Section 7: Rent which should not have been paid may be recovered

Haryana Urban (Control of Rent and Eviction) Act, 1973 • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1973

Legal Commentary & