The Ministry of Housing and Urban Affairs (MoHUA) on June 2, 2021, introduced the Model Tenancy Act (MTA) to promote efficiency and transparency in rental agreements through quasi-judicial bodies. The MTA balances the interests of landlords and tenants by providing a timely resolution mechanism for disputes. This is achieved through the establishment of bodies, such as rent authorities, rent courts or rent tribunals, depending on the requirements. Learn about the role of a rent court and its process in resolving tenant-landlord conflicts.
What is a rent court?
A rent court, as outlined in the Draft Model Tenancy Act, 2019, is established by any state or union territory to address legal issues related to real estate. Rent courts resolve various rental disputes between tenants and property owners. The court comprises two members and a presiding officer appointed by the respective UT/state government in consultation with the High Court. To be eligible for the position of a presiding officer or a member of a rent court, one must be a member of the state’s higher judicial service. The presiding officer of one rent court may serve in the same capacity for another rent court, provided the UT/state government, after consulting with the High Court, grants such authorisation.
How many rent courts are there?
The act permits union territory and state governments to establish as many rent courts as necessary within their jurisdictions. If a rent court exists under another law in a UT/state, it can be designated as a rent court under the Model Tenancy Act, 2021. If no such court exists, any court established under a different law can be deemed a rent court under the Tenancy Act. If more than two rent courts are set up in a particular region, the respective government can issue orders to manage the distribution of cases among them.
How does a rent court function?
Rent courts are authorised to hear and resolve rental disputes between tenants and landlords. To perform its duties under the MTA, 2021, a rent court possesses the same powers as a civil court under the Code of Civil Procedure, 1908. However, issues related to ownership and the title of the premises fall outside the rent court’s jurisdiction.
A complainant can file a case with the rent court, which must be heard within 30 days of receiving the application. If the court cannot hear the case within this time, it must document the reasons in writing. If a party is dissatisfied with the rent court’s decision, they can appeal to the rent tribunal. The tribunal is required to set a hearing date and resolve the appeal within 30–120 days of receiving it. The rent tribunal has the authority to uphold, modify or overturn the rent court’s decision.
Dispute settlement by rent court: Rules and regulations
The MTA provides an effective framework for resolving tenant-landlord disputes. It enables rent courts, rent authorities and tribunals to handle these cases instead of traditional civil courts. There are, however, certain rules and regulations that must be followed. Under the MTA, the state government can designate district judges or additional district judges as the state’s rent tribunals. These tribunals hear appeals against decisions made by rent courts and rent authorities, serving as the highest authority in tenancy-related disputes.
The tribunal, along with rent courts and rent authorities, has the power to enforce a tenant’s eviction if they violate the terms of their tenancy agreement. The Act sets a 60-day deadline for adjudicating appeals related to non-payment of rent and tenant evictions. The MTA limits the tribunal to granting no more than three adjournments at the request of either party during the proceedings.
How are the rent court’s orders executed?
After all the hearings, a rent court issues a final order using one or more of the following methods:
- The individual in whose favour the decision is made is granted possession (without any title change) of the property.
- The bank accounts of the individual against whom the decision is made may be attached, specifying the amount to be paid.
- An advocate or another qualified individual from the local administration, local body or the rent court is appointed to oversee the execution of the court’s final order.
Importance of rent court
- Speedy resolution of disputes: Rent courts are designed to resolve cases quickly, typically within 60 days. This is a major improvement over the traditional court system where disputes can take years to be settled.
- Simplified process: The rent court system simplifies the dispute resolution process with a single point of contact for filing complaints. Proceedings are conducted in a language understood by both parties, making the process accessible and less intimidating for tenants and landlords who may be unfamiliar with the legal system.
- Expertise in rental disputes: Judges in rent courts specialise in rental disputes. They are trained to handle issues related to rental agreements, security deposits, lease agreements and evictions. Their expertise ensures that cases are managed efficiently and effectively.
- Binding decisions: Decisions made by rent courts are binding and enforceable, meaning both parties are legally required to comply. This provides a definitive resolution.
- Cost-effective: The rent court system is cost-effective for both landlords and tenants. Filing fees are minimal and the expedited process reduces legal fees, allowing disputes to be resolved quickly and efficiently.
Housing.com POV
Rent courts established under the Model Tenancy Act, 2021, play a crucial role in resolving disputes between tenants and landlords. Introduced by the Ministry of Housing and Urban Affairs to enhance transparency and efficiency in rental agreements, these courts provide a dedicated platform for adjudicating rental conflicts. With the ability to appoint qualified judicial members and enforce binding decisions, rent courts ensure equitable resolutions within a streamlined timeframe. Their expertise in rental matters, coupled with a simplified process and cost-effective approach, makes them instrumental in fostering a fair and accessible environment for resolving tenancy disputes promptly across jurisdictions.
FAQs
What is the purpose of a rent court under the Model Tenancy Act, 2021?
Rent courts resolve disputes between tenants and landlords efficiently and transparently. They provide a specialised forum for adjudicating rental disagreements under the framework of the Model Tenancy Act, ensuring timely resolutions.
How quickly can a case be resolved in a rent court?
Rent courts aim to resolve cases within 60 days from the date of filing. This expedited process contrasts with traditional civil courts where similar disputes take considerably longer to conclude.
Who can appeal a decision made by a rent court?
Any party dissatisfied with the decision of a rent court can appeal to the rent tribunal. The tribunal, comprised of designated judicial members, serves as the appellate authority for decisions made by both rent courts and rent authorities.
What types of disputes can be heard in a rent court?
Rent courts have jurisdiction over various rental disputes, including issues related to non-payment of rent, eviction notices, lease agreements and security deposits. However, matters concerning ownership or title to property fall outside their purview.
How are decisions made by rent courts enforced?
Upon concluding hearings, rent courts issue enforceable orders. These may grant possession of the property to the prevailing party, attach the bank accounts of the liable party for payment or appoint an administrator to oversee execution. This ensures compliance with the court’s rulings.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |
