MP Accommodation Control Act 1961 Download PDF

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Updated On : June 25, 2024

Overview: MP Accommodation Control Act of 1961 is one of the important subjects for MPCJ Examination. In the latest updated syllabus of MPCJ examination 2023 the weightage of MP Accommodation Control Act of 1961 is of 5 marks in prelims examination. For your comprehensive preparation, you need to ensure that you read the enitre act properly while understanding the concepts as well.

In this article we will cover:

Overview of the MP Accommodation Control Act 1961 for Judiciary.
Important Sections of the Act.
MP Accommodation Control Act 1961 PDF Notes
Landmark Judgements

Overview of the MP Accommodation Act for Judiciary

The legislation received the President's assent on December 25, 1961. The Madhya Pradesh Accommodation Control Act, 1961, abbreviated as "The Act," is legislation designed to govern and regulate the rental and leasing of accommodations. It establishes legal provisions for the speedy adjudication of eviction cases based on a landlord's genuine need.

This legislation was initially made public through the Madhya Pradesh Gazette on December 30, 1961. Its primary objectives include overseeing and controlling rental rates for accommodations, ensuring the prompt resolution of eviction cases related to the bona fide requirements of tenants, and addressing other associated matters.

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MP accommodation act aims to:

Regulate and oversee the renting and rental rates of accommodations.
Facilitate the prompt adjudication of eviction cases based on the genuine need of specific categories of landlords.
Govern and manage the eviction of tenants from accommodations, along with other related provisions.
It comprises a total of 6 chapters and 51 sections.

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In MP accommodation act following concepts are discussed:

Exemptions from Chapter Provisions for Specific Accommodations during a Defined Period.
Recovery of Rent Beyond Standard Rent Prohibited.
Prohibition of Unlawful Charges for Claim or Receipt.
Rights and protection of tenants
Determination of Standard Rent.
Legitimate Standard Rent Increment in Specified Cases and Collection of Additional Charges.
Notification of Rent Increment.
Authority for Establishing Standard Rent and Related Matters.
Determination of Interim Rent.

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Important Sections of MP Accommodation Act for Judiciary

For your overall comprehensive preparation you have to ensure that you read the entire act however focus a bit more on the sections mentioned below:

Section 2

Section 3

Section 4 - 6

Section 7 - 10

Section 11

Section 12

Section 13

Section 14

Section 15

Section 16 - 18

Section 23A - 23J

Section 28

Section 29

Section 37

Section 43

Section 44

Section 46

Section 48

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Notes of MP Accommodation Control Act, 1961

Here are short notes on MP Accomodaiton Control Act, 1961:

Section 2 deals with the following:

(a) "Accommodation" encompasses any structure or part thereof, whether designed for residential or non-residential purposes, and comprises:

(i) Any land not utilized for agricultural activities.

(ii) Adjacent garden, premises, garages, and ancillary outbuildings, if any, related to such structure or part thereof.

(iii) Any fixtures affixed to such structure or part thereof to enhance its utility.

(iv) Any furniture provided by the landlord for utilization within such structure or part thereof.

(b) "Landlord" signifies an individual who is presently receiving or entitled to receive rent for any accommodation, whether in their name or on behalf of another person, or in a capacity as a trustee, guardian, or receiver for another person. This definition also includes any person, other than a tenant, who periodically acquires a claim from a landlord.

(d) "Lease" encompasses a sub-lease arrangement.

(e) "Member of the Family," in the case of an individual, refers to their spouse, son, unmarried daughter, father, grandfather, mother, grandmother, brother, unmarried sister, paternal uncle, paternal uncle's wife or widow, or brother's son or unmarried daughter residing together or any other dependent relation.

(f) "Rent Controlling Authority" designates an official appointed under Section 28.

(g) "Repealed Act" denotes the Madhya Pradesh Accommodation Control Act, 1955 (XXIII of 1955), repealed under Section 51.

(h) "Standard Rent" concerning any accommodation refers to the standard rent as mentioned in Section 7 or, when the standard rent has been augmented pursuant to Section 8, such increased rent.

(i) "Tenant" signifies an individual responsible for paying rent for any accommodation or, in the absence of an express or implied contract, would be liable for rent. This definition also includes any person occupying the accommodation as a sub-tenant and any person remaining in possession following the termination of their tenancy, whether before or after the commencement of this Act. However, it excludes individuals against whom an eviction order or decree has been issued.

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Section 3: Exemption of Certain Accommodations from the Application of this Act.

(1) The provisions of this Act shall not be applicable to: (a) accommodations owned by the Government; (b) accommodations owned by a local authority and exclusively used for non-residential purposes.

(2) The Government is authorized, through a notification, to grant exemptions from some or all of the provisions of this Act to accommodations owned by educational, religious, or charitable institutions, as well as nursing or maternity homes, provided that the entirety of the income generated from such accommodations is dedicated to the support and operation of the respective institution or healthcare facility.

Section 4: Non-Application of Chapter Provisions to Specific Accommodations for a Designated Period: The regulations within this Chapter shall not be applicable to any accommodation, or a portion thereof, the construction of which was finalized, either before or after the commencement of this Act, for a period of five years following the date when the completion of such construction was formally communicated to the relevant local authority.

