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Editor

Neha Goel, Advocate

Advisory Board

S.C. Khunger, Advocate

Rohit Bansal, Advocate

Varinder Singh Kanwar, Advocate

Hittan Nehra, Advocate

Judgments on Karnataka Rent Act, 1999

Thursday, August 26, 2010
Karnataka Rent Act, 1999

Karnataka Rent Act, 1999 — Section 70 — Karnataka Rent Control Act, 1961 — Held, it is very clear from Section 70 of the 1999 Rent Act that unless proceedings initiated under the 1961 Act has reached the stage of execution of a decree, 1961 Act will have no application to other eviction proceedings which are pending, prior to the execution stage, on the date of coming into effect of the 1999 Rent Act.

 
Karnataka Rent Act, 1999

Karnataka Rent Act, 1999 — Sections 2(3)(e) and 7 — Karnataka Rent Control Act, 1961, Section 21(1)(h) and (f) — Appellants, in the present case,  instituted an eviction proceeding against the respondents under Section 21 (1) (h) and (f) of Karnataka Rent Control Act, 1961, inter alia, on the grounds of default, subletting, reasonable and bonafide requirements and some other grounds — During the pendency of the eviction proceeding, under Section 21(h)(f) of the 1961 Act, Karnataka Rent Act 1999 came into effect repealing the 1961 Act — The appellants  amended their eviction proceedings in accordance with the 1999 Rent Act and the respondents gave their objections to the same — The main objection of the respondents in IA 8 is that admittedly they are tenants on a monthly rental of Rs.4000/- and as such the eviction proceeding is not maintainable in respect of the premises under the 1999 Rent Act as the same is not applicable to premises where the monthly rental exceeds Rs.3500/-. It was, therefore, urged that the Court of Small Causes has no jurisdiction to try the said eviction proceeding as the 1999 Rent Act does not apply — By an Order dated 18.01.2007 the Court of XVth Additional Small Causes Judge, inter alia, held that “since the monthly rent of scheduled premises exceeds Rs.3500/-, hence the Karnataka Rent Act, 1999 is not applicable and this Court has no jurisdiction to try the case and the petition is not maintainable before this court”. Saying so, IA 8 was allowed by the XVth Additional Judge of the Small Causes Court — Said order of the Court of XVth Additional Small Causes Judge was upheld by the High Court in a revision petition — Appeal against — The learned counsel for the appellants submitted that the non-applicability of the 1999 Rent Act is only on the basis if in the tenanted premises the deemed rent or the standard rent exceeds Rs.3500/- on the date of commencement of the new Act of 1999 Rent Act. It was urged that such standard rent is one which is fixed under Section 7 of the Act and it was argued that merely because the agreed rent is Rs.4000/- per month in respect of the schedule premises, the Small Causes Court should not have allowed the application of the tenant — Held, submission of the learned counsel for the appellants cannot be accepted — Hon’ble High Court has not committed any error while dismissing the revision petition filed by the apellants — Appeal dismissed.

 
Karnataka Rent Act, 1999

Karnataka Rent Act, 1999 — Held, The 1999 Rent Act (Karnataka Act 34 of 2001) was brought into existence to remedy problems of urbanisation and to give protection of this only to certain categories of tenants and in respect of some kinds of tenanted premises. 

 
Karnataka Rent Act, 1999

Karnataka Rent Act, 1999 — Application of the Act — Held, is restricted to,-

 

(i) to any residential building the Standard rent of which does not exceed rupees 3,500 per month in the areas covered by Karnataka Municipal Corporatio Act, 1976 and rupees 2,000 per month in other areas and a commercial building having plinth area of not exceeding 14 square meter.

 

(ii) to buildings which are more than 15 years old.

 

(2) The Rent Deed is required to be in writing and registered.

 

(3) Tenancy is made inheritable to a limited extent.

 

(4) Provision is made,-

 

 (a) for collection of standard rent in relation to the investment on property and for enhancement of rent, and for determination of Standard Rent by Rent Controller;

 

 (b) for registration of middlemen and estate agents;

 

 (c) for adjudication of eviction application by Rent Courts, with only Right of Revision, but no appeal;

 

(d) for immediate eviction of tenants of State or Central Government Employees, members of Armed Forces, widows, handicapped persons and persons above the age of 65 years under certain circumstances;

 

 (e) to laydown Special Procedure for trial of cases before the controllers and also the Courts so as to achieve quick disposals and negotiated settlement.

 

(f) to impose certain Special obligations on the landlords and tenants, etc.”  

 
Karnataka Rent Act, 1999

Karnataka Rent Act, 1999 — Held, 1999 Rent Act is a socio-economic legislative measure and is designed to give protection to certain classes of tenants.

 
Karnataka Rent Act, 1999

Karnataka Rent Act, 1999 — Sections 2(3)(e), 7 and 9 — A tenant who is paying deemed rent or standard rent above Rs.3500/- in respect of his tenanted premises on the day of commencement of the new Act is outside the purview of the Act.

 
Karnataka Rent Act, 1999

Karnataka Rent Act, 1999 — Sections 2(3)(e), Explanation — Deemed rent — In the instant case the agreed rent is the deemed rent since there is no dispute about the quantum of agreed rent before the coming into force of this Act.

 
Karnataka Rent Act, 1999

Karnataka Rent Act, 1999 — Sections 2(3)(e), Explanation — Deemed rent — A perusal of the said Explanation would show that the deemed rent refers to Sections 7 and 9 of 1999 Rent Act. 

 
Karnataka Rent Act, 1999

Karnataka Rent Act, 1999 — Section 6 — Rent payable — Under Section 6 of the Act, rent payable in respect to the premises is the rent agreed between the landlord and tenant as enhanced in the manner provided in the Third Schedule or the standard rent as specified under Section 7 and revised under Section 9.

 
Karnataka Rent Act, 1999

Karnataka Rent Act, 1999 — Section 7 — Standard rent — In a case where there is an admitted agreed rent, the question of fixation of standard rent does not arise.

 
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