The Model Tenancy Act, 2019

The Model Tenancy Act, 2019

by | Jan 23, 2021 | General

In India, there are many laws and regulations which govern the relation between landowners and tenants. In spite of several laws, there have always been many differences and disputes between landowners and tenants. Thus, codified legislation for those disputes is a need of today for the growth of the nation. With the motive to ease the relations between the landowners and the tenants the Centre Govt. proposed the Model Tenancy Act 2019 to encourage transparency and efficiency among tenants and the landowners.

The Act is not yet passed by the Parliament. The Govt. expresses its wish to repeal the existing rental laws in India by bringing the new Act. The draft of the Act is currently under the review by the States and Union Territories.

Some features of this proposed law are specified below:-

What is the Purpose to enact the Act?

The Government has committed to provide housing for all by the end of 2022. Therefore, the Act is proposed to establish the Rent Authority for regulating renting premises in an efficient and transparent manner, to balance the interests of landowner and tenant by establishing Rent Court and Rent Tribunal for speedy dispute redressal.

Applicability of the Model Tenancy Act-

The provisions of the Act are not applicable to:

  1. The premises owned or promoted by the Central or State or Union Territory Government or Local Authority or a Government Undertaking or Enterprise or a statutory body or cantonment board.
  2. The premises owned by a company, university or organization given on rent to its employees as part of service contract.
  3. Any premises owned by religious or charitable institutions as may be specified.
  4. Any premises owned by any trust registered under the Public Trust Act of the State.
  5. Any premises owned by Wakfs registered under the Wakf Act, 1995.
  6. Any other building or category of building specifically exempted in public interest through notification.

However, if any of the above mentioned premises owner wishes that tenancy agreement entered into by them be regulated under the provisions of this Act, the owner may inform the Rent Authority to do so under Section 4 of this Act.

What does the term “Tenant” means?

“Tenant” is a person on whose account or on behalf of whom the rent of any premises is or but for a contract express or implied, would be payable for any premises. It also includes person who occupies the premises as a sub tenant and also person continuing in possession after the termination of his tenancy whether before or after the commencement of this Act. However, it does not include any person against whom any order or decree for eviction has been made.

What is a Tenancy Agreement?

Tenancy Agreement means a written agreement describing all the terms and conditions of the tenancy. The agreement must be stamped and registered. In case of any changes or alteration, it must be put in writing. The Agreement must be dated and signed by the landowner and the tenant.

Period of Tenancy-

  • The Period of tenancy is as agreed between the Landowner and Tenant in the tenancy agreement.
  • The tenant can approach the landowner for renewal or extension of the tenancy within the period agreed between them in the tenancy agreement. However, renewal must be done prior to the end of the tenancy period.
  • In case of period of tenancy fixed term ends and has not been renewed and the premises have not been vacated by the tenant then the tenancy can be deemed to be renewed on a month to month basis on the same terms and conditions as discussed in the previous agreement for a maximum period of six months.

What are the Rights of a Tenant?

  1. Right to privacy- Earlier landowners used to enter the premises of the tenant as and when they want to. Therefore, this Act applied a provision for the privacy of the tenant. Now a landowner or the property manager has to give a notice at least 24 hours before the time of the entry either in written or through electronic medium to the tenant. The notice should specify the reason for the visit and the day and time of the entry between 7 AM to 8PM.
  2. Right against unfair eviction- A landowner cannot evict the tenant without sufficient reason or cause. The rules of eviction vary as per the state law.
  3. Right of fair rent- The landowner cannot charge extraordinary amounts in rent. The valuation of property for rent is to be dependent on the value of the property. If the amount asked for rest is too much as compared to the value of the property then the tenant may approach to the court to seek redressal.
  4. Right to get original signed copy of the agreement-The tenant has the right to get one original signed copy of agreement from the landowner within fifteen days of the agreement.
  5. Right to essential services- It is the basic right of the tenant to enjoy essential services such as water supply, electricity, gas pipeline, etc. A landowner does not have the right to withdraw these services even if the tenant has failed to pay rent with regards to the same property or different one.
  6. Right to recover security deposit- Now, tenants have to pay maximum two month rent as security deposit. As in cities like Bangalore & Mumbai, tenants have to pay at least one year rent as security deposit. Also the landowners are obligates to refund the security deposit to tenant at the time of taking over vacant possession of the premises. However, landowners can deduct any liability of the tenant from the security deposit.