Section 5: Recovery of Rent Beyond Standard Rent Prohibited: (1) Regardless of any agreement to the contrary, no tenant shall be obligated to remit to their landlord any sum surpassing the standard rent prescribed for the accommodation. (2) Any contract stipulating rent exceeding the standard rent shall be interpreted as if it were a contract for payment of the standard rent exclusively.

Section 6: Prohibition of Unauthorized Charges:

(1) Except as provided in this Act, no individual shall demand or receive rent in excess of the standard rent, regardless of any contrary agreement.

(2) In connection with the granting, renewing, or continuing of a tenancy or sub-tenancy of any accommodation, no individual shall: (a) request or receive any sum as a premium, pugree, or any consideration, whether in cash or kind, in addition to the rent; or (b) demand or collect payment exceeding one month's rent for such accommodation as advance rent without prior permission from the Rent Controlling Authority.

(3) It is unlawful for the tenant or any person acting or purporting to act on behalf of the tenant or a sub-tenant to request or receive any payment in exchange for the relinquishment, transfer, or assignment of their tenancy or sub-tenancy, as applicable, for any accommodation.

(4) The provisions of this Section shall not apply to any payment made under an agreement by any person to a landlord for the purpose of financing the construction of the entire or part of any accommodation on land owned by the landlord or taken on lease by the landlord. One of the conditions of the agreement must be that the landlord will lease the whole or part of the accommodation to that person upon completion for the use of that person or any family member. However, such payment shall not exceed the agreed rent amount for a period of five years for the whole or part of the accommodation intended for leasing to such person.

(5) Any payment made under subsection (4) shall be considered an advance rent payment for the relevant period from the tenancy's commencement.

Section 7: Standard Rent Definition: "Standard rent" concerning any accommodation signifies:

(1) Where a competent authority under the repealed Act or under the prevailing legislation prior to the commencement of the repealed Act has fixed a reasonable annual rent or fair rent for the accommodation, the said reasonable annual rent or fair rent shall apply;

(2)(i) In cases where the accommodation was leased on or before January 1, 1948, and no reasonable annual rent or fair rent has been determined, the rent indicated in the Municipal Assessment Register on that date, or the actual rent collected on January 1, 1948, whichever is lower, shall be considered; or

(ii) If the accommodation was not leased before January 1, 1948, the rent listed in the Municipal Assessment Register on that date, or the rent that could have been obtained on January 1, 1948, whichever is lower, shall apply. Additionally:

(a) For residential and educational accommodations, increase by thirty-five percent of such rent;

(b) For other accommodations, increase by seventy percent of such rent;

(c) In cases where the tenant is not responsible for municipal taxes, and there has been an increase in municipal tax since January 1, 1948, an amount equal to that increase shall be added:

However, the increases specified in (a) and (b) are permissible only if the accommodation has been adequately maintained and is fit for habitation.

(3) For accommodations not covered by (1) or (2) above:

(a) If the accommodation is independently assessed for municipal purposes, the annual rent as per the municipal assessment plus fifteen percent thereof shall apply;

(b) If only a portion of the accommodation is assessed, the proportional annual rent for the entire accommodation based on the municipal assessment, plus fifteen percent thereof, shall apply;

(i) The annual rent determined based on the initial agreement between the landlord and tenant when the accommodation was first leased, or if it was not previously leased, the rent at which it could have been leased immediately upon completion of construction; or

(ii) The annual rent computed as 6.75 percent per annum of the combined amount representing the actual construction cost and the market value of the land included in the accommodation at the commencement of construction;

Whichever of the above options results in the lower standard rent shall apply.

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Section 8: Legitimate Standard Rent Increase in Specific Cases and Recovery of Additional Charges

(1) In situations where a landlord, either before the enactment of this Act or subsequently with the written approval of the tenant or the Rent Controlling Authority, has incurred expenses for any improvement, addition, or structural alteration in the accommodation (excluding expenditure on decoration or necessary tenantable repairs), and the cost of such improvement, addition, or alteration has not been factored into the determination of the accommodation's rent, the landlord may lawfully raise the annual standard rent by an amount not exceeding ten percent of the current rent.

(2) If a landlord pays any charges for electricity, water consumption in the accommodation, or any other charges imposed by the local authority having jurisdiction in the area, which are typically payable by the tenant, the landlord can recover the amount paid by him from the tenant. However, the landlord shall not, except as provided in Section 7, recover from the tenant, whether through a rent increase or otherwise, any building or land tax imposed on the accommodation occupied by the tenant. This provision does not affect the tenant's liability under any agreement, whether explicit or implied, to periodically pay such taxes.

Section 9: Notification of Rent Increase: (1) If a landlord intends to raise the rent for any accommodation, the landlord must provide the tenant with a notice of the proposed increase. To the extent that such an increase is legally permissible under this Act, it shall only become payable and recoverable for the tenancy period following thirty days from the date of issuance of the notice. (2) Any notice pursuant to subsection (1) must be in written form, signed by the landlord or on the landlord's behalf, and either sent to the tenant via registered mail with acknowledgment of receipt, tendered or delivered in person to the tenant or a member of the tenant's family or household at the tenant's place of residence, or, if such delivery or tender is not feasible, conspicuously affixed to a part of the accommodation.

