In what ways will Rent Courts resolve landlord-tenant disagreements?

On June 2, 2021, the Ministry of Housing and Urban Affairs adopted the Model Tenancy Act (MTA) to govern the lease of buildings in a transparent and efficient manner employing quasi-judicial entities. The goal was to reconcile the interests of renters and owners by resolving disputes in a timely manner by establishing an adjudicating system, such as a Rent Court, a Rent Authority, or a Rent Tribunal, if needed.

What is the structure of a Rent Court?

The Act empowers all Union Territory and State (UT/State) administrations in the country to establish as many Rent Courts as they feel necessary in their respective geographic locations. If a Rent Court already exists in a UT/State under another legislation, it can be classified as a Rent Court under MTA, 2021. In the absence of such a Court in a given location, any other Court created under any other legislation may be designated a Rent Court under the Tenancy Act. If a UT/State establishes more than two Rent Courts in an area, the concerned government may make a particular order to manage business allocation among the same.

A Rent Court should be composed of two members and a Presiding Officer, who shall be appointed by the competent UT/State government after consultation with the High Court. Only members of the State Higher Judicial Service are entitled to be appointed as Presiding Officers or Members of Rent Courts. 

What is a Rent Court’s jurisdiction and procedure?

A Rent Court has the authority to hear and decide an application involving a rental dispute between a tenant and an owner. To carry out its job under the MTA, 2021, the former will have the same powers as a Civil Court under the Code of Civil Procedure, 1908.

The Rent Court has no jurisdiction over issues concerning the ownership and title of real estate. A Rent Court must hear and decide a matter within 30 days of the day the case application is received. In the case that this is not done, the relevant Court must record the circumstances in writing.

If a party is dissatisfied with the Rent Court’s final ruling, he or she may file an appeal with the Rent Tribunal in question. This appeal must be submitted within thirty days of the case’s completion. The Tribunal must set a date and decide the appeal within 30 days and 120 days, correspondingly, of receiving the appeal.  The Rent Tribunal has the authority to overturn, confirm, or alter a Rent Court’s final ruling.

How will the final order be carried out?

After all hearings for an application have concluded, a Rent Court shall issue a final ruling using one or more of the following mechanisms:

• The individual in whose favour the decision was made will be allowed ownership of the affected premises (no title change).
• One or more of the decision-bank maker’s accounts will be associated, and the due amount will be specified.
• An advocate or any other competent person from the local administration, local body, or a Rent Court itself should be appointed to oversee the execution of the said Court’s final ruling.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.