What are the rights of a Landowner?

  1. The Landowner has the right to evict the tenant on a personal or bonafide requirement.
  2. The Landowner has the right to temporarily recover the possession of the premises.
  3. The Landowner has the right raise the rent periodically as per the rules.
  4. The Landowner has the right to be informed about the damage and if any repair or maintenance being made to the premises or the property.
  5. The Tenant cannot sub-let the whole or part of the rented premises without prior permission of the landowner.
  6. The Landowner has the right which can be enforced against the tenant who stand as defaulters in the payment of rent or misuses the premises of the landowner.

Revision of Rent-

The rent should be as per the terms set out in the Tenancy Agreement. However, the landowner can increase the rent with a prior notice of three months in writing to the tenant before the increased rent becomes due. In case tenant fails to give the notice of termination of tenancy to landowner then the tenant have to accept whatever rent increase has been proposed by the landowner.

Appellate Jurisdiction-

An Appeal can be filed before Rent Court having territorial jurisdiction against the order of the Rent Authority made under this Act. The Appeal must be filed within 30 days from the date of the order made by the Rent Authority.

-Shrinkhla

Associate at Aggarwals & Associates, S.A.S. Nagar, Mohali

CIVIL REVISION

CIVIL REVISION

by | Jan 22, 2021 | General

Revision means “to revise” or “to look again”. Hence, an act of revising or revisiting any order with a view to correct or improves is called “Revision”. Revisional power is one of the powers conferred by the statute to the High Court to revise an order or judgment delivered by its subordinate court where necessary. Civil revision is a new outlook towards legal resolution. However, it may or may not result in any amendment. It is a discretionary power of the High Court granted under Code of Civil procedure. Under this power High Court neither enters into the merits of the evidence nor can admit additional evidence.

The objective is to keep check on the subordinate courts from acting arbitrarily, capriciously and illegally or irregularly in the exercise of their jurisdiction. It provides the High Court with the powers necessary to see that the proceedings of the subordinate courts are conducted in accordance with the law within the bounds of their jurisdiction and in furtherance of justice.

Provision under Code of Civil Procedure:

Section 115 of the Code of Civil Procedure provides for the Revisional jurisdiction of the High Court. It empowers the High Court to call for record of any case which has been decided by its subordinate court and in which case no appeal lies. However, The Court has to keep in mind that:

  1. The High Court need not vary or reverse any order delivered by the subordinate court except when the order is made in favour of the party applying for revision would have finally disposed of the suit or other proceeding.
  2. A revision should not operate as a stay of suit or other proceeding before the court except where such suit or proceeding is stayed by the High Court.
  3. The High Court need not vary or reverse any order delivered by the subordinate court except when the order if allowed to stand would result in failure of justice or cause irreparable injury to the party against whom it was made.

Who can file Revision Petition?       

  1. Any aggrieved party may file an application to the High Court.
  2. The High Court may exercise its power suo moto i.e. itself call for the record of a subordinate court under its jurisdiction.
  3. An application from a person who has no locus standi may be treated as information to induce the High Court to act suo moto.

What are the conditions required for Civil Revision?

Section 115 of the Code of Civil Procedure provides the conditions required when the High Court can exercise its Revisional jurisdiction:

  1. The case must be concluded by the Court.
  2. The court delivering the order must be subordinate to the High Court.
  3. The case should be of such nature where appeal cannot be applied to the appellate court against order of the subordinate court.
  4. The subordinate court has decided such case by:
  5. The exercise of jurisdiction which is not vested to that court by law.
  6. When it has failed to exercise the vested jurisdiction by law.
  7. It has acted in the exercise of its jurisdiction illegal or with material irregularity.

