Section 7 of Delhi Rent Control Act 1958 - Lawful Increase of Standard Rent and Recovery of Other Charges
Section 7 of the Delhi Rent Control Act, 1958 regulates two specific matters: an increase in standard rent where qualifying expenditure has been incurred on improvements, additions or structural alterations, and recovery by a landlord of certain charges ordinarily payable by the tenant.
Meaning and scope of Section 7
Under the Delhi Rent Control Act, a "lawful increase" is an increase in rent permitted by the Act. Section 7 identifies circumstances in which the standard rent may be lawfully increased because of qualifying expenditure on the premises. It separately deals with reimbursement of specified charges paid by the landlord but ordinarily payable by the tenant.
Section 7(1): Increase for improvements, additions or structural alterations
Section 7(1) applies where the landlord has incurred expenditure on an improvement, addition or structural alteration and the cost has not already been taken into account while determining the rent. Expenditure merely on decoration or on tenantable repairs necessary or usual for the premises is excluded.
For expenditure incurred after commencement of the Act, the provision requires written approval of the tenant or the Controller. Where its requirements are fulfilled, the landlord may lawfully increase the standard rent per year by an amount not exceeding ten per cent of the qualifying cost.
Section 7(2): Recovery of electricity, water and other charges
Where the landlord pays a charge for electricity or water consumed in the premises, or another charge levied by a local authority which is ordinarily payable by the tenant, Section 7(2) permits recovery of the amount so paid from the tenant.
The provision, however, restricts recovery from the tenant of tax on the building or land imposed in respect of the premises occupied by the tenant, whether through an increase in rent or otherwise. The statutory proviso preserves a tenant's liability arising from an agreement entered into before 1 January 1952 to pay such tax.
Text of Section 7
7. Lawful increase of standard rent in certain cases and recovery of other charges.
(1) Where a landlord has at any time, before the commencement of this Act with or without the approval of the tenant or after the commencement of this Act with the written approval of the tenant or of the Controller, incurred expenditure for any improvement, addition or structural alteration in the premises, not being expenditure on decoration or tenantable repairs necessary or usual for such premises, and the cost of that improvement, addition or alteration has not been taken into account in determining the rent of the premises, the landlord may lawfully increase the standard rent per year by an amount not exceeding ten per cent of such cost.
(2) Where a landlord pays in respect of the premises any charge for electricity or water consumed in the premises or any other charge levied by a local authority having jurisdiction in the area which is ordinarily payable by the tenant, he may recover from the tenant the amount so paid by him; but the landlord shall not recover from the tenant whether by means of an increase in rent or otherwise the amount of any tax on building or land imposed in respect of the premises occupied by the tenant:
Provided that nothing in this sub-section shall affect the liability of any tenant under an agreement entered into before the 1st day of January, 1952, whether express or implied, to pay from time to time the amount of any such tax as aforesaid.
Amendment relating to the percentage
The expression "ten per cent" in Section 7(1) replaced the earlier "seven and one-half per cent" with effect from 1 December 1988. The current India Code text reflects the ten per cent figure.
Practical points
The expenditure must concern an improvement, addition or structural alteration of the kind covered by the section; its cost must not already have been factored into the rent; and the approval requirement applicable to post-commencement expenditure must be satisfied. A proposed increase should also be considered together with Section 8, which governs notice of increase of rent, and Section 9 where determination by the Controller becomes relevant.
Official legal source
For the authoritative consolidated text, amendments and footnotes, see the Delhi Rent Control Act, 1958 on India Code.
Legal information: This page provides general statutory information. Application of the provision depends on the facts, tenancy documents and other applicable provisions of law.