HC Rejects NRI Landlord's Eviction Plea, Allows Tenant to Stay
Key Highlights
- The Punjab and Haryana High Court has ruled in favour of a tenant who refused to vacate her rented house in Jagraon, Punjab.
- The landlord's eviction plea failed because he relied on a legal provision meant for NRI landlords that had already been repealed.
- The court rejected the landlord's alternative argument that the property was exempt from the Punjab Rent Act, 1995.
A recent ruling by the Punjab and Haryana High Court has dealt a blow to a landlord's bid to evict his tenant. Abhiraj Gandhi, from her rented house in Jagraon, Punjab. The court ruled in favour of Gandhi, rejecting the landlord's plea seeking her eviction.
Gandhi had rented the property from the landlord after he moved to Canada in 2020. The rental agreement was reportedly made for Rs 20,000 a month. This is significantly higher than the market rate for similar properties in the area.
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The landlord had sought to regain possession of the property after Gandhi declined his request to vacate it. He claimed that he needed the house for his own use during his visits to India, citing difficulty finding suitable accommodation.
The Punjab and Haryana High Court ruled that the landlord's plea lacked merit. As the legal provision relied upon by him was no longer applicable. The court also rejected his alternative argument that the property fell outside the scope of the East Punjab Urban Rent Restriction Act, 1949.
The court's decision has significant implications for landlords and tenants in Punjab. The East Punjab Urban Rent Restriction Act. 1949, which governs rent control in the state, was amended in 2021 to increase the ceiling on rentals.
However, the amendment does not apply to properties rented before the amendment came into effect.
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The landlord has expressed disappointment with the court's decision, stating that he will explore alternative remedies under applicable law. The tenant, on the other hand, has welcomed the ruling, which she believes is a victory for her rights as a tenant.
In 2012, the landlord had purchased the property and initially lived there himself. He then rented it out to Gandhi after moving to Canada in 2020. The case has highlighted the complexities of rent control laws in Punjab and the need for clarity on the application of these laws.
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I write about the forces shaping business and the global economy, from startup growth and changing markets to international trade and policy. My work focuses on breaking down complex developments into clear, practical insights and understanding what they could mean for businesses, investors, and the wider economy.
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