Section 10: Rent Controlling Authority's Authority to Establish Standard Rent and More

(1) Upon receiving an application, either from the landlord or the tenant in the prescribed manner, the Rent Controlling Authority shall determine, in respect of any accommodation, either: (i) the standard rent in accordance with the provisions of Section 7; or (ii) any applicable increase as described in Section 8.

(2) When establishing the standard rent for any accommodation or determining its lawful increase, the Rent Controlling Authority shall consider the provisions of Section 7 or Section 8, as well as the specific circumstances of the case, in order to arrive at a reasonable amount.

(3) In cases where part of an accommodation has been lawfully sub-let, the Rent Controlling Authority may also set the standard rent for the sub-let portion.

(4) If, for any reason, it is impractical to determine the standard rent for an accommodation according to the principles outlined in Section 7, the Rent Controlling Authority may establish a rent that is reasonable, considering factors such as the accommodation's location, condition, provided amenities, and the existence of similar accommodations in the vicinity. It should also consider the standard rent for such similar accommodations.

(5) The standard rent shall be established for a twelve-month tenancy. However, if the tenancy is on a monthly basis or for a period less than a month, the standard rent for that tenancy period should be proportional to the annual standard rent based on the length of the tenancy.

(6) When determining the standard rent for any accommodation under this Section, the Rent Controlling Authority shall establish it for an unfurnished state and may also specify an additional charge for furniture supplied by the landlord, which the landlord can legitimately recover from the tenant.

(7) The Rent Controlling Authority, while establishing the standard rent under this Section, shall specify a date from which the established standard rent will be deemed effective. However, this date cannot be earlier than thirty days before the date of the application for standard rent determination.

Section 11: Determination of Temporary Rent Pending Final Decision

In the event of an application being submitted under Section 10 for the establishment of the standard rent or the assessment of a legitimate increase in such rent, the Rent Controlling Authority shall, without delay, issue an interim order stipulating the interim rent amount or lawful increase that the tenant is required to pay to the landlord. Additionally, the Rent Controlling Authority shall designate the date from which the specified interim rent or lawful increase shall be considered effective, all of which will remain in force until a final decision on the application is reached.

Section 12: Restrictions on Tenant Eviction: (1) Contrary to any other law or contract, a civil court cannot initiate a suit for the eviction of a tenant from any accommodation except for the following grounds:

(a) Non-payment or non-tendering of the full rent arrears, as legally recoverable, within two months from the date of the landlord's notice of demand, issued in the prescribed manner.

(b) Unlawful subletting, assignment, or transfer of possession of the entire or part of the accommodation for consideration or otherwise, whether before or after this Act's commencement.

(c) Creating a nuisance or engaging in acts inconsistent with the accommodation's intended use, or actions likely to substantially harm the landlord's interests, provided that using a portion of the accommodation as an office shall not be considered inconsistent with the original purpose of the tenancy.

(d) Non-use of the accommodation for a continuous six-month period immediately prior to the filing of the eviction suit, without reasonable cause.

(e) Genuine need for residential occupancy by the landlord, a family member, or a person for whose benefit the accommodation is held, provided that no other suitable residential accommodation is available in the city or town.

(f) Genuine need for non-residential use by the landlord for business purposes or for their major sons or unmarried daughters, with no other suitable non-residential accommodation available in the city or town.

(g) Requirement of the accommodation for carrying out repairs that necessitate its vacation, due to it becoming unsafe or unfit for human habitation.

(h) Need for the accommodation for construction, rebuilding, substantial additions, or alterations that require its vacation.

(i) The tenant has acquired suitable residential accommodation either by construction, acquisition of vacant possession, or allocation. (j) Cessation of tenant's service or employment by the landlord, in cases where the accommodation was initially leased due to the tenant's employment with the landlord.

(k) Substantial damage caused by the tenant.

(l) Tenant giving written notice to quit, which prompts the landlord to take steps that would significantly harm their interests, such as contracting to sell the accommodation.

(m) Unauthorized construction that materially alters the accommodation to the landlord's detriment or significantly diminishes its value.

(n) Requirement of open land for constructing a house.

(o) Unauthorized possession of a portion of the accommodation not included in the lease.

(p) Tenant's conviction for using the building for immoral or illegal purposes under current laws.

(2) Any order for tenant eviction under subsection (1) does not bind sub-tenants referred to in Section 15 who have notified the landlord of their sub-tenancy unless they are party to the proceeding, and the eviction order applies to them.

(3) No eviction order can be issued based on the ground in clause (a) of subsection (1) if the tenant makes payment or deposit as required by Section 13. However, this benefit is not available to a tenant who, after obtaining it once for any accommodation, defaults on rent payment for three consecutive months for that accommodation.

(4) When a landlord acquires any accommodation through transfer, no eviction suit can be filed under subsection (1) on the grounds specified in clauses (e) or (f) until one year has elapsed from the date of acquisition.

(5) If an eviction order is made based on the ground in clause (e) of subsection (1), the landlord cannot take possession for two months from the date of the order.

