Ordinance to govern rent agreements issued

November 22, 2007
LAHORE

THE Punjab Government has introduced the “Punjab Rented Premises Ordinance 2007” under which “Rent Tribunals” as well as office of “Rent Registrars’ are being established at the district level for settling disputes between tenants and landlords.

The Punjab Rented Ordinance 2007 makes it binding upon the tenant and the landlord for evolving a tenancy agreement and to present it before the rent registrar for its registration.

The tenancy agreement shall contain particulars of the land lord and the tenant, descriptions of the premises, period of tenancy, rate of rent, rate of enhancement, due date, mode of payment of rent, particulars of the bank account of the landlord, if the rent is to be paid through the bank, the purpose for which the premises is laid out and amount of advance rent, security and pagri.

As for the payment of rent is concerned, the ordinance states that if the tenure of tenancy is fixed out but a rent is fixed only for a part of the tenure - in the absence of any stipulation to the contrary in the tenancy agreement - the rent shall be deemed to remain the same for the whole of the tenure. Moreover, the tenant will have to pay or tender the rent to the landlord in the mode and by the date mentioned in the tenancy agreement.

It is made binding upon the tenant and the landlord for bringing the tenancy in conformity with the provisions of this ordinance within two years otherwise the Rent Tribunal shall not entertain an application of dispute. The tenant will have to deposit a fine equivalent to five percent of the annual value of the rent of the premises in the government treasury while the landlord will have to deposit ten per cent annual value of the rent if they do not conform to the provisions of this ordinance.

Under this ordinance, the landlord will have to provide a certified copy of the tenancy agreement to the tenant, repair the premises for keeping it in habitable condition and pay the tax and fee or charge levied on the premises.

Nevertheless, the tenant cannot cut off, suspend or withhold without just or sufficient cause an amenity, utility or easement of the premises and enter the premises without giving the tenant a reasonable notice. In case the landlord fail to fulfil the obligation mentioned in the ordinance, the tenant may file an application in the Rent Tribunal which will issue appropriate orders for getting relief to the aggrieved party.

The tenant under the ordinance has the obligation to keep the premises in the condition in which it was let out expect normal wear and tear, use the premises for the purpose for which it was let out, allow the landlord to enter the premises for the purpose of inspection or repair, handover the vacant possession of the premises to the premises to the landlord on the determination of tenancy, not cause nuisance to neighbours and not make a structural change in the premises with prior written consent of the landlord. On tenant’s failure of fulfilling the abovementioned conditions, the landlord after extending him a written notice specifying the acts of omission and the remedial action within specified time may file an application seeking justice from the Rent Tribunal.

The Rent Tribunal which will be established in each district shall consist of one or more special judges (rent) to be appointed by the government in consultation with the Lahore High Court and the LHC may empower a civil judge or a judicial magistrate to act as Rent Tribunal.

The Rent Registrar appointed by the provincial government shall maintain a register to enter particulars of a tenancy agreement in respect of rented premises.

In case an application under this Ordinance for deposit of rent is filed, the Rent Tribunal shall issue notice to the respondent in the form prescribed in the schedule for appearance of the respondent on a date not later than ten days through process server, registered post acknowledgement and courier service.

The Rent Tribunal shall pass a final order on an application, as expeditiously as possible, but not latter than four months from the date of filing of the application. Any person aggrieved by a final order may within, thirty days make an appeal in writing to the district and sessions judge.

No appeal shall lie against an order passed by a district judge or an additional district and sessions judge.

The Punjab Rented Premises Ordinance 2007 was the initiative of Law Secretary Shaikh Ahmed Farooq, who after deliberations and diligent work of three years brought the law in force. Talking to The News, Law Secretary Shaikh Ahmed Farooq said the ordinance would help resolve disputes between the landlord and the tenant expeditiously.