Once a Tenant; Always a Tenant

Introduction:

Let’s start with an example; Akash was living in a 2BHK as a tenant for 12 years paying his rent timely. After a year his owner, Rahul shifted to Dubai, and because of it Akash thought that he is no more a tenant, the ownership has been transferred to him, same year Rahul asked Akash to pay the monthly rent as before he used to pay but he denied. With the same cause, Rahul went to a lawyer Rajat, to ask whether the ownership gets transferred to a tenant who is living in the same house for 10-12years because this was the justification given by the Akash, his tenant. A very straight forward answer given by Rajat was NO because once a tenant is always a tenant until and unless ownership gets transferred legally.

Whos is a Tenant?

According to laws, tenants are also known as lessee, a person who holds or possesses lands, tenements, or personality of another, usually for rent for a particular time is known as tenants. An occupant or inhabitants of any place are known as tenants too.

The Landlord-Tenant Relationship

A lease contract between lessor and lessee, build the same relationship as landlord and tenant. The landlord is also known as the lessor and the tenant is known as the lessee, the lessor owns the property and charges rent from the lessee to use it. 

A Landlord-tenant relationship is a bit agitated, characterized by a conflict of interest, bitter conversations, and even legal battles. So, before letting out/in a property, it is obligatory for the landlord as well as for tenant to take the cautious approach, to sign in a lease contract.

With this relationship come certain rights and responsibilities, so it is important that both parties fully understand what is expected from them.[1]

Rights and Responsibilities of Landlord

1. The landlord has all the right for early eviction of the tenant if the tenant is sub-letting the rental property without permission.
2. The landlord has all the right for early eviction of the tenant in case of breach of the Rental Agreement.
3. The landlord has all the right for early eviction of the tenant if there is an obstruction in payment.
4. The landlord has all the right for early eviction of the tenant if there is an execution of any illegal activities on the property
5. The landlord has all the right for early eviction of the tenant if they are exploiting property.
6. The landlord can collect the security deposit from the tenant, at the time of renting out the property.[2] 
7. It’s the right of the landlord to choose who will stay on the property, which they are planning to rent out.
8. It’s the right of the landlord to receive the rent on the first date of each month unless the date has been changed by mutual consent.

One of the most important responsibilities of a landlord is to make sure that a rental property is safe for habitation before the tenants move in. Another responsibility is to maintain the habitable condition of the property with regular repair and maintenance even after the tenants move in.   

And also he should fulfill all his promises made while signing the lease. 

Rights and Responsibilities of Tenants

1. Right to deny an oral agreement
2. Right to not leave the premises, the landlord can’t ask to leave the premises until and unless there is any valid reason.
3. The right to receive back the security deposit.
4. Right to say no to the extension of rent, if the landlord doesn’t mention it at the time of the agreement. 
5. The right to access essential services like water, electricity, etc.
6. Right to say no to illegal liabilities.[3] 

The responsibilities of the tenant are to pay the rent timely as agreed while signing the lease contract. They should follow all the terms and conditions mentioned by the landlord while signing the lease. Tenants are also not allowed to threaten, obstruct, constrain, harass, or interfere with the landlord. And if the property needs any urgent repair or maintenance then it should be informed immediately to the landlord.[4]

Now, what does “once a tenant always a tenant” states?

This states, that in no situation, a tenant can claim ownership until and unless it has been transferred or the status is been changed by contract or operation of law and if a tenant denies paying the rent then at the very same time you can file an eviction petition against the tenant. 

The Laws regulating Tenant’s Rights

Landlord-tenant law governs the hire of commercial and residential property; we do have state statutes and common law. Several states have based their statutory law on either the Uniform Residential Landlord or Tenant Act (URLTA) or the Model Residential Landlord-Tenant Code.

In India, we have Tenancy Act, the Model Tenancy Act 2019, a recent draft which aims towards cover on security deposits at two months’ rent for housing and one month’s rent for other properties. From this one of the biggest fears of property owners who do not want to risk letting out their properties in India will be on rest.

In India, we too have a Rent Control Act, which every state has their own. 

