8. Court may fix standard rent and permitted increases in certain cases.—
(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) If there is any dispute between the landlord and the tenant regarding the amount of permitted increase, the court may determine such amount.
(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) (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) No appeal shall lie from any order of the court under sub-sections (3) and (4).
(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.
9. No application for standard rent in certain circumstances.—
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.
10. Rent in excess of standard rent illegal.—
(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) 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.
11. Increase in rent annually and on account of improvement etc. special addition etc. and special or heavy repairs.—
(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) 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) (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) (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.
12. Increase in rent on account of payment of rate, etc.—
(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) 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) 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.
13. Certain increase in rent expected.—
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.
14. Landlords’ duty to keep premises in good repair.—
(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) 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) 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.
