The Model Tenancy Act, 2019

The Model Tenancy Act, 2019

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.


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

New Consumer Protection Law in India

New Consumer Protection Law in India

The first consumer protection legislation i.e. Consumer Protection Act, 1986 is repealed with the new Consumer Protection Act, 2019 with effect from 20th July, 2020. The first legislation was introduced to guard consumer rights. However, with the advent of technology and introduction of e-commerce and various other mechanisms of conducting business, the necessity to bring changes in the previous legislation is felt to better protect modern-day consumers.

The new Act tends to provide protection to buyers not only from traditional sellers but also from new e-commerce retailers and platforms. This latest piece of legislation brings easement for buyers by recognizing online transactions as well as provides facility to institute complaints from place of residence or work.

What is the aim of Consumer Protection Act, 2019?

The essence of Consumer Protection Act, 2019 is to save rights of the customers by establishing authorities for timely and effective administration and effective redressal of customer’s complaints. It is established to protect the interests of customers.

Gist of Consumer Protection Act, 2019:

Broad definition of consumer: As per the new Act, a person is called a customer who avails the services and buys any good for self use. It is notable to mention here that if person buys any goods and any avail services for resale or commercial purpose, is not considered a customer. The definition covers all types of transactions i.e. offline or online.

Convenience to consumers: The new Act allows the consumer to file complaint before the authority under whose jurisdiction he/she resides or work. This new concept is opposed to the earlier trend of filing complaint at the place of seller. Complaint can also be filed via electronic mode and even proceedings of the same can take place via video conferencing on showing reasonable ground by the consumer. Period of limitation to file appeal before the State Commission against the order of District Commission has been increased from 30 days to 45 days. Second appeal is also maintainable before the National Commission under Section 51 (3) if it involves any substantial question of law.

Establishment of the Central Consumer Protection Authority: The authority also refers to CCPA which will be headed by Director-General to protect, promote and enforce the rights of customers. The CCPA will regulate the cases related to unfair trade practices, misleading advertisings and violation of consumer rights.

Investigation wing will be established in the authority to investigate and enquire violations under the Act. The CCPA will have right to impose penalty on violators and pass orders to recall goods or withdraw services, stop unfair trade practices and reimbursement of the price paid by the customers. National Commission is empowered to hear appeals against the orders of Central Consumer Protection Authority.

Establishment of Consumer Disputes Redressal Commission: The new Act renamed the District Consumer Disputes Redressal Forum as District Consumer Disputes Redressal Commission and also provides the establishments of Consumer Disputes Redressal Commissions at national and state levels. The Consumer Disputes Redressal Commissions will entertain the complaints with regard to following subject matters:-

  • Sale of defective goods or services
  • Overcharging or deceptive charging of goods or services.
  • Sale of hazardous goods or services which may be dangerous to life.
  • Unfair trade practices.

Penalty for misleading advertisement: The manufacturer can be punished with fine or imprisonment upto 2 years for misleading advertisement. On the repetition of the same may attract the fine of Rs. 50 lacs and imprisonment upto 5 years. Such power to impose penalty for false or misleading advertisement will vests with CCPA.

Jurisdiction: Before discussing more, it is important to know what does jurisdiction means. Jurisdiction is a power of court to try or hear cases under any specific area that area can be geographical or on the basis of specific subject matter or monetary limit. The Consumer Protection Act decides the jurisdiction of the court on the basis of monetary limit.

The new Act revised the monetary jurisdictions of consumer commissions. Now, National Consumer Disputes Redressal Commission will have jurisdiction to entertain the complaints worth more than Rs. 10 crores, State Commission will have jurisdiction to hear complaints when value is more than 1 crore but less than 10 crore. District Commission will hear complaints when value of goods or services is upto Rs 1 crore.

Recognition of mediation: The new Act provides statutory recognition to mediation under Section 74. To get quick justice in consumer disputes the   mechanism for promoting mediation in redressal of consumer disputes is provided.

Product liability: The new Act brings the concept of product liability according to the same; customer can demand compensation from the manufacturer, seller or service provider for the harm incurred by a defective product or deficiency in service.

Rights of consumers: The consumers will have following rights under the new Act:

  • To know about the quality, quantity, potency, purity, price and standard of goods and services.
  • Protection from hazardous goods and services.
  • To be shielded from unfair trade practices.
  • To have access to variety of goods or services at competitive prices.


With the introduction of various e-commerce platforms in business the need for new legislation for cover of consumers is felt, so to cater this need our Parliament brings amendment in the existing Consumer Protection Act to keep pace with the time. It was required to bring amendments under Consumer Protection Act as with advent of technology numerous questions arise for protection of consumers. The New Act broadens the definition of consumer and recognizes both offline and online transactions for purchase of products and services which can be proved as boon for consumers in future.

Kiranpreet Kaur

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