Chapter II PROVISIONS REGARDING FIXATION OF STANDARD RENT AND PERMITTED INCREASE

In this Act, unless there is anything repugnant to the subject or context,-

1. (1) "Competent Authority" means the competent authority appointed under section 40;
2. (2) "Government allottee",-
   • (a) In relation to any premises requisitioned or continued under requisition which are allotted the State Government for any non-residential purpose to any Department or office of the State Government or Central Government or any public sector undertaking or corporation owned or controlled fully or partly by the State Government or any Cooperative Society registered under the Maharashtra Co-operative Societies Act, 1960 (Mah. XXIV of 1961) or any foreign consulate, by whatever name called, and on the 7th December 1996, being the date of coming into force of the Bombay Rents, Hotel and Lodging House Rates Control, Bombay Rents, Hotel and Lodging House Rates Control, Bombay Land Requisition and Bombay Government Premises (Eviction) (Amendment) Act, 1996 (Mah. XVI of 1997) were in their occupation or possession, means the principal officer-in-charge of such office or department or public sector undertaking or corporation or society or corporation or society or consulate; and
   • (b) in relation to any premises requisitioned or continued under requisition which were allotted by the State Government for residential purpose to any person and on the 7th December 1996, being the date of coming into force of the Bombay Rents, Hotel and Lodging House Rates Control, Bombay Land Requisition and Bombay Government Premises (Eviction) (Amendment) Act, 1996 (Mah. XVI of 1997); such person or his legal heir was in occupation or possession of such premises for his or such legal heirs own residence, means such person or legal heir;
3. (3) "Landlord" means any person who is for the time being, receiving, or entitled to receive rent in respect of any premises whether on his own account or on account or on behalf, or for the benefit, of any other person or or as a trustee, guardian, or receiver, for any other person or who would so receive the rent or be entitled to receive the rent if the premises were let to a tenant; and includes any person not being a tenant who from time to time derives title under a landlord, and further includes in respect of his sub-tenant, a tenant who has sub-let any premise; and also includes, in respect of a licensee deemed to be a tenant under the provisions of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 (Bom. LVII of 1947), the licensor who has given premises on licence and in respect of the State Government, or as the case may be, the Government allottee referred to in sub-clause (b) of clause (2) deemed to be a tenant by section 27 the person who was entitled to receive the rent if the premises were let to a tenant immediately before the 7th December 1996, that is before the coming into force of the Bombay Rents, Hotel and Lodging House Rates Control, Bombay Land Requisition and the Bombay Government Premises (Eviction) (Amendment) Act, 1996 (Mah. XVI of 1997).
4. (4) "Legal representative" means a legal representative as defined in the Code of Civil Procedure, 1908 (V of 1908), and includes also, in the case of joint family property, the joint family of which the deceased person was a member;
5. (5) "Licensee" in respect of any premises or any part thereof, means the person who is in occupation of the premises or such part, as the case may be, under a subsisting agreement for a licence given for a licence fee or charge; and includes any person in such occupation of any premises or part thereof in a building vesting in or leased to a Co-operative Housing society registered or deemed to be registered under the Maharashtra Co-operative Societies Act, 1960 (Mah. XXIV of 1961); but does not include a paying guest, a member of a family residing together, a person in the service or employment of the licensor, or a person conducting a running business belonging to the licensor or a person having any accommodation for rendering or carrying on medical or para-medical services or activities in or near a nursing home, hospital or sanatorium or a person having any accommodation in a hotel, lodging house, hostel, guest house, club, nursing home, hospital, sanatorium, dharmashala, home for widows, orphans or like premises, marriage or public hall or like premises, or in a place of amusement or entertainment or like institution, or in any premises, belonging to or held by an employee or his spouse who on account of exigencies of service or provisions of residence attached to his or her post or office is temporarily not occupying the premises, provided that he or she charges licence fee or charge for such premises of the employee or spouse not exceeding the standard rent and permitted increase for such premises, and any additional sum for service supplied with such premises or a person having accommodation in any premises or part thereof for conducting a canteen, creche, dispensary or other services as amenities by any undertaking or institution; and the expressions "licence", "licensor" and "premises given on license" shall be construed accordingly;