Landmark Judgments-

  1. In the case of Amir Hassan Khan v/s Sheo Baksh Singh [(1884) 11 IA 237]-The Hon’ble Privy Council while interpreting the words “or to have acted in the exercise of its jurisdiction illegally or with material irregularity” observed that it appears that the Lower Courts had perfect jurisdiction to decide the question which was before them and they did decide it. Whether they decided it rightly or wrongly, they had jurisdiction to decide the case and even if they decided wrongly, they did not exercise their jurisdiction illegally or with material irregularity.

 

  1. In the case of Balakrishna Udayar v/s vasudeva Aiyar (AIR 1917 PC 71)-It was observed by the Hon’ble Privy Council that the section applies to jurisdiction alone, the irregular exercise or non-exercise of it or the illegal assumption of it. The Section is not directed against conclusions of law or fact in which the question of jurisdiction is not involved.

 

  1. In the case of Durga Devi v/s Vijay Kumar Poddar & Ors [2010(2) PLJR 954]-The Hon’ble High Court of Patna held that if the order in favour of the party applying for revision would have given finality to a suit or other proceedings and the answer is “Yes”, then the revision would be maintainable and if the answer is negative in nature, then the revision is not maintainable.

 

  1. In the case of Major S. S. Khanna v/s Brig. FJ. Dhillon[AIR 1964 SC 497]– It was held by the Hon’ble Supreme Court that an interlocutory order holding that the plaintiffs suit for the recovery of money advanced to the defendant was not maintainable must be regarded as a case which has been decided. It has further been held that there is no such restriction placed upon the power of the High Court in the exercise of Revisional jurisdiction as would limit the exercise of that power only to cases where no appeal is competent from the final order passed in the suit or proceeding.

 

  1. In the case of L.F Housing & Construction v/s Sarup Singh [AIR 1971 SC 2324]- It was observed that the mass of reported cases only serve to show that the High Courts do not always appreciates the limits of their jurisdiction under this section. The Hon’ble Supreme Court upheld that this section is not directed against the conclusions of law or fact in which the question of jurisdiction is not involved.

-Shrinkhla

Associate at Aggarwals & Associates, S.A.S. Nagar, Mohali

Compliances to be followed by Limited Liability Partnership

Compliances to be followed by Limited Liability Partnership

by | Jan 21, 2021 | General

A Limited Liability Partnership, commonly known as LLP is a hybrid form of business in India which has the combined features of a Partnership firm and Private Limited Company. LLP is a corporate entity and is operated by rules procedures as given in the Limited Liability Partnership Act, 2008. An LLP can be formed with a minimum 2 designated partners as per the provisions of the Companies Act, 2013.

An LLP has to comply with numerous compliances with regard to its incorporation and functioning. These compliances are categorized as one time compliances and annual compliances of the LLP and filed with the Registrar of Companies.

One time compliances for Limited Liability Partnership:

  1. Digital Signature Certificate: For signing the forms relating to LLP incorporation and LLP annual compliances every designated partner of the LLP is required to obtain a digital signature certificate. A digital signature certificate is the digital form of physical signatures that act as the proof of identity of an authorized person.
  2. Registration of LLP Agreement: Every LLP needs to get a limited liability partnership agreement drafted and registered within 30 days of its incorporation. An LLP agreement lays down the agreement between partners of an LLP and defines their rights and duties towards the LLP as well each other. Such agreement specifies the profit and loss distribution between the partners, ownership rights, management rights, rules regarding day-to-day activities of LLP etc.
  3. Designated Partner Identification Number: DPIN or Designated Partner Identification Number is an equivalent of DIN that acts as the identity number of designated partner in LLP. DPIN is to be obtained from the Ministry of Corporate Affairs and requires a digital signature certificate for filling of the application for obtaining DPIN.