(6) If an eviction order is made based on the ground in clause (f) of subsection (1), the landlord cannot take possession until: (a) Two months have passed from the date of the order, and (b) In specified cities or towns, the landlord pays compensation equal to: (i) Double the annual standard rent in cases where the tenant used the accommodation for business purposes continuously for ten years before the eviction suit was filed, or where the tenant left the accommodation during this period, and the subsequent tenant acquired the business through transfer or inheritance; or (ii) The annual standard rent in other cases.

(7) No eviction order can be issued based on the ground in clause (h) of subsection (1) unless the court is convinced that the proposed reconstruction will not significantly change the accommodation's intended use or that such change is in the public interest, and proper plans, estimates, and necessary funds for reconstruction are available to the landlord.

(8) No eviction order can be issued based on the ground in clause (j) of subsection (1) if there is a pending dispute regarding whether the tenant has ceased to be in the landlord's service or employment before any competent authority.

(9) No eviction order can be issued based on the ground in clause (k) of subsection (1) if the tenant, within the specified time determined by the court, repairs the damage to the landlord's satisfaction or pays compensation as directed by the court.

(10) No eviction order can be issued based on the ground in clause (m) of subsection (1) if the tenant, within the specified time determined by the court, restores the accommodation to its original condition or pays compensation as directed by the court.

(11) No eviction order can be issued based on the ground in clause (o) of subsection (1) if the tenant

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Section 13: Conditions for Tenant's Protection Against Eviction.

(1) When a landlord initiates a lawsuit or any other legal proceeding based on the grounds mentioned in Section 12, or when a tenant files an appeal or any other proceeding in response to an eviction decree or order, the tenant must, within one month of receiving the writ of summons or notice of appeal, or within one month of initiating the appeal or other proceeding, or within an extended period granted by the Court through application, deposit in the Court or pay to the landlord an amount equivalent to the rent rate in question for the duration of the tenant's default, including any subsequent period up to the end of the previous month to the date of deposit or payment. Subsequently, the tenant must continue to deposit or pay a monthly sum equivalent to the rent at that rate until the final decision of the lawsuit, appeal, or proceeding, as applicable.

(2) If there is any dispute regarding the rent amount payable by the tenant in any suit or proceeding referred to in subsection (1), the Court, upon a plea made by either the landlord or tenant on this matter during the lawsuit or proceeding, shall promptly establish a reasonable provisional rent amount, applicable to the accommodation, which must be deposited or paid in accordance with subsection (1). The Court shall not entertain any plea regarding this issue at any later stage unless it has valid reasons recorded in writing.

(3) In any proceeding mentioned in subsection (1) where there is a dispute concerning the recipient of the rent, the Court may direct the tenant to deposit the amount due according to subsection (1) or subsection (2) with the Court. In such a situation, no one may withdraw the deposited amount until the Court resolves the dispute and issues an order for payment.

(4) If the Court determines that a dispute raised by a tenant under subsection (3) is based on false or frivolous grounds, it may strike out the defense against eviction and proceed with the lawsuit.

(5) If a tenant complies with the deposit or payment requirements outlined in this Section, the Court shall not issue a decree or order for possession of the accommodation due to rent default. However, the Court may award costs to the landlord as it deems appropriate.

(6) If a tenant fails to make the required deposit or payment as per this Section, the Court may strike out the defense against eviction and proceed with the hearing of the lawsuit, appeal, or proceeding, as applicable.

Section 14: Limitations on Subletting and Transfer of Tenancy Rights:

(1) Unless the landlord grants prior written consent, no tenant shall: (a) sublet the entire accommodation or any portion thereof that is under the tenant's possession; or (b) transfer or assign their rights in the tenancy or any part thereof.

(2) A landlord may not demand or receive any payment in the form of a premium, pugree, or any consideration, whether in cash or kind, in exchange for granting consent to the subletting of the entire accommodation or any part thereof under the tenant's possession.

Section 15: Notification of Sub-Tenancy Creation and Termination:

(1) If, after the commencement of this Act, the tenant sublets any part or the entire accommodation with the prior written consent of the landlord, the tenant or the sub-tenant to whom the accommodation is sublet must, in the prescribed manner, provide notice to the landlord within one month of the subletting's date, and similarly, notify the termination of such sub-tenancy within one month of its conclusion.

(2) In cases where, before the commencement of this Act, the tenant has lawfully sublet any part or the entire accommodation, the tenant or the sub-tenant to whom the accommodation has been sublet may, in the prescribed manner, notify the landlord of the sub-tenancy's creation within six months from the Act's commencement. Additionally, they must notify the termination of such sub-tenancy within one month of its conclusion.

(3) In situations described in subsection (2), if the landlord disputes that the subletting was lawful and submits an application to the Rent Controlling Authority within two months of receiving the notice of subletting from the landlord or the notice from the tenant or sub-tenant, the Rent Controlling Authority will resolve the dispute.

Section 16: Conversion of Sub-Tenant to Tenant in Specific Circumstances:

(1) When an eviction order is issued under Section 12 against a tenant but not against a sub-tenant as outlined in Section 15, and notice of the sub-tenancy has been provided to the landlord, the sub-tenant shall, starting from the order's date, be considered a tenant with a direct lease agreement with the landlord for the accommodation in their possession. This arrangement shall entail the same terms and conditions that would have applied if the tenancy had persisted with the landlord.

