Legally, a tenant cannot claim for Force Majeure, and refuse to pay rent to the landlord; even the Rent/Lease agreement is having a clause for Force Majeure.
As per the order/direction of the Ministry of Home Affairs, which issued under the Disaster Management Act, A landlord should stop from demanding rent from poor workers and migrant laborers for one month, and further strict action can be taken against the landlords who force to evict their tenants, wherever the workers including the migrants are living in the rented accommodation.
Hence,
it is clear that, this order /direction would be applied with the poor workers
and migrant labors, and not for all the tenants, and it specifically not
applied for a businessman.
Further,
a rent /lease agreement is a contract between the Landlord and Tenant under the
Indian Contract Act, 1872, but after execution of rent /lease agreement, a
transfer of property takes place, hence the lease governed under the Transfer
of Property Act.
Further,
as per Section 108(c) of the Transfer of property Act, when the lessee/tenant
is put in possession, then it is the duty of the landlord to allow the tenant
to continue in possession without any interruption, and further the lessee
/tenant is bond to pay the rent to the lessor/landlord at the proper time and
place.
Further,
as per Section 108(e) of the Transfer of property Act, If by fire, tempest or
flood or violence of any army or of a mob or other irresistible force any
material part of the property be wholly destroyed or rendered substantially and
permanently unfit for the purpose for which it was let, the lease shall, at the
option of the lessee be void etc.
Since,
the present crisis i.e. Covid-19 has neither destroyed the tenanted premises ,
and nor the tenanted premises became permanently unfit for the purpose of
living , hence even the provision of 108(c) of the Transfer of property Act are
also not applicable here . Hence, it is clear that a tenant cannot claim for
force majeure and refuse to pay rent to the landlord legally on the ground of
Covid-19 lockdown, and also a tenant cannot reduce the rent, unless there is
specific clause in the rent/lease agreement. And also when the tenant even
during the lockdown period used the tenanted premises as usual and avails the
services, so the tenant cannot take relief under the force majeure clause as
well.
Recently
the Supreme Court of India refused to entertain a plea seeking direction to the
Center to ensure compliance with the Ministry of Home Affairs order, directing
landlords to neither ask students and laborers to vacate the premises nor to
seek rent for a month during the Covid- 19 lockdown. Further the Supreme Court
was pleased to dismiss the plea and said the apex court cannot implement the
orders of the Government.
Delhi High Court also in the case of Ramanand and others Versus Girish Soni and another, also rejected a tenant’s application for suspension of rent, claimed on the basis of Force Majeure, and granted only deferment, postponement of rentals. Further, the Delhi High Court held that my existence of a Force Majeure clause in an agreement would not entitle a tenant to a waiver, and the suspension of rent during lockdown period cannot be sought on the ground of lockdown or non use of the premises during lockdown.
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