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Landlords Can Evict Shop Tenants In Delhi: SC, 50-Yr-Old Law Protecting Tenants Goes


By Sumit Kumar, Section Real Estate
Posted on Fri Apr 18, 2008 at 03:22:08 AM EST

For 50 years, tenants in shops and commercial premises in many prime areas of Delhi have had the upper hand over landlords. They lived without fear of eviction and paid a paltry rent as they were protected by laws that froze the amount negotiated decades ago.

This special protection was because the law said that a tenant could be asked to vacate only residential premises, and not commercial property even if the premises were required for personal use. But all this has changed.

RENT CONTROL

  • Delhi Rent Control Act allowed landlord to seek eviction of tenant only from residential premises for personal need
  • SC allows landlords to evict tenants from commercial premises too on the same ground
  • Court removes `residential' from relevant section of Delhi Rent Control Act, making it applicable to all rented premises
  • This will help landlords evict tenants who pay a paltry rent in prime commercial areas like CP, Karol Bagh, South Extension and Walled City
  • Earlier, traders' lobby had forced the government to put Delhi Rent Control Act, 1995, which had a similar provision, in deep freeze

The Supreme Court has given a judgment that changes a 50-year-old law and would help landlords evict tenants in prime commercial zones like Connaught Place, Karol Bagh, South Extension and Walled City who, in most cases, have been paying a few hundred rupees as rent for decades.

The rent law -- Delhi Rent Control Act, 1958 -- was a handicap for the landlord as he could seek eviction of the tenant only from residential premises, that too provided he proved this was required for his personal need.

Removing this anomaly and striking down the differential approach in law, a Supreme Court bench comprising Justices B N Agrawal and G S Singhvi said landlords could now seek eviction of tenants from residential as well as commercial premises on the ground of proven personal need.

Through the judgment, the court came to the rescue of the family of a landlady who wanted to demolish the premises, part of which was let out for shops. She wanted to build a new structure to accommodate a family growing in size over the years.

Source: Times News Network, April-18-2008

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