By law, a landlord has the right to determine the market value (market rate) of their property and increase it periodically.
In a landmark judgment, the Supreme Court has strengthened the rights of landlords, ruling that a tenant who takes possession of a property under a valid rental agreement cannot subsequently challenge the owner’s ownership or assert rights based on adverse possession. According to News18, the judgment was delivered in a tenancy dispute dating back to 1953 (Jyoti Sharma vs. Vishnu Goyal). The judgment was delivered by a bench comprising Justices J.K. Maheshwari and K. Vinod Chandran, which overturned the decisions of the trial court, the appellate court, and the Delhi High Court.
According to the report, the dispute concerned a shop that the tenants’ ancestors had rented from Ramji Das in 1953. Rent continued to be paid to Ramji Das and later to his heirs over the years. According to a 1953 relinquishment deed and a will dated May 12, 1999, ownership of the property passed to Jyoti Sharma, Ramji Das’ daughter-in-law. Jyoti Sharma demanded that the shop be vacated to expand her family’s sweets and snacks business. On the other hand, the tenants (the sons of the original tenant) challenged her ownership, claiming that the property actually belonged to Ramji Das’ uncle, Sualal, and that the will was forged.
The Supreme Court dismissed the tenants’ claims as “fabricated” and “devoid of evidence.” Citing Exhibit P-18, the 1953 Relinquishment Deed, the court stated that the tenants had paid rent to Ramji Das and his heirs for years, which clearly established a landlord-tenant relationship. The bench stated that when a tenant accepts possession of a property under a valid lease and pays rent, they are precluded from challenging the landlord’s ownership. The court also upheld the 2018 probate proceedings and refused to question the validity of the will based on the wife’s absence from the will, stating that there was no valid reason to do so.
Tenants granted six months’ grace period
The court, taking into account the long tenancy period, granted tenants six months to pay the outstanding rent, vacate the property, and hand over possession. This Supreme Court decision clarifies that possession under a tenancy is permissive, not hostile. This decision strengthens the rights of landlords and stipulates that tenants cannot claim hostile possession or ownership if they have ever accepted a valid rental agreement.
Learn about the landlord’s legal rights
According to housing.com, tenancy in India is governed by building laws such as the Rent Control Act and the Model Tenancy Act, 2020. Landlords are granted several key rights, including the right to increase their ownership, evict a tenant, and take possession of the property.
Right to Increase Rent
By law, a landlord has the right to determine the market value (market rate) of their property and increase it periodically. Typically, rents in India increase by approximately 10% each year. However, this category of rent is subject to state-specific rent laws, meaning each state may have its own rules. The Model Tenancy Act, 2020, clarifies several nuances related to rent settlement, modification, and payment.
Right to Evict a Tenant
- Under the Rent Control Act, landlords can evict tenants under the following circumstances:
- If the tenant sublets a portion of the property to a third party.
- In addition, they can do so if a tenant violates any terms stipulated in the rental agreement.
- When the landlord intends to use the property for himself or his family.
- The landlord’s name can be added to a “Progressive Rent Increment Clause,” so that if the tenant fails to vacate the property on time, the landlord automatically incurs an increase.
Right to Temporary Possession for Repairs
If a property requires repairs or maintenance work (repairs and maintenance work) that makes it impossible for the tenant to live in it, the landlord has the right to evict the tenant temporarily. Once the job is completed, the landlord can re-rent the property to the tenant.