6. (6) "local authority" means,-
   • (a) the Mumbai Municipal Corporation constituted under the Mumbai Municipal Corporation (Bom. III of 1888) or the Nagpur Municipal Corporation constituted under the 1City of Nagpur Municipal Corporation Act, 1948 (C. P. and Berar II of 1950) or any Municipal Corporation constituted in respect of any city under the 2Bombay Provincial Municipal Corporations Act, 1949 (Bom. LIX of 1949),
   • (b) a Municipal Council, constituted under the Maharashtra Municipal Councils, Nagar Panchayats and Industrial Townships Act, 1965 (Mah. XL of 1965),
   • (c) Zilla Parishad and a Panchayat Samiti constituted under the Maharashtra Zilla Parishads and Panchayat Samitis Act, 1961 (Mah. V of 1962),
   • (d) a Village Panchayat, constituted under the 3Bombay Village Panchayats Act, 1958 (Bom. III of 1959),
   • (e) a cantonment, constituted under the Cantonments Act, 1924 (Act 2 of 1924),
   • (f) the Nagpur Improvement Trust, constituted under the Nagpur Improvement Trust Act, 1936 (C. P. and Berar Act XXXVI of 1936),
   • (g) the Maharashtra Housing and Area Development Authority or a Board, constituted under the Maharashtra Housing and Area Development Act, 1976 (Mah. XXVIII of 1977),
   • (h) the City and Industrial Development Corporation,
     • (i) the Pimpri and Chinchwad New Township Development Authority;
7. (7) "paying guest" means a person, not being a member of the family, who is given a part of the premises, in which the licensor resides, on licence;
8. (8) "permitted increase" means an increase in rent permitted under the provisions of this Act;
9. (9) "premises" means any building or part of a building let or given on licence separately (other than a farm building) including,-
   • (i) the gardens, grounds, garages and out-houses, if any, appurtenant to such building or part of a building,
   • (ii) any fitting affixed to such building or part of a building for the more beneficial enjoyment thereof, but does not include a room or other accommodation in a hotel or lodging house;
10. (10) "premises requisitioned or continued under requisition" means the premises requisitioned or continued under requisition under the 1Bombay Land Requisition Act, 1948 (Bom. XXXIII of 1948);
11. (11) "prescribed" means prescribed by rules;
12. (12) "repealed Act" or "repealed Acts" means the Act, or Acts referred to in the section 58;
13. (13) "rules" means the rules made under this Act;
14. (14) "standard rent" in relation to any premises means,-
    • (a) where the standard rent is fixed by the Court or, as the case may be, the Controller under the Bombay Rents Restriction Act, 1939 (Bom. XVI of 1939), or the Bombay Rents Hotel Rates and Lodging House Rates (Control) Act, 1944 (Bom. VII of 1944) or the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 (Bom. LVII of 1947), or the Central Provinces and Berar Letting of Houses and Rent Control Order, 1949 issued under the Central Provinces and Berar Regulation of Letting of Accommodation Act, 1946 (C. P. and Berar No. XI of 1946), or the Hyderabad Houses (Rent, Eviction and Lease) Control Act, 1954 (Hyd. Act No. XX of 1954), such rent plus an increase of 5 per cent., in the rent so fixed; or
    • (b) where the standard rent or fair rent is not so fixed, then subject to the provisions of sections 6 and 8,-
      • (i) the rent at which the premises were let on the 1st day of October 1987; or
      • (ii) where the premises were not let on the 1st day of October 1987 or the rent at which they were last let before that day, plus increase of 5 per cent. in the rent of the premises let before the 1st day of October 1987, or
    • (c) in any of the cases specified in section 8, the rent fixed by the Court;
15. (15) "tenant" means any person by whom or on whose account rent is payable for any premises and includes,-
    • (a) such person,-
      • (i) who is a tenant, or
      • (ii) who is a deemed tenant, or/b
      • (iii) who is a sub-tenant as permitted under a contract or by the permission or consent of the landlord, or
      • (iv) who has derived title under a tenant, or
      • (v) to whom interest in premises has been assigned or transferred as permitted, by virtue of, under the provisions of, any of the repealed Acts;
    • (b) a person who is deemed to be a tenant under section 25;
    • (c) a person to whom interest in premises has been assigned or transferred as permitted under section 26;
    • (d) in relation to any premises, when the tenant dies, whether the death occurred before or after the commencement of this Act, any member of the tenants family, who,-
      • (i) where they are let for residence, is residing, or
      • (ii) where they are let for education, business, trade or storage, is using the premises for any such purpose, with the tenant at the time of his death, or in the absence of such member, any heir of the deceased tenant, as may be decided, in the absence of agreement by, the court. Explanation.- The provisions of this clause for transmission of tenancy shall not be restricted to the death of the original tenant, but shall apply even on the death of any subsequent tenant, who becomes tenant under these provisions on the death of the last preceding tenant.

