Section 21: Proceedings for release of building under occupation of tenant

(1) The prescribed authority may, on an application of the landlord in that behalf, order the eviction of a tenant from the building under tenancy or any specified part thereof if it is satisfied that any of the following grounds exists; namely: --

(a) that the building is bona fide required either in its existing form or after demolition and new construction by the landlord for occupation by himself or any member of his family, or any person for whose benefit it is held by him, either for residential purposes or for purposes of any profession, trade or calling, or where the landlord is the trustee of a public charitable trust, for the objects of the trust ;

(b) that the building is in a dilapidated condition and is required for purposes of demolition and new construction :

Provided that where the building was in the occupation of a tenant since before its purchase by the landlord, such purchase being made after the commencement of this Act, no application shall be entertained on the grounds mentioned in clause (a), unless a period of three years has elapsed since the date of such purchase and the landlord has given a notice in that behalf to the tenant not less than six months before such application, and such notice may be given even before the expiration of the aforesaid period of three years :

Provided further that if any application under clause (a) is made in respect of [any building let out exclusively for non-residential purposes]¹, the prescribed authority while making the order of eviction shall, after considering all relevant facts of the case, award against the landlord to the tenant [an amount not exceeding two years rent]² as compensation and may, subject to rules, impose such other conditions as he thinks fit :

Provided also that no application under clause (a) shall be entertained-

(i) for the purposes of a charitable trust, the objects of which provide for discrimination in respect of its beneficiaries on the ground of religion, castes or place of birth ;

(ii) in the case of any residential building, for occupation for business purposes ;

(iii) in the case of any residential building, against any tenant who is a member of the armed forces of the Union and in whose favour the prescribed authority under the Indian Soldiers (Litigation) Act, 1925 has issued a certificate that he is serving under special conditions within the meaning of section 3 of that Act, or where he has died by enemy action while so serving then against his heirs :

[Provided also that the prescribed authority shall, except in cases provided for in the Explanation, take into account the likely hardship to the tenant from the grant of the application as against the likely hardship to the landlord from the refusal of the application and for that purpose shall have regard to such factors as may be prescribed.]³

Explanation-- In the case of a residential building :

(i) where the tenant or [who has been normally residing with or is wholly dependent on him]⁴ has built or has otherwise acquired in a vacant state or has got vacated after acquisition a residential building in the same city, municipality, notified area or town area, no objection by the tenant against an application under this sub-section shall be entertained;

[Note-- For the purposes of this clause a person shall be deemed to have otherwise acquired a building, if he is occupying a public building for residential purposes as a tenant, allottee or licensee.]⁵

(ii) [***]⁶

[(iii) where the landlord of any building is –

(1) a serving or retired Indian Soldier as defined in the Indian Soldiers) litigation, Act, 1925 and such building was let out at any time before his retirement; or

(2) a widow of such a soldier and such building was let out at any time before the retirement or death of her husband, whichever, occurred earlier;

and such landlord needs such building for occupation by himself or the members of his family for residential purposes, then his representation that he needs the building for residential purposes for himself or the members of his family shall be deemed sufficient for the purposes of clause (a) and where such landlord owns more than one building this provision shall apply in respect of one building only;]⁷

(iv) [***]⁸

[(1-A) Notwithstanding anything contained in section 2, the prescribed authority shall, on the application of a landlord in the behalf, order the eviction of a tenant from any building under tenancy, if it is satisfied that the landlord of such building was in occupation of a public building for residential purposes which he had to vacate on account of the cessation of his employment:

Provided that an application under this sub-section may also be given by a landlord in occupation of such public building at any time within a period of one year before the expected date of cessation of his employment, but the order of eviction on such application shall take effect only on the date of his actual cessation.]⁹

(2) The prescribed authority may on an application of the land- lord in that behalf order the eviction of a tenant from any surplus land appurtenant to the building under tenancy if it is satisfied that the land is required for constructing one or more new buildings, or for dividing it into several plots with a view to the sale thereof for purposes of construction of new buildings, and in either case, that the competent authority under any law for the time being in force has approved a plan for the said purpose.

Explanation-- Where the appurtenant land including passage exceeds double the covered area of the building, the excess area shall be deemed to be surplus land.

[(3) No order shall be made under sub-section (1) or sub-section (1-A) or sub-section (2), except after giving to the parties concerned a reasonable opportunity of being heard :

Provided that where the tenant being a servant of Government or of any local authority or any public sector corporation does not contest the application, then a reasonable opportunity of being heard shall be given to the District Magistrate, who shall have the right to oppose the application.]¹⁰

(4) An order under [sub-section (1) or sub-section (1-A) or sub-section (2)]¹¹ maybe made notwithstanding that the tenancy has not been determined :

Provided that no such order shall be made in the case of a tenancy created for a fixed term by a registered lease before the expiry of such term.

(5) On an order being made under [sub-section (1) or sub-section (1-A) or sub-section (2)]¹², the building or part or appurtenant land, as the case may be, shall stand released in favour of the landlord :

Provided that on the occurrence of any of the circumstances mentioned in section 24, any building or part thereof (but not appurtenant land alone) released as above, shall, without prejudice to the provisions of section 24, be deemed to become again subject to allotment in accordance with Chapter III.

(6) On the expiration of a period of thirty days from an order under [sub-section (1) or sub-section (1-A) or sub-section (2)]¹³, the tenancy of the tenant shall stand determined in its entirety or, as the case may be, in respect of any part of appurtenant land released in favour of the landlord, and in the latter case, the rent payable for the remainder of the building under tenancy shall be such as may be agreed upon between the parties and in the absence of such agreement as may be determined under section 8.

[(7) Where during the pendency of an application under clause (a) of sub-section (1), the landlord dies, his legal representatives shall be entitled to prosecute such application further on the basis of their own need in substitution of the need of the deceased.

(8) Nothing in clause (a) of sub-section (1) shall apply to a building let out to the State Government or to a local authority or to a public sector corporation or to a recognized educational institution unless the Prescribe Authority is satisfied that the landlord is a person to whom clause (ii) or clause (iv) of the Explanation to sub-section (1) is applicable:

Provided that in the case of such a building the District Magistrate may, on the application of the landlord, enhance the monthly rent payable therefor to a sum equivalent to one-twelfth of ten per cent of the market value of the building under tenancy, and the rent so enhanced shall be payable from the commencement of the month of tenancy following the date of the application:

Provided further that a similar application for further enhancement may be made after the expiration of a period of five years from the date of the last order of enhancement.]¹⁴