(2) In cases where, before the commencement of this Act, the tenant's interest in an accommodation has been terminated without resolving the sub-tenant's interest, whether the subletting was for the entire accommodation or a part thereof, the sub-tenant shall, effective from the Act's commencement, be regarded as a tenant with a direct lease agreement with the landlord. This arrangement shall entail the same terms and conditions that would have applied if the tenancy had continued with the landlord.

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Section 23A: Notwithstanding any other law in force or any contractual agreement to the contrary, a landlord may file an application, duly signed and verified as specified in Rules 14 and 15 of Order VI of the First Schedule to the Code of Civil Procedure, 1908 (V of 1908), akin to a plaint, before the Rent Controlling Authority, based on one or more of the following grounds, to seek an order directing the tenant to surrender possession of the accommodation: (a) when the accommodation rented for residential purposes is genuinely required by the landlord for self-residence or for the residence of any family member, or for the benefit of the person for whom the accommodation is leased, provided that neither the landlord nor the intended occupant has any other suitable residential accommodation in the same city or town.

Explanation: For the purpose of this clause, "accommodation rented for residential purposes" includes: (i) any accommodation originally leased for residential use but is being used partially or entirely for non-residential purposes without the landlord's express consent;

(ii) any accommodation not initially leased for non-residential purposes under a contractual provision;

(b) when the accommodation rented for non-residential purposes is genuinely required by the landlord to carry on or initiate their business or that of their major sons or unmarried daughters, provided they are the property owners or the persons for whose benefit the accommodation is held, and neither the landlord nor the intended occupant has any other suitable non-residential accommodation in the same city or town.

Provided that if a person becomes a landlord through transfer, no application for tenant eviction from such accommodation can be filed by them until a year has passed from the date of the transfer.

Section 23B: Rent Controlling Authority to Issue Summons for Every Section 23-A Application: (1) The Rent Controlling Authority shall serve a summons in the form specified in the Second Schedule to the tenant concerning every application referenced in Section 23-A. (2) Except as otherwise specified in this Act, the provisions of Order V and Order XVI of the First Schedule to the Code of Civil Procedure, 1908 (V of 1908) governing the issuance and service of summons to a defendant, and the summoning and examination of witnesses to provide evidence or produce documents, shall apply, with necessary modifications, to the issuance and service of summons to a tenant or an opposing party, or the summoning and attendance of witnesses to give evidence or produce documents in an inquiry or proceeding under this Chapter.

Section 23C. Tenant's Right to Contest under Specific Conditions: (1) A tenant who receives a summons in the form specified in the Second Schedule shall not challenge the request for eviction from the accommodation unless they file, within fifteen days from the date of summons service, an application supported by an affidavit stating the grounds for contesting the eviction application and obtain leave from the Rent Controlling Authority as outlined below. If the tenant fails to appear in response to the summons or fails to obtain such leave or if it is refused, the statement made by the landlord in the eviction application will be deemed admitted by the tenant. In such cases, the Rent Controlling Authority shall order the tenant's eviction from the accommodation:

Provided that the Rent Controlling Authority may excuse the tenant's delay in appearing or seeking leave to contest the eviction application for sufficient reasons shown by the tenant. If an ex parte order has been issued, the Rent Controlling Authority may set it aside.

(2) Within one month of receiving the tenant's application, the Rent Controlling Authority shall grant leave for the tenant to contest the eviction application if the tenant's application, supported by an affidavit, discloses facts that would disqualify the landlord from obtaining an order for possession of the accommodation based on the grounds specified in Section 23-A.

Section 23D. Procedure for Granting Leave to Contest:

(1) When the tenant is granted leave to contest the application, the Rent Controlling Authority shall start the hearing of the application promptly and shall make a decision within six months of granting leave.

(2) While conducting an inquiry under this Chapter, the Rent Controlling Authority shall, as far as possible, follow the practices and procedures of a Court of Small Causes, including the recording of evidence under the Provincial Small Cause Courts Act, 1887 (IX of 1887). The Rent Controlling Authority shall proceed with the hearing of the application from day to day, whenever feasible.

(3) For an application filed by a landlord, it shall be presumed, unless proven otherwise, that the requirement for eviction, as outlined in clause (a) or clause (b) of Section 23-A, is genuine.

Section 23E. High Court Review

(1) Notwithstanding the provisions of Section 31 or Section 32, there shall be no right to appeal against any order issued by the Rent Controlling Authority under this Chapter.

(2) The High Court may, either of its own accord or upon application by an aggrieved party, examine the records of a case pending before or concluded by the Rent Controlling Authority to assess the legality, propriety, correctness, or regularity of the Authority's proceedings or orders. The High Court may issue revision orders in relation to such records as it deems fit. Except as otherwise specified in this section, in dealing with revisions under this section, the High Court shall, to the extent possible, exercise the same powers and adhere to the same procedures as it does for disposing of revisions under Section 115 of the Code of Civil Procedure, 1908 (V of 1908), as if the proceedings before the Rent Controlling Authority were those of a subordinate court.

Provided that no revision powers may be exercised at the behest of an aggrieved party unless an application is submitted within ninety days from the date of the order being reviewed.

Section 23F: Duration of Suspension:

The stay on the enforcement of an eviction order issued by a Rent Controlling Authority or the High Court shall not last more than six months in total.

