Rent Restrictions Act, 1960

Determination of rent to be paid by tenants.

13.—(1) The rent to be paid by a tenant in respect of a controlled dwelling shall, subject to this Act, be determined in accordance with the following provisions:

(a) where the landlord and the tenant agree upon the rent to be paid by the tenant and the rent so agreed upon does not exceed the amount which is then the lawful rent of the dwelling, the rent so agreed upon shall, until varied by agreement or by a notice under this section, be and continue to be the rent to be paid by the tenant in respect of the dwelling;

(b) where the rent for the time being payable by the tenant is less than the lawful rent for the time being and the landlord serves on the tenant a notice under this section increasing the rent to an amount not exceeding the lawful rent for the time being, then, as from the date on which the notice takes effect, the rent as so increased shall, until varied by agreement or by a notice under this section, be and continue to be the rent to be paid by the tenant in respect of the dwelling;

(c) where the rent for the time being payable by the tenant exceeds the lawful rent for the time being and the tenant serves on the landlord a notice under this section reducing the rent to an amount equal to the lawful rent for the time being, then, as from the date on which the notice takes effect, the rent as so reduced shall, until varied by agreement or a notice under this section, be and continue to be the rent to be paid by the tenant in respect of the dwelling;

(d) where the rent to be paid by a statutory tenant has not been determined under any of the foregoing paragraphs of this subsection, the rent payable by the tenant for the time being in respect of the dwelling on the operative date, or the then lawful rent (whichever is the lesser), or if the statutory tenant has since the operative date held under any contract of tenancy, the rent last payable by him under that contract or the then lawful rent (whichever is the lesser) shall, subject to this section, be and continue to be the rent to be paid in respect of the dwelling;

(e) where the rent to be paid by a non-statutory tenant has not been determined under any of the foregoing paragraphs of this subsection, the rent payable by the tenant for the time being in respect of the dwelling on the operative date, or the then lawful rent (whichever is the lesser), or if the tenant holds under any contract of tenancy, the tenancy whereunder commenced subsequent to the operative date, the rent payable by him at the commencement of the tenancy or the then lawful rent (whichever is the lesser) shall, subject to this section, be and continue to be the rent to be paid in respect of the dwelling.

(2) In the case of a controlled dwelling to which section 9 of this Act applies and of which the basic rent has not been determined under that section, where the landlord serves on the tenant a notice under this section increasing the rent to a rent consisting of the aggregate of—

(a) the rent (to be specified in the notice) which the landlord considers would be determined by the Court as the basic rent, and

(b) the lawful additions (to be specified in the notice) which he considers could properly be added to that basic rent,

such increased rent shall, until varied by agreement or by the Court, be and continue to be the rent to be paid by the tenant in respect of the dwelling.

(3) Every notice served under this section shall be in the prescribed form, or a form substantially to the same effect, and shall contain the relevant particulars indicated by the form.

(4) The following provisions shall have effect with respect to notices under subsection (1) or subsection (2) of this section:

(a) in case—

(i) the notice purports to increase the rent payable by a non-statutory tenant to an amount exceeding the amount which would, under the terms of his contract of tenancy and disregarding any enactment (including this Act) by which any term thereof relating to rent is modified, be payable at the time when the notice is expressed to take effect, and

(ii) the increase is not an increase based solely on an increase of the rates payable on a dwelling any tenant of which has availed himself of this Act or of any of the former enactments relating to restriction of rent to obtain a reduction of the rent of the dwelling,

the notice shall take effect on the date mentioned in whichever of the following subparagraphs is applicable:

(I) if the tenancy could be legally determined on any day subsequent to service of the notice but not later than the date on which the notice is expressed to take effect, that date,

(II) if the tenancy could not be so determined, the earliest date on which, if the notice were a notice to quit, it would be effective to determine the tenancy;

(b) in any other case, the notice shall take effect on the expiry of seven clear days from the date of service.

(5) If a notice served under this section contains any statement or representation which is false or misleading in any material respect, the person making or causing to be made such statement or representation shall be guilty of an offence and shall, on summary conviction thereof, be liable to a fine not exceeding ten pounds unless he proves that the statement or representation was made innocently and without intent to deceive.

(6) At any time after the expiry of a notice under paragraph (b) of subsection (1) or under subsection (2) of this section increasing the rent of any controlled dwelling by an amount consisting of or including any sum in respect of the matters mentioned in paragraph (c), (d) or (e) of subsection (2) of section 10 of this Act, the Court may, on the application of the tenant, if satisfied either—

(i) that the expenditure (in so far as it is applicable to any of the said matters) in respect of which the notice was served was not incurred or was unnecessary in whole or in part, or

(ii) that the improvements, structural alterations or repairs have not been carried out satisfactorily,

disallow or reduce the increase accordingly, as from such date (whether before the date of the application or otherwise) as the Court thinks fit.