India: Analysis Of The New Model Tenancy Act

• Landlord: A person who receives or is entitled to receive, the rent of any premises, on his own account, if the premises were let to a tenant. It includes his successor-in-interest as well as a trustee or guardian or receiver who is receiving rent for any premises or is entitled to so receive, on account of or on behalf of or for the benefit of, any other person such as minor or person of unsound mind who cannot enter into a contract.
• Tenant: A person by whom or on whose account or on behalf of whom, the rent of any premises is payable to the Landlord under a Tenancy Agreement. This includes any person occupying the premises as a sub-tenant as well as any person continuing in possession after the termination of his tenancy.

• A time-bound and robust grievance redressal mechanism comprising of the Rent Authority, the Rent Court, and the Rent Tribunal has been introduced to provide fast-track resolution.
• The Rent Court and the Rent Tribunal have to dispose of a case within 60 days from the date of its registration as provided under Section 30 of MTA.
• The Tenant has to continue paying the rent even if there is an ongoing dispute between him/her and the Landlord. MTA bars the jurisdiction of Civil Courts in the case of any conflict between the Tenant and the Landlord.

• Landlord cannot evict the Tenant during the ongoing tenancy period as per the written agreement, except in situations as mentioned under respective provisions of the Act.
• In case where the Tenancy Agreement had already expired but the Tenant still continues to occupy the said rented premises, the Tenancy would be deemed to be renewed on month-to- month basis as per the terms and conditions of the expired Tenancy Agreement for a maximum period of six months.
• If Tenant continues to occupy the premises even after completion of six months from expiry of Tenancy Agreement, then the Tenant shall be a 'Tenant in Default' and he/she would be liable to pay an amount which is double the amount of monthly rent for two months as a compensation.
• If the Tenant in Default does not vacate the premises even after this six month period, an amount equivalent to four times the monthly rent has to be paid as compensation.

• The rent has to be revised as per the terms set out in the Tenancy Agreement between the Landlord and the Tenant.
• If the terms of revision of rent are not set out in the Tenancy Agreement, then the Landlord shall give a notice in writing three months before the revised rent becomes due.
• If the Tenant who has already been informed about the revision in rent through a notice as mentioned above does not give notice of termination of tenancy to the Landlord and continues to occupy the said premises, then the Tenant should be deemed to have accepted the revised rent for the purpose of Tenancy Agreement.

• In case of a Force Majeure event, the Landlord shall allow the Tenant to continue in possession till a period of one month from the date of cessation of such disastrous event on the terms of the existing Tenancy Agreement.

• The Landlord cannot enter the rented premises suddenly at any hour without prior intimation to the Tenant. If the Landlord wants to enter the premises, then the Landlord needs to give a written notice or notice through electronic mode, which should be served at least 24 hours prior to the time of entry.
• The entry by the Landlord to the rented premises can be only for the following events:
• • To carry out any kind of repairs or replacement work
  • To carry out the inspection of the rented premises for the purpose of determining the habitable state of the premises
  • For any other reasonable purpose as may be defined in the Tenancy Agreement

• The tenants who would have entered into the tenancy agreements in the current year i.e., 2021, as per the existing tenancy laws would be exempted from the purview of the Model Tenancy Act, 2021.
• There is no requirement of a separate law as all the conditions which needs to be fulfilled in order to validate a Leave & License agreement are already covered under the MTA.
• MTA does not apply on the following:
• • Premises owned or promoted by the Central Government, State Governments, Union Territory Administrations, Local Authority, Government undertaking or enterprise, Statutory Body or Cantonment Board
  • Premises owned by a company, university or organization given on rent to its employees as part of service contract
  • Premises owned by religious or charitable institutions as may be specified by notification by the State Government/Union Territory Administration
  • Premises owned by Board of Auqaf West Bengal registered under the Waqf Act, 1995 or by any trust registered under the public trust law of the State/Union Territory for the time being in force
  • Other buildings or category of buildings specifically exempted in public interest by notification by the State Government/Union Territory Administration

• If the Landlord and the Tenant agree that the Tenancy Agreement entered into between them should be regulated as per the provisions of the MTA, then the Landlord has the duty to inform the Rent Authority which is to be set up for the submission of the Tenancy Agreement, post which MTA would be applicable on the said Tenancy Agreement.

Unless otherwise agreed upon by the Landlord and the Tenant in writing, the Landlord as per the MTA will be liable for:

• Structural repairs, except those damages which are caused by the Tenant
• Colouring of the walls or whitewashing
• Maintenance of the doors and windows as well as their painting
• Changing of the pipelines, whenever necessary
• Electrical wiring maintenance from time to time

• Cleaning of the drains regularly
• Any kind of fixtures or repairs in kitchen
• Socket repairs
• Maintenance of the garden or open spaces
• If there is any kind of damage, then the Landlord should be informed as soon as possible
• Any kind of replacement needed for the glass panels in doors or windows

• The Landlord cannot withhold any essential supply to his/her premises given on rent to a Tenant
• Amount of deposit to be charged by Landlord has been fixed under the MTA
• • Residential: Cannot be more than two month rent amount
  • Commercial: Cannot be more than six month rent amount

• No intentional damage must be done to the premises