Project report on land and rent laws

Index
Table Of Contents

Page .No.

1. Applicability of the act

2. Section 3

5-7

3. Section 4

8-9

4. Section 5

10-13

Applicability , Section 4,5 Of P.R.A

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Applicability Of The Act

The applicability of the is given under the section 1 and 3 of the Punjab rent act
2012. Section 1 of the act is as follows
1.
(1) This Act may be called the Punjab Rent Act, 1995.
(2) It extends to all urban areas of Punjab, but nothing herein contained shall be
deemed to affect the regulation of house accommodation in any cantonment area.
(3) It shall be applicable to all the residential and non-residential buildings.
(4) It shall come into force on such date as the State Government may specify in
this behalf in the Official Gazette.
The act is applicable in Punjab. It extends to all the urban areas in Punjab but is not
applicable to any housing accommodation in any cantonment area in state. It
applicable to both residential and non residential properties
The act came in force on 30.11.2013. this act doesnt have any retrospective effect.
It is applicable only to those buildings or properties which were rented after the
commencement of this act.
This act repeals the Punjab rent restriction act 1959

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Certain Provisions Not To Apply To Premises

3. (1) Nothing in this Act shall apply;(a) to any premises let out before the commencement of the act.
(b) to any premises belonging or let out to the State Government or the
Government of India or a local authority;
(c) to any premises constructed on or after, the commencement of this act for a
period of fifteen years from the date of completion of such construction;
Explanation I.- The expression date of completion of construction as used
in Clause (d) above shall mean the date of completion as intimated to the
concerned authority or of assessment to property tax, whichever is earlier,
and, where the premises have been constructed in stages, the date on which
the initial building was completed and an intimation thereof was sent to the
concerned authority or was assessed to property tax, whichever is earlier
Explanation IV.- The expression premises constructed, as used in clause
(d) above shall includei. re-building of more than seventy five per cent of an existing
building; and (ii) additional construction to an existing building.
(d) to any premises let out to citizen of a foreign country or an embassy, high
commission, legation or commission of a foreign State or such international
organisation as may be specified by the State Government by notification in
the Official Gazette;(e) to any premises belonging to such religious, charitable or educational trust
or class of trusts as may be specified by the Government in the Official
Gazette;
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(f) to any premises let out by a hire-purchaser, lessee or sub lessee ( by
whatever name called), who has been allotted such premises by the Punjab
urban development authority or any local authority by way of an agreement
of an hire purchase, lease or sub lease, or even before the full ownership
rights accrue to such hire-purchaser, lessee or sub lessee, as the case may be.
(2) For non-residential premises, contract renting shall be admissible during the
subsisting of period contracted in this regard. Such premises shall be governed by
the conditions of the contract and litigation under any other law shall not be
permissible. A landlord violating the conditions laid down in the contract and
agreed to by the two parties shall not be entitled for rent for the period of violation
and if the tenant violates the conditions, he shall be liable to pay double the rent for
the period in question, in addition to immediate dispossession through the Rent
Authority.
This section contains the provisions regarding the premises which are exempted
from the operation of the act. It is not applicable to the premises which are rented
out before the commencement of the act.
Any premises which are being rented by the state government or the central
government or which belong to one of these are exempted from this act.
Any premises which is constructed after the commencement of this act is
exempted, for the period of fifteen years from the date of completion. The
expression date of completion of construction shall mean the date of completion
as intimated to the concerned authority or of assessment to property tax, whichever
is earlier, and, where the premises have been constructed in stages, the date on
which the initial building was completed and an intimation thereof was sent to the
concerned authority or was assessed to property tax, whichever is earlier. It may

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also include the builing of which 75% of part is rebuilt or there is an additional
construction to the current building.
Any premises, which is let out to citizens of the foreign countries, embassies, high
commission, or any other int5ernational organisation as may be specified by the
state government by notification in the official gazette, is not bound by this act.
This act is also not applicable to the premises belonging to any religious, charitable
or educational or class of trust or as may be specified by the state government by
official notification in state gazette.
If any premises is let by a hire purchaser, lessee or sub-lessee and has been allotted
such premises by the Punjab urban development authority or by any local authority
by the way hire purchase, lessee or sub lessee.
For the purpose of the non residential premises if there is any kind of contract
made in between the parties then such premises shall be governed by the
conditions of the contract and litigation under any other law shall not be
permissible. If a land lord violates any conditions under the contract then he shall
not be entitled to any rent as agreed by the parties and if the tenant violates the
terms of the contract then he shall be liable for the double rent for that period and
in addition to immediate dispossession of the property by the rent authorities

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Section 4- Registration Of Tenancy Agreement

