NOTE ON STATUTORY TENANCY
Definition of "Tenant"- Section 2(l)
A tenant refers to any person who pays or is obligated to pay rent for a premises, either
on their behalf or through another person. The definition includes specific categories:
1. Primary Tenant:
o The individual who directly enters into a tenancy agreement with the
landlord.
2. Sub-Tenant:
o Any individual who has been sublet the premises with or without the
landlord's consent, depending on the legal provisions.
3. Statutory Tenant:
o A person who continues to occupy the premises after the termination of
their tenancy, under the protection of rent control laws.
4. Successor Tenant:
o Family members who succeed to the tenancy rights after the death of a
statutory tenant, provided they meet certain conditions and follow the
specified order of succession.
Definition of Statutory Tenancy
Statutory tenancy arises when a tenant continues to occupy a rented premises after the
expiration or termination of their contractual tenancy. Under statutory tenancy, the
tenant enjoys protection from eviction except on specific grounds provided in rent
control laws. This type of tenancy is governed not by the original contract but by the
provisions of rent control legislation.
Hereditary Nature of Statutory Tenancy
Statutory tenancy can be inherited by specified legal heirs upon the death of the statutory
tenant, ensuring continuity of rights to occupy the premises. This heritability is subject to
conditions laid out in the relevant rent control statutes.
Heritability of Statutory Tenancy
1. Applicability of Section 2(l):
o The definition of "tenant" under Section 2(l) includes individuals who
continue in possession after the termination of their tenancy (statutory
tenants). It also extends this definition to family members in the event of
the statutory tenant’s death, provided they meet the conditions of
succession.
2. Eligibility for Succession:
o The family members listed in Section 2(l)—spouse, children, parents, or
widow of a predeceased son—can inherit the rights of a statutory tenant,
provided they were:
▪ Ordinarily residing in the premises at the time of the tenant's death.
▪ Financially dependent on the deceased tenant (with limitations for
independent successors).
3. Conditions for Heritability:
o Ordinary Residence: The successor must have lived with the statutory
tenant up to their death.
o Financial Dependency: If the successor is not financially dependent, they
can retain possession for only one year from the date of death.
o Non-Devolution Beyond Personal Right: The inherited tenancy right is
personal to the successor and cannot be further passed down.
4. Order of Succession:
o The succession follows the strict order outlined in Explanation I to
Section 2(l):
1. Surviving spouse.
2. Children (son/daughter).
3. Parents.
4. Widow of a predeceased son.
5. Extinguishment of Rights:
o If the successor does not meet these conditions, or if the time-limited right
(for non-dependent successors) expires, the tenancy rights cease and
revert to the landlord.
Case Laws
Smt. Gian Devi Anand v. Jeevan Kumar & Ors., - 1985
the Supreme Court held that statutory tenancy creates a heritable interest in property
unless explicitly restricted by law. The Court distinguished between residential and
commercial tenancies under the Delhi Rent Control Act. For residential premises,
heritability is regulated by Section 2(l), limiting succession to specific heirs and
conditions (e.g., financial dependence or ordinary residence with the deceased tenant).
However, for commercial premises, tenancy rights devolve under ordinary succession
laws without restrictions. Court affirmed that statutory tenancy extends beyond personal
rights and is inheritable, ensuring protection for tenants' families and continuity in
business operations. This decision highlighted the importance of legislative clarity in
balancing tenant protections and landlord rights.
Dr. RS Grewal & Ors. vs. Chander Prakash Soni & Anr., -2019
the Supreme Court held that a statutory tenant's protection under Rent Control Laws
persists beyond the landlord's death. The Court clarified that eviction of such tenants can
only occur by adhering to the prescribed procedures and grounds under law.
Emphasizing legislative intent, the Court stated that these protections serve to safeguard
tenant rights as a matter of policy. The tenancy, though created by a life-interest holder
to generate income for their sustenance by renting out the property, ensured statutory
protection for the tenant, which could not be negated by civil suits alleging trespass. This
judgment reinforces that tenants’ rights stem from statutory prescriptions, securing
occupancy despite changes in property ownership.