1. (1) Subject to the provisions of section 9 in any of the following cases, the court may, upon an application made to it for the purpose, or in any suit or proceedings, fix the standard rent at such amount as, having regard to the provisions of this Act and the circumstances of the case, the court, deems just,-
   • (a) where the court is satisfied that there is no sufficient evidence to ascertain the rent at which the premises were let in any one of the cases mentioned in paragraphs (i) and (ii) of sub-clause (b) of clause (14) of section 7; or
   • (b) where by reasons of the premises having been let at one time as a whole or in parts and at another time, in parts or as a whole, or for any other reasons; or
   • (c) where any premises have been or are let rent-free or, at a nominal rent; or for some consideration in addition to rent; or
   • (d) where there is any dispute between the landlord and the tenant regarding the amount of standard rent.
2. (2) If there is any dispute between the landlord and the tenant regarding the amount of permitted increase, the court may determine such amount.
3. (3) If any application for fixing the standard rent or for determining the permitted increase is made by a tenant,-
   • (a) the court shall forthwith specify the amount of rent, or permitted increase which are to be deposited in court by the tenant, and make an order directing the tenant to deposit such amount in court or, at the option of the tenant, make an order to pay to the landlord such amount thereof as the court may specify pending the final decision of the application. A copy of the order shall be served upon the landlord;
   • (b) out of any amount deposited in the court under clause (a), the court may make an order for payment of such reasonable sum to the landlord towards payment of the rent or increases due to him as it thinks fit;
   • (c) if the tenant fails to deposit such amount or, as the case may be, to pay such amount thereof to the landlord, his application shall be dismissed.
4. (4) (a) Where at any stage of a suit for recovery of rent, whether with or without a claim for possession of the premises, the court is satisfied that the rent is excessive and standard rent should be fixed, the court may, and in any other case, if it appears to the court that it is just and proper to make such an order, the court may make an order directing the tenant to deposit in court forthwith such amount of the rent as the court considers to be reasonable due to the landlord, or at the option of the tenant, an order directing him to pay to the landlord such amount thereof as the court may specify.
   • (b) The court may further make an order directing the tenant to deposit in court periodically such amount as it considers proper as interim standard rent, or at the option of the tenant, an order to pay to the landlord, such amount thereof as the court may specify, during the pendency of the suit.
   • (c) The court may also direct that if the tenant fails to comply with any order made as aforesaid, within such time as may be allowed by it, he shall not be entitled to appear in or defend the suit except with leave of the court, which leave may be granted subject to such terms and conditions as the court may specify.
5. (5) No appeal shall lie from any order of the court under sub-sections (3) and (4).
6. (6) An application under this section may be made jointly by all or any of the tenants interested in respect of the premises situated in the same building.

