The ongoing pandemic has put many people over the world in a financial crunch. The lower strata of society are particularly going through trying times. In the current scenario, many are living a hand to mouth existence. There are many who live in rental accommodations and payment of monthly rent has become a challenge for many due to non receipt of salary. The government has requested landlords to excuse non- payment during these crucial times and not to resort to eviction on the basis of the Disaster Management Act of 2005.
Here is an interview with Advocate P. B. Balaji who is a specialist in this field.
What do you think about the move of the government using the Disaster Management Act requesting landlords to excuse non- payment and not to resort to eviction?
It can be said to be an advisory statement which will not bind or compel a landlord to waive or excuse non- payment during this lockdown period. Only the lease agreement between the landlord and tenant will govern and bind the parties.
Generally do all rental agreements have a force majeure clause? If there is no such clause, what relief is a tenant entitled to?
Commercial leases generally have a clause pertaining to force majeure. Residential leases may not have one except for an Act of God clause. If the agreement does have such a FM clause and is lawful, valid and duly registered as per law, the tenant will be well within his rights to take that as a defense and avoid payment of rent. However, if there is no such clause, the tenant will not able to take this defense.
In the current scenario, do you foresee a spurt in the number of cases before the Rent Courts?
Yes, definitely, there will be a flood of cases in the near future before the Rent Courts set up under the new act due to defaults committed during the lockdown period.
Does the Rent Court have a right to restrain a landlord from termination of the agreement due to a breach committed by the tenant based on humanitarian grounds?
No, the Rent Courts do not have the power to do so. The new act totally respects the agreement between the parties. However, the Act itself permits a tenant to pay up the arrears and avoid eviction. He can make payment after receipt of statutory notice or within 30 days of receipt of the court notice.
Do you have any suggestions to make in this context?
A situation has arisen for which neither the tenant nor the landlord is at fault. Maybe landlords on their part wherever they can afford to, can be a little flexible and consider waiving a part of the rent or at least give reasonable time to the tenants to pay the rent due. As the saying goes, “A bad compromise is better than a good case.”
