LAND LAW MODULE 5 NOTES
Tamil Nadu Buildings (Lease & Rent Control) Act, 1960
1. OBJECT & PURPOSE OF THE ACT
- Regulates letting of buildings, fixation of fair rent, and eviction of tenants.
- Prevents exploitation of tenants through excessive rent or arbitrary eviction.
- Ensures reasonable returns to landlords through a fair rent system.
2. IMPORTANT DEFINITIONS (Section 2)
Key Points:
- Tenant includes legal heirs after the tenant’s death.
- Landlord includes persons receiving rent or entitled to receive it.
- Building includes residential and non-residential structures.
S. Rajeswari v. S.N. Kulasekaran (1992) 1 SCC 258
Legal heirs are “tenants” under the Act. Therefore, Tenancy continues even after the tenant’s
death.
3. NOTICE OF VACANCY (Section 3)
- Landlord/tenant must inform the authorized officer when the building becomes vacant.
- Government may allot the premises or release it back to the landlord.
4. FAIR RENT (Section 4)
- Either landlord or tenant may apply to fix fair rent.
- 9% gross return for residential buildings.
- 12% gross return for non-residential buildings.
- Market value includes land value + construction cost + amenities.
Metalware & Co. v. Bansilal (1979) 3 SCC 398
Fair rent must follow statutory formula and therefore Controller cannot fix rent arbitrarily.
5. RECEIPT OF RENT & DEPOSIT OF RENT (Sections 8–9)
- Landlord must issue receipt for rent/advance.
- If landlord refuses rent, tenant may deposit it before Controller.
E. Palanisamy v. Palanisamy (2003) 1 SCC 123
Deposit of rent is valid tender. Tenant is safe from claim of “willful default” if rent is deposited.
6. EVICTION OF TENANTS (Section 10)
Major Grounds for eviction:
- Wilful default
- Subletting
- Change of user
- Acts of waste
- Denial of landlord’s title
- Landlord’s bona fide requirement
- Demolition and reconstruction
S. Sundaram Pillai v. V.R. Pattabhiraman (1985) 1 SCC 591
Wilful default = deliberate, conscious failure to pay rent.
8. APPEALS & REVISIONS (Sections 18 & 25)
- Controller → Appellate Authority (appeal)
Tamil Nadu Apartment Ownership Act, 1994
1. Apartment recognized as heritable and transferable immovable property (S.4)
Every apartment, together with its undivided interest in common areas and facilities, is
considered immovable property, which can be transferred, sold, inherited, gifted or mortgaged
like any other property.
2. Ownership consists of two inseparable components (S.5)
Ownership of an apartment includes:
1. Exclusive ownership of the apartment unit, and
2. Undivided share in the common areas and facilities.
The undivided interest in common areas cannot be separated or transferred independently of the
apartment.
3. No partition of common areas (S.6)
Prohibition of partition or division of common areas and facilities. Even if the apartment is
transferred, the undivided share in common areas automatically follows the transfer.
4. Compulsory Deed of Apartment and registration (S.13 & 14)
Section 12 mandates that every apartment owner must execute a Deed of Apartment, containing
complete specifications of the apartment and the owner’s undivided interest.
Section 13 requires that this deed must be registered under the Registration Act, 1908, to ensure
legal validity.
5. Formation of Association of Apartment Owners (S.10)
All apartment owners must form an Association or Society, either under the Tamil Nadu Societies
Registration Act or Co-operative Societies Act.
This Association is responsible for:
Managing and maintaining common areas
Collecting maintenance charges
Enforcing bye-laws and regulating community living
6. Bye-laws for administration (S.16)
Association to frame and adopt bye-laws governing:
Voting rights
Common expenses
Use and maintenance of property
Meetings and dispute settlement
These bye-laws regulate peaceful co-existence and collective administration.
7. Restrictions on alterations (S.7)
Apartment owners cannot make alterations that affect structural safety, external appearance,
walls, floors, roof, terrace, or utility lines, without prior written consent of all owners and the
Association.
8. Encumbrances and mortgages (S.15)
Mortgages or transfers of an individual apartment can be done along with the undivided share in
common [Link], common areas cannot be mortgaged independently.
9. Insurance of building (S.17)
Under Section 17, the Association must insure the building against hazards like fire, flood,
lightning, earthquake, and other risks.
Insurance premiums are considered common expenses.
10. Liability for common expenses (S.18)
Every apartment owner is liable to contribute proportionately to:
Common repair and maintenance
Insurance charges
Administrative and legal expenses
Failure to pay may result in a charge on the apartment.
Nahalchand Laloochand Pvt. Ltd. v. Panchali Co-operative Housing Society Ltd. (2010) –
Supreme Court held that parking spaces and common areas cannot be sold separately. (Supports
Sections 6 and 5)
DLF Ltd. v. Manmohan Lowe (2014) 12 SCC 231
The Court emphasized that registration of the Deed of Apartment is mandatory and protects the
legal title and transferability of apartments.