Rent Control Act the aim of the Government of India behind this wasto eliminate the exploitation of tenants by landlords. Rent legislation aims to provide payment of fair rent to landlords and the protection of tenants against eviction.

A brief description of the Rent Control Act of few states is listed below:

1. Delhi Rent Control, 1958

Delhi Rent Control received the approval of the President on the 31st December 1958. It’s an Act which deals with the control of the rents and evictions and the rates of hotels and lodging houses, and for the lease of vacant premises to the Government, in certain areas of Delhi. It has in total of 8 chapters, 2 Schedules, and 57 sections.[5] 

2. Maharashtra Rent Control Act, 1999

Maharashtra Rent Control Act was enforced on 31st March 2000. It’s an Act which aims to unify, consolidate and amend the law relating to the control of rent and repairs of certain premises and the eviction and for encouraging the construction of new houses by assuring a fair return on the investment by landlords and to provide for the matters connected with the purposes aforesaid. It has in total of 9 chapters and 60 sections.[6]

3. The West Bengal Premises Tenancy Act, 1997

The West Bengal Premises Tenancy Act aims to provide the regulation of certain incidents of tenancy of premises in Calcutta, Howrah, and some other areas in West Bengal. It has in total of 12 chapters, 3 Schedules, and 47 sections.[7] 

4. The Tamil Nadu Buildings (Lease and Rent Control) Act, 1960

The Tamil Nadu Buildings (Lease and Rent Control) Act received the approval of the President on the 24th of September 1960. It’s an Act that aims to amend and consolidate the law relating to the regulations of the letting of residential and non-residential buildings and the control of rents of such premises and the prevention of unreasonable eviction of tenants therefrom in the state of Tamil Nadu.[8] 

International Perspective

In Scotland there is the Private Housing (Tenancies) (Scotland) Act 2016, regulating tenancy. This provides security, stability, and predictability for tenants and appropriate safeguards for landlords, lenders, or investors.

In the United Kingdom, the Landlord and Tenant Act 1954 exist as an act which extends to England and Whales. Part I of the act, usually deals with the protection of residential tenancies, which has been replaced now. Part II of the act is a statutory code that governs business tenancies.

In Canada, domestic house owners and tenants disputes which are majorly based on property and contracts are governed under provincial laws instead of federal laws. There are few departments that have established the laws regarding maximum rent a landlord can charge, known as rent regulations and also related to eviction. 

  Illustrations:

• A was the tenant living in B’s house. After 18 years A decided to claim ownership of B’s house, thinking that it’s been so long living in this house and some of the other way it’s his home itself. Therefore A went to B claiming that he is now the new owner of this property and won’t be paying rent anymore. After listening to it B filed an eviction against A and the judgment was even in the favor of B because none of the act or statute states that, living for so long as a tenant in someone’s property results in ownership. No time limits can transfer ownership until and unless there is any contract or operation of laws.
• A took a shop on lease from B for his own business but somehow after a year, B wanted his shop back to start his very own business. Denying to it A being a tenant filed a case against B the landlord stating that B already has his own job and has no bona fide need. But the court held that the tenant has no right to deny leaving the rental building stating that the landlord has no bona fide need.

