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2024 Supreme(Mad) 925

IN THE HIGH COURT OF JUDICATURE AT MADRAS
THE HON'BLE MR. SANJAY V. GANGAPURWALA, CHIEF JUSTICE, THE HON'BLE MR. JUSTICE D. BHARATHA CHAKRAVARTHY, J.
Balaji - Petitioner
Versus
Principal Secretary to Government, Government of Tamil Nadu, Housing and Urban Development Department, and Anr. - Respondents
W.P.Nos.3985 and 7400 of 2020; 15611, 21340, 21347, 25151, 26143, 26893, 27055 and 27061 of 2021; 1595, 4856 and 24311 of 2022; 1005 and 1611 of 2023
Decided On : 23-04-2024

Advocates Appeared:
For the Petitioner: Mr. A. Asokan.
For the Respondents: Mr. P.S. Raman, Add. Adv. General, Assisted by Mr. C. Harsha Raj, Addl. Government Pleader.

The legislative framework of rental laws must adapt to socio-economic changes while maintaining fundamental tenant rights to mitigate unbalanced power dynamics between landlords and tenants.

Headnote:(A) Tamil Nadu Regulation of Rights and Responsibilities of Landlords and Tenants Act, 2017 - Constitutional validity - Petitioners, comprising landlords and tenants, challenged provisions of the Act on grounds of repugnancy and arbitrariness while claiming violations of Articles 14, 19(1)(g), and 21 of the Constitution - Court recognized the necessity of legislative interventions in light of changing socio-economic conditions but maintained existing legal protections unless explicitly amended - Sections 4 and 4A were read down to align with objectives of Act, asserting the viability of contractual agreements between landlords and tenants while dispelling concerns of unconstrained landlord power. (Paras 11.4, 20(i), 20(ii))

(B) Rent Control Legislation - Legislative power - The State's authority to legislate is traced to Entries 6, 7, and 13 of List III of the Constitution of India, contrary to claims of reliance on Entry 18 of List II, indicating the position of dominance of Central legislation in related fields. (Paras 11.14, 20)

Facts of the case:
Petitioners sought judicial review against provisions of the impugned Act which had replaced the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960, alleging it undermined previous protections conferred upon statutory tenants. The background included shifting socio-economic realities prompting legislative updates targeting tenant rights amidst an evolving housing environment.

Findings of Court:
The court found provisions of the impugned Act, while altering the legal landscape, were not unconstitutional, framing a balance of rights and responsibilities for both landlords and tenants, and endorsed the legislative intent aligning with national housing policies.

Issues: The primary issues included whether the impugned legislation is constitutionally valid concerning statutory tenant protections and its repugnancy to Central laws governing land leases and tenancy.

Ratio Decidendi: The court concluded that the historic context demands legislative adjustment for equitable housing practices but underscored tenants' rights shouldn't be unfettered; Sections 4 and 4A were narrowed to ensure coherence within the existing legal structure ensuring rapid dispute resolution.

Result: Writ Petitions disposed of with sections read down for compliance with the stated judicial interpretation.

Table of Content
1. petitioners challenge tamil nadu act 42 of 2017. (Para 1 , 2)
2. arguments against legislation based on violation of constitutional rights. (Para 3)
3. respondents defend legislation based on evolving socio-economic conditions. (Para 4)
4. disputes highlight complexity regarding legislative powers in rental laws. (Para 5 , 6)
5. key legislative powers analyzed in context of constitutional frameworks. (Para 10 , 11 , 19)
6. legislation remains valid with specified operational adjustments. (Para 20)

ORDER :

(Hon'ble Mr. Justice D. Bharatha Chakravarthy, J.)

(Prayer in W.P.No.3985 of 2020 : Writ Petition filed under Article 226 of the Constitution of India praying for a Writ of Mandamus directing the respondents to amend or to include the indispensible guidelines of Building Plan Approval and in the TNRRRLT Act.)

The Petitions:

The petitioners in all these Writ Petitions are either tenants or landlords in respect of the buildings let out for residential or commercial purposes. They are challenging the constitutional validity of the Tamil Nadu Regulation of Rights and Responsibilities of Landlords and Tenants Act, 2017 (Tamil Nadu Act 42 of 2017) as amended. Various provisions of the Act are challenged on the grounds of repugnancy with central enactments, being arbitrary or taking away the vested rights of the parties. The parties herein are facing proceedings under the Act before the Rent Authority/Rent Court etc.. Thus, while keeping the merits of the matter and the interpretation of all or any of the provisions with reference to their facts situation open to be contested in their respective matters, they are challenging the vires of the Act before us. As such all these petitions are taken up, heard together, and disposed of by way of this common order.

Prelude:

2. In the immediate aftermath of the Second World War, especially in the urban areas, the landlords started exploiting the demand for accommodation, which necessitated the State to step in. To exercise control and ameliorate the situation, the Madras Buildings (Lease and Rent Control) Act, 1949 was enacted. Thereafter, to further regulate the letting, control the rents payable and prevent unreasonable eviction of tenants, the State of Tamil Nadu enacted the Tamil Nadu Building (Lease and Rent Control) Act 1960 (Act 18 of 1960) Irani Vs. State of Madras , (1962) 1 MLJ SC 92 .

2.1. It is held by this Court in Messrs.Raval & Company Vs. K.G.Rama-chandran (minor) and Ors. , (1974) 1 SCC 424 that the said Act was brought into force in respect of urban buildings, considering the rents, the conditions of scarce accommodation, and perhaps considerable hardship to tenants occasioned by evictions strictly under the law.The legislature seems to have intended to regulate these matters by way of a statute. It is held by the Hon'ble Supreme Court of India in Kewal Singh Vs. Lajwanti , (1980) 1 SCC 290 that this type of legislation was termed as a social reform to protect the tenants from capricious and frivolous eviction and thus conferring the status of statutory tenant who could not be evicted, except under the conditions specified therein and by following the procedures, prescribed by the Rent Control Act.

2.2. The said Act 18 of 1960 governed the field for close to 60 years.There were similar legislations throughout the country. It was felt that the provisions were made long back when the supply of rental accommodation was limited, real estate business had not evolved and properties were vested in the hands of very few people. With the changing scenario, robust real estate and availability of enough housing stock and with the policy of the Government of India making “Housing for All” as its mission, the Government of India circulated a Model Tenancy Act, to be adopted by the States in the year 2015. It was also made a mandatory condition to be fulfilled by the State to implement the “Housing for All” project of the Central Government. In this scenario, the State of Ta

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