Bare Acts

CHAPTER IV DEPOSIT OF RENT


26. Receipt to be given for rent paid.—(1) Every tenant shall pay rent within the time fixed by contract
or in the absence of such contract, by the fifteenth day of the month next following the month for which it
is payable 1
[and where any default occurs in the payment of rent, the tenant shall be liable to pay simple
interest at the rate of fifteen per cent, per annum from the date on which such payment of rent is due to the
date on which it is paid.]
(2) Every tenant who makes a payment of rent to his landlord shall be entitled to obtain forthwith from
the landlord or his authorised agent a written receipt for the amount paid to him, signed by the landlord or
his authorised agent:
2
[Provided that it shall be open to the tenant to remit the rent to his landlord by postal money order.]
(3) If the landlord or his authorised agent refuses or neglects to deliver to the tenant a receipt referred
to in sub-section (2), the Controller may, on an application made to him in this behalf by the tenant within
two months from the date of payment and after hearing the landlord or his authorised agent, by order direct
the landlord or his authorised agent to pay to the tenant, by way of damages, such sum not exceeding double
the amount of rent paid by the tenant and the costs of the application and shall also grant a certificate to the
tenant in respect of the rent paid.
27. Deposit of rent by the tenant.—(1) Where the landlord does not accept any rent tendered by the
tenant within the time referred to in section 26 of refuses or neglects to deliver a receipt referred to therein
or where there is a bona fide doubt as to the person or persons to whom the rent is payable, the tenant may
deposit such rent with the Controller in the prescribed manner:
3
[Provided that in cases where there is a bona fide doubt as to the person or persons to whom the rent
is payable, the tenant may remit such rent to the Controller by postal money order.]
(2) The deposit shall be accompanied by an application by the tenant containing the following
particulars, namely:—
(a) the premises for which the rent is deposited with a description sufficient for identifying the
premises;
(b) the period for which the rent is deposited;
(c) the name and address of the landlord or the person or persons claiming to be entitled to such
rent;
(d) the reasons and circumstances for which the application for depositing the rent is made;
(e) such other particulars as may be prescribed.
(3) On such deposit of the rent being made, the Controller shall send in the prescribed manner a copy
or copies of the application to the landlord or persons claiming to be entitled to the rent with an endorsement
of the date of the deposit.
(4) If an application is made for the withdrawal of any deposit of rent, the Controller shall, if satisfied
that the applicant is the person entitled to receive the rent deposited, order the amount of the rent to be paid
to him in the manner prescribed:
Provided that no order for payment of any deposit of rent shall be made by the Controller under this
sub-section without giving all persons named by the tenant in his application under sub-section (2) as

1. Added by Act 57 of 1988, s. 14 (w.e.f. 1-12-1988).
2. Ins. by s. 14, ibid. (w.e.f. 1-12-1988).
3. Ins. by s. 15, ibid. (w.e.f. 1-12-1988).
20
claiming to be entitled to payment of such rent an opportunity of being heard and such order shall be without
prejudice to the rights of such persons to receive such rent being decided by a court of competent
jurisdiction.
(5) If at the time of filing the application under sub-section (4), but not after the expiry of thirty days
from receiving the notice of deposit, the landlord or the person or persons claiming to be entitled to the rent
complains or complain to the Controller that the statements in the tenant's application of the reasons and
circumstances which led him to deposit the rent are untrue, the Controller, after giving the tenant an
opportunity of being heard, may levy on the tenant a fine which may extend to an amount equal to two
months’ rent, if the Controller is satisfied that the said statements were materially untrue and may order
that a sum out of the fine realised be paid to the landlord as compensation.
(6) The Controller may, on the complaint of the tenant and after giving an opportunity to the landlord
of being heard, levy on the landlord a fine which may extend to an amount equal to two months' rent, if the
Controller is satisfied that the landlord, without any reasonable cause, refused to accept rent though tendered
to him within the time referred to in section 26 and may further order that a sum out of the fine realised be
paid to the tenant as compensation.
28.Time limit for making deposit and consequences of incorrect particulars in application for
deposit.—(1) No rent deposited under section 27 shall be considered to have been validly deposited under
that section, unless the deposit is made within twenty-one days of the time referred to in section 26 for
payment of the rent.
(2) No such deposit shall be considered to have been validly made, if the tenant wilfully makes any
false statement in his application for depositing the rent, unless the landlord has withdrawn the amount
deposited before the date of filing an application for the recovery of possession of the premises from the
tenant.
(3) If the rent is deposited within the time mentioned in sub-section (1) and does not cease to be a valid
deposit for the reason mentioned in sub-section (2), the deposit shall constitute payment of rent to the
landlord, as if the amount deposited had been validly tendered.
29. Saving as to acceptance of rent and forfeiture of rent in deposit.—(1) The withdrawal of rent
deposited under section 27 in the manner provided therein shall not operate as an admission against the
person withdrawing it of the correctness of the rate of rent, the period of default, the amount due, or of any
other facts stated in the tenant's application for depositing the rent under the said section.
(2) Any rent in deposit which is not withdrawn by the landlord or by the person or persons entitled to
receive such rent shall be forfeited to Government by an order made by the Controller, if it is not withdrawn
before the expiration of five years from the date of posting of the notice of deposit.
(3) Before passing an order of forfeiture the Controller shall give notice to the landlord or the person
or persons entitled to receive the rent in deposit by registered post at the last known address of such landlord
or person or persons and shall also publish the notice in his office and in any local newspaper.

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