 Annual Compliances for Limited Liability Partnership:

Every LLP requires filing of different annual compliances for the financial year with the Registrar of Companies. Non-compliances with such annual filings can result in heavy penalties. These annual compliances become applicable over the LLP right from the moment it gets registered. The annual compliances include the following:

  1. Filing of Financial Statement: An LLP is required to maintain its Books of Accounts in Double Entry System and prepare its statement of solvency for every financial year on or before 30th It is compulsory for LLP to audit its accounts and financial statement including balance sheet, profit and loss statement, cash flow statement, notes and schedules by the Chartered Accountant if the annual turnover of such LLP exceeds Rs. 40 lakh or its contribution exceeds Rs. 25 lakh.
  2. Filing of Annual Return: Annual returns of an LLP are filed in Form-11 with the Ministry of Corporate Affairs. Annual returns of the LLP describe the details relating to the management of LLP, number of partners, their names, address etc. Annual returns must be filed by 30th May every year for the financial year ending on 31st
  3. Income tax return filing: LLP can file its return of income in Form ITR 5. The books of accounts must be audited and return must be filed before 30th September if annual turnover of such LLP is more than Rs. 60 lakhs or its contribution exceeds Rs. 25 lakh. Form 3CEB is required to be filed if LLP involved in international transactions with associated enterprises or has undertaken specified domestic transactions. This form is to be certified by practicing Chartered Accountant and must be filed by 30th

Penalty for Non-Compliance with Annual Filings:

The Limited Liability Partnership Act, 2008 states that non-compliance with the LLP annual compliances with Registrar of Companies can lead to a penalty of Rs. 100 per day for every not filed. There is no upper limit for such penalty amount. On non-filing of the statement of accounts, designated partners also have to face a personal penalty of Rs. 10,000 extendable up to Rs.1 lakh. The Registrar of Companies can issue notice to LLP and initiate legal proceedings like strike off.

Penalty of Rs. 5000/- can be imposed on non filing of Income Tax returns if the ITR is filed after the deadline but before 31st December. If the ITR is filed after 31st December, then a fine of Rs. 10,000 is required to be paid to the Income Tax Department.

Conclusion:

Running a business, be it in the form of a One Person Company, LLP or as Private Limited Company, is not easy task, it is an investment of time, money, and effort and also requires the knowledge of so many formalities, regulatory or financial. Filing of all the forms and returns on time is very essential. Heavy penalties can be imposed if the forms are not filed on time with the Registrar.

-Kiranpreet Kaur

Associate at Aggarwals & Associates, S.A.S. Nagar, Mohali

Do You Need The Assistance of A Divorce Lawyer in Chandigarh?

Do You Need The Assistance of A Divorce Lawyer in Chandigarh?

by | Jan 21, 2021 | Divorce Lawyer

We, Aggarwals & Associates is the best Law firm in Chandigarh put stop to your hunt for Divorce Lawyer in Chandigarh. Finding a lawyer which best suited to your requirements is not an easy task for an individual. You may have many reasons to hire a Divorce Lawyer. We, being one of the prominent Divorce Lawyer in Chandigarh can assist you in your legal issues relating to marriage. Marriage is an institution itself which associated with various aspects of an individual’s life. Ending such an institution may lead to many complications in the life of persons associated. 

A Divorce Lawyer can help you in sorting out these hurdles. It is an important decision to choose the right lawyer who can lead you to the right path in your legal journey. A Divorce Lawyer can be your savior in intricate issues relating to marriage. 

Are you in search of the best-suited Divorce Lawyer?

It is obvious for the person facing matrimonial proceedings to search for a best-suited lawyer who can assist in this complex situation. A divorce is a stressful event and it becomes difficult for an individual to maintain a positive attitude while facing such a situation. A divorce lawyer can assist you in resolving complicated issues relating to marriage. If you are in search of some best Divorce Lawyer then We Aggarwals & Associates being one of the eminent Law firms in Chandigarh are here to assist you in your matter.  