Case Laws

• In the Hukumchandra (D) Thru Lrs. vs. Nemi Chand Jain, 11 March 2019 it was held by the Supreme Court of India that a tenant has no right to refuse to vacate/ leave a rented building claiming that his landlord or family has another job or business and is in no bona fide need of the property. By the Judgment dated 14.12.2018 the Supreme Court dismissed the appeal filed by the appellant-tenant and granted him three months’ time to vacate and handover the peaceful possession of the suit property.[9]
• In the case Vinay Eknath Lad vs. Chiu Mao Chen, 18 December 2019, it was held by the Supreme Court of India that “In the absence of attornment or public notice of dissolution, the defendant had knowing knowledge of change of landlord of the subject-premises from partnership firm to a co-ownership firm. It admittedly was not the defendant’s landlord at the time of commencement of the lease. Thus, the identity of the owner stood altered, though the seventeen people continued to work an underneath identical trade name.” In this judgment Supreme Court of India also carved out the exception of “Once a tenant always a tenant”.[10] 
• In this case, M.R Sahni v. Doris Randhawa AIR 2008 Delhi 110, the courtheld ex-facie, once a tenant always remains tenant, unless the status changes by the contract or by the operation of law. The principle, once a tenant always a tenant can also be supplicated in this respect.
• In Abdul Hakim Mia v. Pana Mia Miaji AIR 1919 Calcutta 293 (DB), it was held that the possession of the lessee cannot be altered and that if the plaintiff induces the tenant into possession, obviously the character of the possession could not be altered, without the consent of the plaintiff. 
• Similarly, In case, M. Mujibar Rahaman v. Isub Surati AIR 1928 Calcutta 546 followed in Sanapathi Sitharamiah v. Nandarapu Ramaswamy AIR 1938 Madras 73 it was held that estoppels under section 116 of the evidence act, 1881 continues, even after the expiration of the period of the lease and unless the Tenant openly surrenders possession he is obstructed from contesting the title of the landlord. 
• In Gurcharan Singh v. Mukhtiar Singh 2010 SCC Online P&H 4757, The High Court of Punjab & Haryana held that a tenant in possession of the property cannot set up a title by adverse possession given in section 116 of the evidence act, challenging the title of the owner/landlord of the property in dispute and that the principle of once a tenant always a tenant would apply.

Conclusion

Once a tenant always a tenant; this concept is somehow acceptable until and unless this principle is not being misused or violated. The absence of this principle will be troublesome to the landowners. Till now, whatever case laws and questions we have gone through are only based on the time period which has been mentioned above. So keeping these in mind the principle of “once a tenant always a tenant” is absolutely demanded in this era for the smooth flow. In fact, instead of all this, people should highly work on maintaining the landlord-tenant relationship; a healthy relationship won’t create any inconvenience.

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References:

[1] Shetty, Adhil. “The Landlord-Tenant Relationship.” @businessline, www.thehindubusinessline.com/news/real-estate/The-landlord-tenant-relationship/article20681015.ece. Accessed 11 Sept. 2020.

[2] Iamcheated. “Landlord Rights In India.” Iamcheated.Indianmoney.Com, 12 Sept. 2020, iamcheated.indianmoney.com/blogs/landlord-rights-in-india. Accessed 11 Sept. 2020.

[3] Iamcheated. “Rights Of Tenants In India.” Iamcheated.Indianmoney.Com, 12 Sept. 2020, iamcheated.indianmoney.com/blogs/rights-of-tenants-in-india. Accessed 11 Sept. 2020.

[4] tbradleybanta. “The Law and the Landlord-Tenant Relationship.” Theresa Bradley-Banta Real Estate Consultancy, 2 Aug. 2016, theresabradleybanta.com/law-landlord-tenant-relationship/.

[5] (The Gazette of India EXTRAORDINARY PART II-Section 1 PUBLISHED BY AUTHORITY)

[6] (THE MAHARASHTRA RENT CONTROL ACT)

[7] THE WEST BENGALPREMISES TENANCY ACT, 1997. www.hooghly.gov.in/dllro/pdf/W.B%20PREMISES%20TENANCY%20ACT,1997.pdf.

[8] “Tamil Nadu Buildings (Lease and Rent Control) Act, 1960.” Www.Bareactslive.Com, www.bareactslive.com/TN/tn109.htm. Accessed 11 Sept. 2020.

[9] “SC Carves out an Exception to ‘Once a Tenant, Always a Tenant’ Principle, Rules, Sec.116 Evi. Act Has Limited Application on Derivative Titles. [Read the Judgement].” Latest Laws, www.latestlaws.com/latest-news/sc-carves-out-an-exception-in-once-a-tenant-always-a-tenant-principle-rules-sec-116-evi-act-has-limited-application-on-derivative-titles-read-the-judgement/. Accessed 6 Sept. 2020.

[10] Correspondent, Legal. “Supreme Court Comes to the Rescue of the Landlord.” The Hindu, 21 Dec. 2018, www.thehindu.com/news/national/supreme-court-comes-to-the-rescue-of-landlord/article25802048.ece. Accessed 6 Sept. 2020.