Section 23G: Recovery of Possession and Re-entry:

(1) When an eviction order is granted on the grounds stated in Section 23-A(a), the landlord shall not be entitled to regain possession for at least two months from the order's date.

(2) In the case of eviction orders based on the grounds set forth in Section 23-A(b), the landlord shall not regain possession until: (a) two months have passed since the order was issued; and (b) in the cities of Gwalior (including Lashkar and Morar), Indore, Ujjain, Ratlam, Bhopal, Jabalpur, Raipur, Durg, or any other towns or cities specified by the State Government through notification, the landlord pays the tenant an amount as compensation equal to: (i) twice the annual standard rent of the accommodation in the following circumstances: (a) if, for a continuous ten-year period immediately before the landlord's application for possession, the tenant used the accommodation for business or other purposes alongside residential use; (b) if during the aforementioned ten-year period, the tenant engaged in any business in the accommodation, then left, and the immediate successor tenant acquired the business through transfer or inheritance;

(ii) the annual standard rent in all other cases.

(3) If a landlord recovers possession of an accommodation based on an order issued under Section 23-A(a) or Section 23-A(b), the landlord cannot re-lease the entire or any part of the accommodation for a period of two years from the date of regaining possession without obtaining permission from the Rent Controlling Authority. The Rent Controlling Authority may, when granting such permission, instruct the landlord to return possession of the accommodation to the evicted tenant.

(4) If a landlord recovers possession as mentioned above and the accommodation remains unoccupied by either the landlord or the person for whose benefit it is held within two months of regaining possession, or if the accommodation, once occupied, is re-leased to anyone other than the evicted tenant within two years of regaining possession, without obtaining the permission of the Rent Controlling Authority as required under sub-Section (3), or if possession of the accommodation is transferred to another person for reasons that, in the opinion of the Rent Controlling Authority, are not genuine, the Rent Controlling Authority may, upon application by the evicted tenant filed within the prescribed timeframe, instruct the landlord to return possession of the accommodation to the tenant or to pay such compensation as the Rent Controlling Authority deems appropriate.

(5) If the landlord pays compensation to the tenant under sub-Section (2), the evicted tenant shall not be required to refund the same to the landlord upon regaining possession of the accommodation under sub-Section (3) or sub-Section (4).

Section 23H: Rent Deposit During Eviction or Revision Proceedings: The provisions of Section 13 shall apply, with the necessary adaptations, to an application for the recovery of possession of accommodation under Section 23-A and to proceedings for revision under Section 23-E, against the final order of the Rent Controlling Authority under Section 23-C or Section 23-D, as they apply to a suit or proceeding initiated on any of the grounds mentioned in Section 12:

Provided that no suit or proceeding for tenant eviction is pending in any court, at any stage, concerning the same accommodation.

Section 23I, False and Frivolous Applications, etc.: A landlord who submits a false or frivolous application under Section 23-A or a tenant who seeks permission to defend the application or requests an adjournment on false, frivolous, or vexatious grounds may be ordered to pay substantial compensatory costs, not exceeding six months' rent for the accommodation, as determined by the Rent Controlling Authority at any one time.

Section 23J: Definition of Landlord for Chapter III-A Purposes: For the purposes of this Chapter, a 'landlord' shall be defined as follows: (i) An individual who is a retired government employee, including a retired member of the Defense Services; (ii) A retired employee of a company owned or controlled by either the Central or State Government; (iii) A widow or a divorced wife; (iv) A physically handicapped person; (v) A government employee, including a member of the defense services, who, according to their service conditions, is either not entitled to government accommodation upon posting to a location where they own a house or is entitled to such accommodation only upon payment of a penal rent upon posting to such a location.

Section 28: Designation of Rent Controlling Authority:

(1) The Collector, with prior authorization from the State Government, shall designate an officer holding a rank not lower than Deputy Collector to serve as the Rent Controlling Authority for the designated region within his jurisdiction that falls under the scope of this Act.

(2) The Collector, with prior authorization from the State Government, may appoint one or more Rent Controlling Authorities from among officers holding a rank not lower than Deputy Collector to assist the Rent Controlling Authority appointed under subsection (1) as deemed necessary.

Section 29: Authority of Rent Controlling Authority:

(1) The Rent Controlling Authority shall possess the same powers as those vested in a Civil Court under the Code of Civil Procedure, 1908 (V of 1908), in any proceeding before it, pertaining to the following matters: (a) Summoning individuals and compelling them to give testimony under oath; (b) Demanding the discovery and presentation of documents; (c) Issuing commissions as required; (d) Any other matter deemed necessary.

Furthermore, any proceeding before the Rent Controlling Authority shall be considered a judicial proceeding within the definitions of Section 193 and Section 228 of the Indian Penal Code, 1860 (XLV of 1860). The Rent Controlling Authority shall also be regarded as a civil Court within the meanings of Section 480 and Section 482 of the Code of Criminal Procedure, 1898 (V of 1898).

(2) To carry out inquiries or fulfill duties under this Act, the Rent Controlling Authority may: (a) After providing at least twenty-four hours' written notice, enter and inspect any accommodation between sunrise and sunset; (b) Issue a written order mandating any person to produce all relevant accounts, books, or documents for inspection at a specified time and place.