Why you may need assistance?

With the breakdown of the matrimonial institutions, a person may get into a complex situation due to various associated things with this institution. It is natural that parties to a marriage may have children, joint property and investments, etc. Having such things can play a considerable role during the existence of marriage but may turn worsen if parties to the marriage choose to separate their ways.  It is a Divorce Lawyer who can assist you to get out of this complex situation. If you opt for divorce involving assets, child custody, and complex financial issues then you should turn to Divorce Lawyer for legal assistance to avoid future obstacles. A person can get rid of the torment caused by matrimonial issues by choosing a skillful divorce lawyer. 

How we can help you?

We, Aggarwals & Associates is one of the top-notch Divorce Lawyer in Chandigarh that can get you out from this complex situation of divorce proceedings. Our team of Divorce Lawyers in Chandigarh can assist you in marriage-related issues such as divorce proceedings, child custody, restitution of conjugal rights, judicial separation, domestic violence cases, women cell complaints, and other associated issues with marriage.  We assure you to secure your best interest in the legal journey with us. We offer our services in the below-given areas of matrimonial litigation:-

  • Filing and defending contested/mutual consent divorce.
  • Alimony 
  • Interim maintenance 
  • Maintenance under Section 125 of Cr.P.C.
  • Child custody 
  • Filing and drafting of complaints under the Domestic Violence Act 
  • Dowry harassment cases under Section 498-A of IPC
  • Women cell complaints
  • NRI issues related to marriage 
  • Restitution of conjugal rights 
  • Judicial separation 
  • Annulment of marriage 
  • Transfer petitions 
  • Counseling and mediation   

Our mission:

We, Aggarwals & Associates obligate to deal with every client with utmost sincerity by keeping their interest at paramount consideration.  Our efficient team of Divorce Lawyer in Chandigarh maintains trusted relationships with clients by understanding clients’ needs in their overall context of litigation. Our firm strongly believes in professionalism in a client-attorney relationship and maintains a higher standard of confidentiality and morality in dealings. 

Why clients put trust on us?

  • Time-bound and hardworking team.
  • Transparent dealings.
  • Excellent support.
  • Honest advice and fair representation.
  • Strong emphasis on research, editorial, and oratory skills. 
  • Professionalism and impressive reputation.
  • Problem-solving attitude.
Indian Contract Act, 1872

Indian Contract Act, 1872

by | Jan 19, 2021 | General

The Indian Contract Act codifies the legal principles which govern the ‘contracts’. It frames and validates the contracts or agreements between various parties. The Indian Contract Act constitutes the most important branch of Mercantile or Commercial Law. The Act consists of the following two parts: a) General Principals of the Law of Contract, b) Special kinds of contracts such as contractual relationships like indemnity, guarantee, bailment, pledge, agency, quasi contracts, etc.

What is a Contract?
As per section 2 (h) of the Indian Contract Act, A contract is an agreement enforceable by law. Here are the important steps for formation of a valid contract:

  • Offer or Proposal
  • Acceptance
  • Agreement
  • Legal Enforceability
  • Contract

Essentials ingredients of a valid contract-

1. Capacity to Contract-The parties to a contract must have legal capacity. For example: A person is not in capacity to make a legal contract where he is of unsound mind or a minor or disqualified from contracting by any law to which he is subject.

2. Offer and Acceptance- There must be an offer or proposal by one party and acceptance of that proposal by another party which results in an agreement.

3. Legal Relationship- The intention of the parties to a contract must be to create a legal relationship. Agreements of social nature are not a valid contract. For instance- when a father makes promised to give a car to his son if he ranks number one in his exam, but fails to fulfill his promise. Then the son cannot sue the father as there was no intention to create a legal relation.

4. Consideration of the Contract-The consideration of the contract must not be unlawful, immoral or opposed to the public policy.