No court shall, upon an application or in any suit or proceedings, fix the standard rent of any premises under section 8, or entertain any plea that the rent or increases are excessive, if the standard rent or the permitted increase in respect of the same premises have been duly fixed by a competent court on the merits of the case, without any fraud or collusion or an error of the fact, and there has been no structural alternations or change in the amenities or in respect of any other factors which are relevant to the fixation of the standard rent, or change in such increases, thereafter in the premises.

1. (1) Save as otherwise provided in section 6, it shall not be lawful to claim or receive on account of rent, for any premises any increases above the standard rent and the permitted increases, unless the landlord was, before the coming into operation of this Act, entitled to recover such increase by virtue of, or under, the provisions of any of the repealed Acts or is entitled to recover such increase under the provisions of this Act.
2. (2) Any contravention of provisions of sub-section (1) shall be an offence punishable, on conviction, with imprisonment not exceeding three months or fine not exceeding rupees five thousand or with both.

1. (1) After the commencement of this Act a landlord shall be entitled to make an increase of 4 per cent. per annum in the rent of the premises let for any of the purpose referred to in sub-section (1) of section 2. Explanation.- For the purposes of this sub-section, the period of one year on completion of which rent shall be so increased shall be computed from the date of commencement of this Act.
2. (2) A landlord shall also be entitled to make such increase in the rent of the premises as may be reasonable for an improvement or structural alterations of the premises which has been made with the consent of the seventy per cent. of the tenants given in writing. Explanation.- In this sub-section, improvements and alterations do not include the repairs which the landlord is bound to make under sub-section (1) of section 14.
3. (3) (a) Notwithstanding anything contained in sub-section (2), but subject to the provisions of clauses (b) and (d), landlord shall further be entitled to make an increase in the rent of premises by an addition to the rent in the manner prescribed of an amount not exceeding fifteen per cent. per annum of the expenses incurred on account of special additions to premises or special alterations made therein or additional amenities provided for the premises or on account of improvements or structural alterations made under sub-section (2) after the commencement of this Act. Explanation.- For the purpose of this clause, the expression "expenses incurred" in relation to the execution of any work specified therein, means the total cost incurred therefor as certified by the municipal authority or an architect from a panel of architects notified by the State Government for the purposes of this Act.
   • (b) Before making any increase under clause (a), the landlord shall obtain a certificate from the municipal authority that he was required by it to make or to provide such additions, alterations, improvements or amenities and has completed them in conformity with its requirements.
   • (c) If a landlord, when required by a municipal authority to execute the work of any such additions, improvements, alterations or amenities, fails to do so, the tenant or the tenants interested in such work may seek the approval of the municipal authority for executing such work. The municipal authority shall grant the approval, unless other measures are taken by it to execute the said work. While granting the approval, the municipal authority shall specify the nature of the work. Upon such approval being granted, the tenants shall be entitled to execute the said work and the expenses incurred for such work shall, for all purposes, be binding on the landlord. The tenants shall also be entitled to deduct amount of expenses incurred for such work from the rent which from time to time becomes due by them to the landlord or otherwise recover such amount from him: Provided that, where such work is jointly executed by the tenants the amount to be deducted or recovered by each tenant shall bear the same proportion as the rent payable by him in respect of his premises bears to the total amount of the expenses incurred for such work: Provided further that, the total amount so deducted or recoverable shall not exceed the amount of expenses incurred for such work. Explanation.- For the purposes of this sub-section,-
   • (a) the expression "municipal authority" includes,-
     • (i) in the case of any Municipal Corporation, the Municipal Commissioner or any officer of the Municipal Corporation authorised by him in this behalf;
     • (ii) in the case of any Municipal Council, the Chief Officer of the Council; and
     • (iii) in the case of any Cantonment, the Executive Officer of the Cantonment;
   • (b) the expression "expenses incurred for such work" means the total cost as certified by the municipal authority or an architect from the panel of architects notified by the State Government for the purposes of this Act.
   • (d) In respect of any work executed by the tenants under clause (c) and where the total amount of the expenses incurred for such work is deducted or recovered by the tenant or tenants, as the case may be, in accordance with the provisos thereto, the landlord shall be entitled to make the increase permitted under clause (a); and such increase of rent shall be payable from the month following the month in which such total amount is so deducted or recovered.
4. (4) (a) The Landlord shall also be further entitled to make, on account of special or structural repairs made by him in accordance with the provisions of this sub-section, a temporary increase in the rent of promises by an addition to the rent, in the manner prescribed at a rate not exceeding twenty-five per cent. of the standard rent; and the increase of rent shall be payable from the date of completion of the repairs till amount of the expenditure for such repairs is recovered from the tenant. Explanation.- Nothing in this sub-sections shall apply to the structural repairs to buildings carried out by the Mumbai Repairs and Reconstruction Board under Chapter VIII of the Maharashtra Housing and Area Development Act, 1976 (Mah. XXVIII of 1977).
   • (b) Before making any increase under clause (a), the landlord shall obtain, in the prescribed manner and in the prescribed form, a declaration from the prescribed authority or a certificate from an architect from a panel of architects notified by the State Government for the purposes of this Act; asserting that it is necessary to undertake such repairs and specifying the nature and extent of repairs required and the estimated cost therefor, and after such repairs are carried out, the landlord shall also obtain, in the prescribed manner and in the prescribed form, a certificate from such prescribed authority or such architect confirming that the repairs were carried out in accordance with the declaration, or as the case may be the certificate aforesaid and fixing the date of completion of the repairs and the actual expenses therefor.
   • (c) The increase in rent under clause (a) shall be recoverable from all tenants occupying premises in the building on the basis of the actual expenses incurred as specified in a certificate from the municipal authority or the architect as aforesaid, and the amount to be recovered from each tenant shall bear the same proportion as the rent payable by him in respect, of his premises bears to the total amount of actual expenses.

