Landmark Decision Affirms Applicability of Uttar Pradesh Regulation of Urban Premises Tenancy Act, 2021 to Oral Tenancies
In a significant ruling, the Allahabad High Court has affirmed that oral tenancies fall within the ambit of the Uttar Pradesh Regulation of Urban Premises Tenancy Act, 2021, maintaining the jurisdiction of the Rent Authority even in the absence of a formal written tenancy agreement. The decision was delivered by Dr. Yogendra Kumar Srivastava, J., in a case involving petitions that raised the issue of whether the lack of a written tenancy agreement precludes the Rent Authority from adjudicating disputes under the Act.
The case involved two petitions, one by Akhilesh Kumar and another by Smt. Suman Dwivedi, challenging the maintainability of proceedings before the Rent Authority in Jhansi. Both petitioners contended that their tenancies were based on oral arrangements, arguing that the absence of written agreements rendered the proceedings non-maintainable under the Act, 2021. They asserted that such disputes should be adjudicated by the Court of Small Causes instead.
The High Court, however, dismissed these petitions, clarifying that the Act, 2021 does not exclude oral or unwritten tenancies from its statutory ambit. The Court emphasized that procedural non-compliance, such as failure to execute or furnish a written tenancy agreement, does not oust the jurisdiction of the Rent Authority where the landlord-tenant relationship is admitted or otherwise established. The ruling pointed out that Sections 4, 21, and 38 of the Act must be construed harmoniously to preserve the remedial efficacy of the statute and avoid creating a jurisdictional vacuum.
Dr. Srivastava noted that the Act is designed to regulate urban tenancies comprehensively, aiming to replace informal arrangements with a structured framework of transparency, certainty, and expeditious adjudication. The judgment stressed that the Act's remedial framework must remain effective even in cases of imperfect procedural compliance, ensuring that landlords and tenants are not left without a legal remedy.
The Court's decision reflects a shift towards a more inclusive interpretation of the Act, aligning with its legislative purpose to regulate and adjudicate urban tenancy disputes efficiently. This ruling is expected to have a wide-reaching impact, given the prevalence of oral tenancies in urban areas across Uttar Pradesh, where many tenancy agreements are not formalized in writing.
The decision also sheds light on the legislative intent behind the Act, underscoring the importance of harmonizing statutory provisions to avoid procedural complexities and multiplicity of proceedings. It reinforces the jurisdiction of the Rent Authority and Rent Tribunal as specialized fora for tenancy disputes, thereby providing clarity and consistency in the application of the law.
Bottom line:-
The Uttar Pradesh Regulation of Urban Premises Tenancy Act, 2021 does not exclude oral or unwritten tenancies from its statutory ambit merely because tenancy agreements are not reduced into writing or particulars are not furnished before the Rent Authority. Proceedings before the Rent Authority remain maintainable where the landlord-tenant relationship is admitted or otherwise established.
Statutory provision(s): Sections 4, 21, 38, and 42 of the Uttar Pradesh Regulation of Urban Premises Tenancy Act, 2021
Akhilesh Kumar v. Sanjay Sahgal, (Allahabad) : Law Finder Doc id # 2902604
