or lodging house and in fixing such fair rate, specify separately the rate for lodging, boarding and other services.
2. (2) In determining the fair rate under sub-section (1), the Rent Tribunal shall have regard to the nature of the boarding, lodging and other services furnished, the prevailing rates of charges for the same or similar services, the cost of living and the scale of charges for boarding, lodging and other services as on the last day of January, 1965.

Revision of fair rate.— On a written application from the manager of a hotel or the owner of a lodging house or otherwise, the Rent Tribunal may, from time to time, revise the fair rate to be charged for boarding, lodging or other service in a hotel or lodging house, and fix such rate as it may deem fit having regard to any general rise or fall in the cost of living which may have occurred after the fixing of the fair rate.

No charges payable in excess of fair rate.— When the Rent Tribunal has determined the fair rate of charges in respect of a hotel or lodging house—

1. (a) the manager of the hotel or the owner of the lodging house, as the case may be, shall not charge any amount in excess of the fair rate and shall not, except with the previous written permission of the Rent Tribunal, withdraw from the lodger any concession or service allowed at the time, when the Rent Tribunal determined the fair rate;
2. (b) any agreement for the payment of any charges in excess of such fair rate shall be void in respect of such excess and shall be construed as if it were an agreement for payment of the said fair rate;
3. (c) any sum paid by a lodger in excess of the fair rate shall be recoverable by him at any time within a period of six months from the date of the payment from the manager of the hotel or the owner of the lodging house or his legal representatives and may, without prejudice to any other mode of recovery, be deducted by such lodger from any amount payable by him to such manager or owner.

Recovery of possession by manager of a hotel or the owner of a lodging house.— Notwithstanding anything contained in this Act, the manager of a hotel or the owner of a lodging house shall be entitled to recover possession of the accommodation provided by him to a lodger on obtaining a certificate from the Controller certifying-

1. (a) that the lodger has been guilty of conduct which is a nuisance or which causes annoyance to any adjoining or neighbouring lodger; Explanation:— For the purpose of this clause, “nuisance” shall be deemed to include any act which constitutes an offence under the Suppression of Immoral Traffic in Women and Girls Act, 1956;
2. (b) that the accommodation is reasonably and bonafide required by the owner of the hotel or lodging house, as the case may be, either for his own occupation or for the occupation of any person for whose benefit the accommodation is held, or any other cause which in the opinion of the Controller is sufficient; or
3. (c) that the lodger has failed to vacate the accommodation on the termination of the period of the agreement in respect thereof; or
4. (d) that the lodger has done any act which is inconsistent with the purpose for which the accommodation was given to him or which is likely to affect adversely or substantially the owner’s interest therein; or
5. (e) that the lodger has failed to pay the rent due from him.

Resumption of occupation of the building given on leave and license basis.—

1. (1) Notwithstanding anything contained in this Act, a licensee in occupation of any building given to him by a landlord on a leave and license basis, shall vacate such building and allow the landlord to resume his occupation immediately on expiry of the period of leave and license; and in case of failure of the licensee to so vacate the building, the landlord may apply to the Deputy Collector for an order of eviction of the licensee.
2. (2) On receipt of the application under sub-section (1), the Deputy Collector shall issue a notice to the licensee to show cause why an order of eviction shall not be passed against him.
3. (3) On receipt of the notice issued under sub-section (2), the licensee shall, in case he desires to contest such application, file his reply showing the cause within a period of twenty days from the date of receipt of such notice.
4. (4) The period of twenty days to file the reply as specified in sub-section
5. (3) may be extended by the Deputy Collector in exceptional cases, on sufficient cause being shown, by a period not more than sixty days from the date of receipt of the notice under sub-section (2).
6. (5) The Deputy Collector shall conduct an inquiry based solely on the documents and material produced before him. He shall consider the reply, if any, filed by the licensee and give the licensee an opportunity of being heard in the matter. Explanation:— For the purpose of this section, the inquiry contemplated shall be a summary inquiry for the limited purpose of ascertaining that the building was subject matter of an agreement of leave and licence and that the period of such leave and license has expired.
7. (6) The Deputy Collector, on being satisfied that the period of the leave and licence has expired and the licensee has not vacated the building, shall pass an order of eviction of the licensee and also direct the licensee to pay to the landlord the damages at double the rate of the licence fee and other charges, if any, in respect of such building as fixed under the agreement of leave and licence, till the date he vacates such building.
8. (7) The Deputy Collector shall not entertain any claim of whatsoever nature from any other person who is not a licensee.
9. (8) The Deputy Collector shall decide the application under sub-section
10. (1) within a period of six months from the date of its filing.
11. (9) Any licensee who fails to vacate the building given to him by the landlord on leave and licence basis after expiry of the leave and licence period, shall, on conviction, be punished with imprisonment which may extend to three months or with fine not exceeding rupees one lakh or with both.