Section 31: Appeal to District Judge or Additional District Judge. - (1) Every order issued by the Rent Controlling Authority under this Act shall be subject to appeal to the District Judge or an Additional District Judge with jurisdiction over the area (referred to as the "Judge"), and the determination of the appellate Court shall be conclusive.

(2) An appeal pursuant to subsection (1) shall be filed within thirty days from the date of the Rent Controlling Authority's order: Provided that, when calculating the thirty-day period, the time required to obtain a copy of the order shall be excluded: Provided further that, upon presenting valid reasons, the Judge may permit an appeal to be filed after the expiration of the aforementioned period.

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Section 32: Second appeal:

A second appeal may be filed against any order rendered in the first appeal under Section 31, but only on the following grounds and no others: (i) That the decision is in conflict with established law or recognized legal practices; (ii) That the decision has neglected to address a significant legal issue; (iii) That there exists a significant procedural error or deficiency as outlined in this Act, which conceivably may have affected the decision on the merits of the case.

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Section 37: Landlord's obligation to maintain the accommodation:

(1) Every landlord is responsible for maintaining the accommodation in a good and habitable condition.

(2) In the event that the landlord neglects or fails to perform necessary repairs, as required under subsection (1), and the tenant provides written notice, the tenant may carry out these repairs within a reasonable timeframe and deduct the repair costs from the rent, or pursue reimbursement from the landlord. However, the amount deducted or recoverable in any given year shall not exceed one-twelfth of the annual rent payable by the tenant.

(3) When essential repairs are necessary for the accommodation to remain habitable or functional, and the landlord fails to address them despite receiving written notice, the tenant may request permission from the Rent Controlling Authority to carry out such repairs. The tenant may also submit an estimate of the repair costs to the Rent Controlling Authority. After granting the landlord an opportunity to be heard and conducting any necessary inquiries, the Rent Controlling Authority may issue a written order allowing the tenant to proceed with the repairs at a specified cost.

The tenant may then make these repairs and deduct the approved cost, not exceeding one-half of the annual rent payable by the tenant for that year, from the rent or seek reimbursement from the landlord. If additional repairs beyond the approved cost are deemed necessary by the Rent Controlling Authority and the tenant agrees to cover the excess expenses, the tenant may be permitted by the Rent Controlling Authority to undertake these additional repairs.

Section 43: Penalties:

(1) Any person who receives rent exceeding the standard rent as specified in clause (1) of Section 7 or fixed by the Rent Controlling Authority under Section 10 shall be subject to punishment, which may include simple imprisonment for a period of up to three months, or a fine exceeding one thousand rupees, or both, the fine not to exceed the excess amount charged unlawfully over the standard rent.

(2) Any person who violates the provisions of sub-section (2) or sub-section (3) of Section 6 shall be subject to punishment, which may include simple imprisonment for a period of up to six months, or a fine exceeding five thousand rupees, or both, the fine not to exceed the amount or value of the unlawful charge claimed or received under the said sub-Section (2) or sub-section (3), as applicable.

(3) Any tenant who sub-lets, assigns, or otherwise transfers the possession of the whole or part of any accommodation in violation of the provisions of clause (b) of sub-section (1) of Section 12 shall be subject to a fine not exceeding one thousand rupees. (3-a) Any landlord who re-lets or transfers the whole or any part of any accommodation in violation of the provisions of sub-section (1) or sub-section (2) of Section 17 shall be subject to punishment, which may include imprisonment for a period of up to three months, or a fine not exceeding one thousand rupees, or both.

(4) Any landlord who re-lets or transfers the whole or any part of any accommodation in violation of the provisions of sub-section (3) or sub-section (4) of Section 23-G shall be subject to punishment, which may include imprisonment for a period of up to three months, or a fine not exceeding one thousand rupees, or both.

(5) Any landlord who violates the provisions of sub-section (1) of Section 38 shall be subject to punishment, which may include imprisonment for a period of up to three months, or a fine not exceeding one thousand rupees, or both.

(6) Any person who contravenes the provisions of [sub-section (1) or sub-section (2) of Section 39 or of sub-section (2) of Section 40-A] shall be subject to punishment, which may include simple imprisonment for a period of up to three months, or a fine not exceeding one thousand rupees, or both.

Section 44: Jurisdiction over Offenses.

1) Offenses punishable under this Act shall only be tried by a Magistrate of the First Class or a higher court. (2) No court shall entertain a case related to an offense punishable under this Act unless a complaint regarding the offense is filed within three months from the date of the offense. (3) Despite the provisions of Section 32 of the [Code of Criminal Procedure, 1898 (V of 1898)], a Magistrate of the First Class may impose a fine or sentence exceeding two thousand rupees on a person convicted of an offense punishable under this Act.

Landmark Judgement on MP Accommodation Act

Case Title: NARENDRA VERSUS NARENDRA

Facts and Judgement:

The Indore Bench of the Madhya Pradesh High Court, in a ruling dated December 22, clarified that the exemption provided under Section 3(1)(b) of the Madhya Pradesh Accommodation Control Act, 1961, applies solely to the specific property in question and is not contingent on the tenant-landlord relationship. The observations made by the bench, presided over by Justice Pranay Verma, were as follows:

"...the exemption provided pertains to the premises itself and not to the relationship between landlord and tenant. This means that the exemption is applicable to the premises, regardless of the parties involved in the lawsuit, whether they are the owner, lessee, sub-lessee, or any other party. This distinction is immaterial, and the exemption remains valid. Consequently, the provisions of the 1961 Act would be inapplicable, irrespective of the parties initiating the lawsuit."