5. Free Consent-The consent means when both the parties agree to a thing in the same sense of mind.The principle of ‘consensus-ad-idem’ which means ‘meeting of minds’. The consent between the parties must be a free consent.Consent is said to be free when it is not given by coercion, undue influence, fraud, mistake or misrepresentation which are explained under-
             a. Coercion-When a person commits or threatens to commit an act forbidden by the Indian Penal Code with a view to obtaining the consent of the other person to an agreement, the consent in the following case is deemed to have been obtained by coercion.
Case Law-
ChikkamAmmiraju v/s ChickamSeshamma[ ILR(1918) 41 Mad 33]
In this case the husband by a threat of suicide, induced his wife and son to execute a release deed in favour of his brother in respect of a certain properties claimed as their own by the wife and son. The Court held that threatening to commit suicide amounted to coercion within the meaning of section 15 of the Indian Contract Act and therefore release deed was voidable.

             b. Undue Influence-Where the relations subsisting between both the parties are such that one of the parties is in a position to dominate the will of the other party. Thus the one dominating party uses that position to obtain an unfair advantage over the other party.
Illustration- ‘A’ a religious guru influenced ‘B’ his disciple to donate his property in gift by promising to secure benefits to ‘B’ in the next birth. Here, ‘B’ under influence donates his property to the ‘A’.

            c. Fraud- Any of the following act committed by a party to a contract or with his connivance or by his agent with intent to deceive another party thereto or his agent or to induce him to enter into the contract-
a. Knowingly suggests any fact which he knows is not true.
b. Knowingly conceals any fact by having knowledge or belief of the fact.
c. Knowingly made a promise without any intention of performing it.
d. Knowingly committed any act to deceive the other party.
e. Any act or omission of an act which law declares to be fraudulent.

            d. Mistake- A mistake is when one party to a contract misunderstood the other party or when both the parties misunderstood each other. Therefore, the contract is considered as a void contract.
Illustration- ‘A’ made an offer to ‘B’ to sell his horse. ‘A’ intended to sell his black horse but ‘B’ believed that ‘A’ would sell his white horse. Therefore the terms of the contract were not certain. There was no meeting of mind.

           e. Misrepresentation-When a person asserts something which is not true though he believes it to be true. There was no malafide intention on the behalf of the person asserting the facts.
Case Law-
In the case of Derry v/s Peak [(1889) LR 14 App Cas 337], a company issued a prospectus to run tramways with steam or mechanical power rather than animal power. The directors believed that the Board of trade will accord its sanction but it refused to accord the sanction. The respondent who had taken shares bought an action for the tort of deceit. House of Lords held that statement has not been made with an intention to deceive hence no fraud is committed by the company.

6. Lawful Object-The object of the contract must be lawful and legal.

7. Certainty of Performance-The terms of contract must be certain because any contract which is uncertain or not capable of being made certain is considered void. Also the contract must be capable of performance and should not enforce impossible act.

Classification of Contract-

1. Valid Contract-An agreement which satisfies all the requirements prescribed by law.
2. Voidable Contract-An agreement which is enforceable by law at the option of one or more the parties but not at the option of the others.
3. Void Contract- A contract is a void contract when the both parties to an agreement are:-
a. Under mistake of facts
b. The consideration or object of an agreement is unlawful.
c. The agreement made without consideration.
d. The agreement is in restrain of marriage.
e. There is a restraint of trade.
f. The agreement is in restrain legal proceeding.

4. Illegal Contract- A contract which is immoral, opposed to public policy and forbidden by law are illegal contract.

5. Unenforceable Contract- A contract which is a valid contract but the court will not enforce that contract. Therefore, if both the parties perform the contract then it will be valid contract. However, the parties cannot go to the court for the performance of the contracts.

Conclusion-
The Indian Contract Act plays a major role in the day to day life of a person. Many of the time people enter into contract without realizing it. Thus, to avoid legal issues in the future parties must consider the relevant facts affecting the contract prior to the formation of the contract.

-Shrinkhla
Associate at Aggarwals & Associates, S.A.S Nagar, Mohali