1. (1) Where a landlord is required to pay to Government or to any local authority or statutory authority in respect of any premises any fresh rate, cess, charges, tax, land assessment, ground rent of land or any other levy on lands and buildings, he shall, notwithstanding anything contained in any other provisions of this Act but save as otherwise expressly provided in any other law for the time being in force, be entitled to make an increase in the rent of such premises: Provided that, the increase in rent shall not exceed the amount of any such rate cess, charges, tax, land assessment, ground rent of land or any other levy on lands and buildings, as the case may be.
2. (2) Where the rent is inclusive of charges for electricity and water and the landlord is required to pay any increase in these charges in respect of any premises, he shall be entitled to make an increase in the rent of such premises by an amount not exceeding the additional amount payable by him in respect of such premises on account of such increase.
3. (3) The amount of the increase in rent recoverable from each tenant under sub-sections (1) and (2) shall bear the same proportion as the rent payable by him in respect of his premises bears to the total amount of any such rate, cess, charges, tax, land assessment, ground rent of land or any other levy on lands and buildings, or increase in electricity or water charges, as the case may be.

Any increase of rent under any of the foregoing provisions of sections 11 and 12 shall not be deemed to be increase for the purpose of section 10.

1. (1) Notwithstanding anything contained in any law for the time being in force and in the absence of an agreement to the contrary by the tenant, every landlord shall be bound to keep the premises in good and tenantable repair.
2. (2) If the landlord neglects to make any repairs, which he is bound to make under sub-section (1), within a reasonable time after a notice of fifteen days is served upon him by post or in any other manner by a tenant or jointly by tenants interested in such repairs, such tenant or tenants may themselves make the same and deduct the expenses of such repairs from the rent or otherwise recover them from the landlord. Provided that, where the repairs are jointly made by the tenants, the amount to be deducted or recovered with interest by each tenant shall bear the same proportion as the rent payable by him in respect of his premises bears to the total amount of the expenses incurred for such repairs together with simple interest at fifteen per cent. per annum on such amount: Provided further that, the amount so deducted or recoverable in any year shall not exceed one-fourth of the rent payable by the tenant of that year.
3. (3) For the purpose of calculating the expenses of the repairs made under sub-section (2), the accounts together with the vouchers maintained by the tenants shall be conclusive evidence of such expenditure and shall be binding on the landlord.