Allahabad HC Strikes Down Key Provisions Of UP Tenancy Act, Cites Conflict With TPA

Lucknow, Aug 26 (KNN) The Allahabad High Court has struck down key provisions of the Uttar Pradesh Regulation of Urban Premises Tenancy Act, 2021, finding its rent revision, rent determination and eviction provisions inconsistent with the Transfer of Property Act, 1882.

A Division Bench of Justice Saumitra Dayal Singh and Justice Swarupama Chaturvedi held Sections 8, 9 and 10, along with provisions empowering Rent Authorities to order evictions, contrary to landlords’ and tenants’ rights under the TPA.

The court also declared Sections 38 and 42, to the extent they override procedures under the Provincial Small Cause Courts Act, 1887, ultra vires. The judgment came in a batch of 16 petitions challenging the Act and Rent Authority orders.

State Law Cannot Override Parliamentary Legislation

The Bench held that tenancy laws relating to buildings fall under the Concurrent List, not the State List. It said a State law overriding existing Parliamentary legislation requires Presidential assent under Article 254(2).

Relying on Supreme Court precedents, the court found the 2021 Act’s eviction provisions inconsistent with Section 111 of the TPA, which governs lease termination. It also held that additional eviction grounds and penal rent provisions conflicted with rights and liabilities under the TPA.

Repealed 1972 Rent Law Revived

Consequent to the court's findings, Sections 8, 9, 10, 38 and 42 of the 2021 Act were declared ultra vires with effect from the date of the judgment.

The court held that the repealed 1972 rent control legislation would revive to the extent necessary to address the invalidity, while the TPA, Provincial Small Cause Courts Act and U.P. Civil Laws (Amendment) Act would govern fresh proceedings.

Proceedings already concluded under the 2021 Act and not challenged were saved, while the individual orders challenged in the petitions were quashed.

Lead Case Involved Agra Commercial Premises

In the lead case, a commercial property leased by Agra Municipal Corporation in 1947 became subject to eviction and rent-recovery proceedings in 2008. 

After the 2021 Act came into force, the landlady sought provisional rent fixation, resulting in an ex parte increase from Rs 1,000 to Rs 750 per sq ft, reiterated in 2024.

Similar rent and eviction orders involving tenants in Agra and Farrukhabad were also challenged. The High Court allowed the petitions and quashed the impugned orders, with no order as to costs.

Impact on MSMEs

The ruling provides greater legal clarity for MSMEs operating from rented commercial premises in Uttar Pradesh by limiting arbitrary rent increases and eviction measures. It can help small businesses manage occupancy costs and reduce uncertainty in tenancy-related disputes. 

(KNN Bureau)