1. Notwithstanding anything contained in Section 107 of the Registration of

Transfer of Property Act, 1882, no person shall, after the commencement of
this Act, let or take on rent any premises except by an agreement in writing.
2. Notwithstanding anything contained in registration act,1908(16 of 1908),
every agreement referred to in sub- section (1) shall be in form specified
under schedule 1 appended to this act and shall be registered under and in
accordance with the provisions of the registration act 1908 by the authority
specified there under, on the payment of registration fee of rupees one
thousand
After the commencement of the act it is made compulsory that any premises is let
or taken on rent shall be an agreement in writing.
Every agreement of letting out or taking of rent shall be registered and which
agreement will be in the form specified in schedule I appended to this act and shall
be registered under the registration act 1908
The registration of the above said agreement shall be done on the payment of the
registration fee of rupees 1000 only to the local rent authority of the area
concerned.
According to the section 4(1) of this act the provisions of section 107 of the
transfer of property act 1882 are not applicable to this act. The Punjab rent act
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eliminates any kinds of requirement and makes every kind of leasing of immovable
property to be registered irrespective of the duration of lease and the amount of
lease. As the section 107 contained a provision of oral agreement of leasing of the
immovable property if the duration was less than one year.
Oral tenancy which is permissible under the provisions of the section 107 of
transfer of property act was declared not to be applicable by the provisions of the
section 4 of this act

Various Essentials Of The Agreement

According to the schedule I of the act following content should be there in the
agreement Name of the land lord and the tenant
Address of the tenant and the land lord
Period of tenancy
Amount of rent
Maintenance charges to be paid alongside rent
Any advance paid to the tenant
Agreement on Date of handing over of possession on due date
Date of payment of rent and other charges
Details of the premises
The water bills and the electricity bills to be paid by the tenant
Increment in rent

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Inheritability Of Tenancy- Section 5

1) In the event of death of a tenant, the right of tenancy shall devolve for a period
of ten years from the date of his death to his successors in the following order,
namely:
(a) Spouse;
(b) Son or daughter or where there are both son and daughter both of
them;
(c) Parents ; and
(d) Daughter-in-law, being the widow of his pre-deceased son:
Provided that the successor has ordinarily been living in the premises with the
deceased tenant as a member of his family up to the date of his death and was
dependent on the deceased tenant.
Provided further that a right to tenancy shall not devolve upon a successor in
case such successor or his spouse or any of his dependent son or daughter is .
owning or occupying a residential premises in the same urban area.
2) If a person, being a successor specified in sub-section (1), was ordinarily living
in the premises with the deceased tanent but was not dependent on his on the
date of his death, or he or his spouse or any of his dependent son or daughter is
owning or occupying a residential premises in the same urban area, such
successor shall acquire a right to continue in possession as a tenant for a limited
period of one year from the date of death of the tenant and, on the expiry of that

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period, or on his death, whichever is earlier, the right of such successor to
continue in possession of the premises shall become extinguished.
Explanation.- For the removal of doubts, it is hereby declared that
(a) Where, by reason of sub-section (2), the right of any successor to
continue in possession of the premises become a extinguished,
such extinguishment shall not effect the right of any other
successor of the same category to continue in possession of the
premises but if there is no other successor of the same category, the
right to continue in possession of the premises, shall not, on such
extinguishment, pass on to any other successor specified in any
lower category or categories, as the case may be .
(b) the right of eveiy successor, referred to in sub-section (1) to
continue in possession of the premises shall be personal to him and
shall not, on the death of such successor, develove on any of his
heirs.
3) Nothing in sub-section (1) or sub-section (2) shall apply to a non-residential
premises and the vacant possession of such premises shall be delivered to the
landlord within one year;
I.
II.

of the death of the tenant, in case the tanent is an individual;

of the dissolution of the firm, in case the tenant is a firm;

Explanation.-If all partners of the firm as on the date of hiring the premises
leave the firm it shall be deemed that the firm stands dissolved.
(iii) of the winding up of the company, in case the tenant is a company, as
defined in the Companies Act, 1956.
(iv) of the dissolution of the corporate body other than a company in case the
tenant is such a corporate body.

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Section 5 of the act deals with the inheritability of the tenancy in the case of the
death of the tenant.
If a tenant dies the right of tenancy shall devolve for the period of ten yer=ars
from the date of death of tenant to his successors in the following manner
namely
a. Spouse
b. Son or daughter or both of them
c. Parents
d. Daughter in law, being the widow of his predeceased son
But according to the provisions of the sub section 1 the successor shall be residing
with the deceased tenant in the demised premises as a member of his family and
shall be dependent on the deceased. Further he shall not own any kind of
residential premises in that same urban area.
According to the subsection (2) of the section 5, if the successor was not dependant
on tenant date of his death or he is owning a residential area in the same urban area
, such successor shall have right to the tenancy of the premises for the limited
period of one year from the date of death. O the date of completion of one year or
his death whichever is earlier the right shall be extinguished. If the right to
continue as the tenant ceases then it shall not affect the right of the other successors
of the same category but on any such extinguishment the right shall not pass to any
successor categorised in any of the lower category.
The right given in the sub section (1) is personal to the successor and shall not
upon the death of such successor shall to any of his heirs.

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According

to

the

sub

section

(3),

the

provision

of

sub-section

(1) and (2) shall not apply to the non residential premises and the vacant
possession such premises with one year on The death of the tenant, in case in he is individual
In case of the dissolution of the firm if the tenant is any firm. If all the
partners on the date of hiring the premises leave the firm, it shall be deemed
to be dissolved
In the case the tenant is a company then on winding up of that company the
tenancy shall cease
In case the tenant is a corporate body then at the time of the dissolution of
the corporate body

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