The case revolved around the following facts: The appellant's grandfather had initially leased a shop from the Nagar Palika (municipal authority). Later, through his Will, the grandfather bequeathed his ownership interest in the shop to the appellant. Consequently, the Nagar Palika extended the lease. Before his demise, the appellant's grandfather had sublet the shop to the father of the defendants in exchange for monthly rent.

The appellant filed an eviction lawsuit against the defendants due to their failure to pay rent and also claimed damages. The trial court ruled in favor of the plaintiff, asserting that the property was owned by the Nagar Palika, thus rendering the restrictions of the 1961 Act inapplicable. Dissatisfied with the trial court's judgment, the defendants decided to appeal to the lower appellate court, which ultimately overturned the trial court's decision. The lower appellate court held that the exception under Section 3(1)(b) of the Act applied exclusively to owner-lessee relationships and did not extend to lessee-sublessee relationships, making it irrelevant to the case. Furthermore, it stated that the eviction decree could not be upheld because the appellant failed to establish any of the grounds listed under Section 12(1)(a) of the Act against the defendants. In response, the appellant chose to appeal to the Court.

The Court concluded that the appellant's claims were valid. Legal precedents established that the exemption under Section 3(1)(b) of the Act pertained to the property itself and not the landlord-tenant relationship, rendering it exempt from the provisions of the 1961 Act. Consequently, the Court concurred with the trial court's findings.

Therefore, the lower appellate court erred in determining that the provisions of the 1961 Act applied to the case, and the plaintiff was required to establish grounds under Section 12(1) of the Act, 1961. Given that the Nagar Palika Parishad was the owner of the shop in question and had leased it to the plaintiff, and the defendants were sublessees, the plaintiff's notice dated April 16, 2013, validly terminated the tenancy of the defendants. Consequently, the plaintiff was entitled to recover possession of the shop from the defendants, as rightly determined by the trial court.

In light of this, the Court overturned the ruling and order issued by the lower appellate court, reinstating the trial court's eviction order in favor of the appellant/plaintiff.

Case Title: Subhash Chandra (Late) vs Gulab Bai

Facts and Judgement:

The appellants, who are the legal heirs of the late Subash Chandra, the landlord, were involved in ongoing litigation at the time of the landlord's demise. The landlord had secured an eviction order against his tenant through the specialized process outlined in Chapter IIIA of the Madhya Pradesh Accommodation Control Act, 1961. Two esteemed Judges of the High Court opined that the appellant could not be classified as a landlord as per the provisions of Section 23-J(ii) of the Act. Dissatisfied with this judgment, the appellants subsequently filed an appeal in the High Court.

The Supreme Court of India dismissed the High Court's order and upheld the appellant's claim.

"We, therefore, believe that interpreting the provisions of Section 23-J(ii) of the Act to encompass retired employees of the Municipal Corporation aligns with the legislative intent behind the enactment of Chapter IIIA of the Act. Consequently, we affirm that the appellant, who is the landlord, had every right to utilize the special procedure outlined in Chapter IIIA of the Act. Therefore, the eviction decree obtained by the appellant remains valid, and there are no grounds to challenge the jurisdiction of the Tribunal/Forum that issued the decision," declared the Supreme Court of India.

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Conclusion:

In this article we have covered all the important sections that you need to focus on for MPCJ Preparation. Download the notes, especially curated by our team for your overall preparation.

Download the take a print out of the notes of MP Accommodation Act for Judiciary.
highlight the important parts for your preparation.
Make sure that you read all the important cases as well.
Apart from the sections mentioned above, you must make sure that you read the entire act atleast once and then revise 2-3 times before the examination.
Make sure that you understand important Judgement on MP Accommodation Act.

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AIJSAT

MP Accommodation Control Act 1961 Download PDF

Author : Yogricha

June 25, 2024

In this article we will cover:

Overview of the MP Accommodation Control Act 1961 for Judiciary.
Important Sections of the Act.
MP Accommodation Control Act 1961 PDF Notes
Landmark Judgements

Overview of the MP Accommodation Act for Judiciary

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MP accommodation act aims to:

Regulate and oversee the renting and rental rates of accommodations.
Facilitate the prompt adjudication of eviction cases based on the genuine need of specific categories of landlords.
Govern and manage the eviction of tenants from accommodations, along with other related provisions.
It comprises a total of 6 chapters and 51 sections.

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In MP accommodation act following concepts are discussed:

Exemptions from Chapter Provisions for Specific Accommodations during a Defined Period.
Recovery of Rent Beyond Standard Rent Prohibited.
Prohibition of Unlawful Charges for Claim or Receipt.
Rights and protection of tenants
Determination of Standard Rent.
Legitimate Standard Rent Increment in Specified Cases and Collection of Additional Charges.
Notification of Rent Increment.
Authority for Establishing Standard Rent and Related Matters.
Determination of Interim Rent.