Jammu and Kashmir homes rent control act 1966 section 03-10.
This Article is about provisions related to rent determination, fixation, payment, extra payment other then rent etc. Under provisions of j&k home rent control act 1966.
Contents of the Article,
Section 3,4,5,6,7,8,9,10
Let's start
Before coming directly on section 3 of the act let's first understand the definition of Fair Rent (under section 2(2) of this act)
Section 2, Sub-section 2 gives an exhaustive definition of the words ‘fair-rent’. According to this definition fair rent in respect of any house or shop means
(a) fair rent determined in accordance with the provisions of Schedule ‘A’;
(b) where rent has been fixed under section 8, when an application is made for such purpose.
Section 3 ;- If the tenant pays any amount other then rent to the landlord that shall be irrecoverable under section 3 if there is no clause in the agreement.
Section 4 ;- landlord can't ask for advance payment, fine or pugree ,security or more then one month rent.
Proviso ; with the previous written consent of controller.
Section 5:- landlord cannot impose condition on tenant to purchase the furniture before taking house on rent except taking written consent of controller (if tenant wants to purchase)
Section 6 ;- under this section of j&k home and shop rent control act 1966 we know that any refund of rent, premium or pugree is not recoverable under this act. But if tenant makes an application to the controller within 6 months from the date of such payment may be refunded such amount to tenant. And such order passed by controller shall be executed by the court having jurisdiction of try that suit.
Section 7;- under this section if the house or shop is rented to tenant with the facility of furniture. The tenant can make application to the controller within 6 months of the tenancy for reduction of rent if in the opinion of controller the rent is unduly high he can fix the rent under section 8 of the act.
Section 8;- Procedure for fixation of the rent:
Section 8 does not lay down any specific procedure which the Controller should adopt to fix “fair rent” under the Act.
All that the Section lays down is that the Controller shall on application by land lord or tenant “fix the fair rent”.
But the controller cannot “fix the fair rent” on mere presentation of the application by the landlord or the tenant. If he does so, he acts arbitrarily.
Section 19 of the Act, however, enacts that subject to other provisions of the Act, before exercising any of the powers conferred on the Controller by the Act, he shall give notice by registered post of his intention to exercise powers under the Act to the landlord and to the tenant, if any, and shall cause a copy of such notice to be affixed in a conspicuous place at his office and shall dully considered any application received by him within the period specified in the notice.
Under this act the controller may fix fair rent when receive application from tenant or landlord such rent shall be revised after every 3 years.
The controller may fix rent in following conditions ;
1. Under this clause the fair rent is to be where the provision of Schedule (A) is applicable and there is no reason for making any alteration of rent so determined according to the Schedule or as warranted in clauses b, c, or d of section 8(1). In other words, if there is no cause for alteration in the rate of rent as determined under the Schedule for any of the reasons mentioned in the subsequent clauses, the Controller has to apply the provisions of the Schedule A to fix the fair rent.
Where provisions of schedule A is followed by need to further alteration as it is already a fair rent.
2. .Sub-section (1) Clause (b):-Fixation of fair rent due to increase in Municipal taxes.
One of the objects of Rent Control Legislation is to ensure that the Act does not operate so as to penalize the landlord by disregarding altogether certain important factors that would entitle him to receive a higher rent. Generally, under sub-section 1 of Section 8 allowed the revision of rent after three years of the fixation of it if and parties so desired, but this clause is applicable when during the currency of fixed fair rent any Municipal taxes, rates or cesses to that house or shop has been increased and there is no automatic increase in the fair rent, on account of such increase in the payment of taxes, etc. in such a case tenant can not escape from the liability to pay such additional amount of rent.
3. Sub-section (1) Clause (c):-Fixation of fair rent due to addition, improvement or alteration
Another ground entitling a landlord to higher rent during the currency of the fair rent is incorporated in this Sub clause. The clause enacts that if during the currency of the fair rent, payable in respect of any house or shop, the landlord has made any alteration, addition or improvement in the house or shop the fair rent can be increased up to certain limits. This increase
would be subject to certain conditions.
They are:-
i. It should not be a tenantable repairs.
ii. Such alteration, addition or improvement must be made on the written request of the
tenant when the house or shop is in the occupation of the tenant.
When such alteration, addition or improvements fulfill the above mentioned requirements
then the fair rent is to be increased by adding ten per centum of the cost of such
alteration, addition or improvement for the whole tenancy year.
4. Sub-section (1) Clause (d):- fixation of fair rent due to supply of furniture for use of tenant:
Another ground which entitles a landlord to claim the increase in the rent during the
currency of fair rent has been provided in this clause. According to this clause in case a landlord had supplied any furniture for use of tenant in the demised house or shop, it is permissible for the landlord to claim increase in the rate of existing fair rent under the Act. The additional amount
added to fair rent payable by the tenant in one year is subject to 10 percent of the price of the said furniture from the date the furniture was supplied to the tenant. This addition amount to the fair rent would be payable by the tenant in equal installments.
5. Sub-section (1) Clause (f):- Fixation of fair rent when the house or shop was constructed after the last day of Chet, 2005 Samvat:
This clause of Section 8(1) is applicable to such houses or shops which have been wholly or substantially constructed after the last day of Chet, 2005 Samvat. In such cases Controller has to fix the fair rent not in accordance with the Schedule A but he has to fix the rent on the basis of the cost of construction of the premises. While determining the fair rent of the premises which have been wholly or substantially constructed after the last day of Chet,2005 Samvat the following factors have to be taken into consideration by the Controller;
I. Reasonable cost of construction of the house or shop.
II. Reasonable price of the land included in the house or shop on the date of its construction.
III. Prevailing rate of rent in the locality for similar accommodations.
6. Sub-section (1) Clause (g):- Residuary powers of the Controller to fix fair rent;
The Controller is required to determine the fair rent of any house or shop primarily under one or other clauses (a) to (f) of Section 8(1). In case none of these clauses are applicable to a house or shop for fixing the fair rent , then clause (g) of Section 8(1) of the Act empowers the Controller
to determine the fair rent of a house or shop at a rate which he consider to be fair and reasonable rent.
7. Sub-section (1) Clause (h); Fixation of fair rent where amount of rent is in dispute:
Lastly, whenever there is a dispute between the landlord and the tenant regarding the amount of the rent payable, the Controller assumes the jurisdiction to settle the fair rent of the house or shop.
Section 9 of the Act provides the date on which fair rent fixed by the Controller takes effect.
According to this Section the rent fixed by the Controller generally takes effect from the next months from the date of application. If in the opinion of Controller it has to take effect from any earlier or later date then the Controller has to record in writing. However, the rent fixed on the ground of increase of Municipal taxes, rates or cesses, or on the ground of alteration, improvement or rebuilding or supply of furniture to the use of tenant in the hose or shop, then it
shall take effect from the next month of such increase of Municipal taxes, rates or cesses, or alteration, improvement or rebuilding or supply of furniture or from the date which the Controller otherwise specify in his order. It is to be noted that the Controller in every case of fixation of fair rent has to specify the date from which the fixed rent shall take effect.
Section 10 ;-
Section 10 of the Act prohibits the landlord to claim rent from the tenant at a rate different from the agreed rate of rent at the time of the execution of contract. So the section does not bar any mutual agreement between the landlord and tenant from increasing the contractual rent,
provided no fair rent had been fixed by the Controller under the Act. Once the fair rent has been fixed by the Controller in accordance with the provision of the Act, both the landlord and the tenant are bound to accept the rent so fixed.
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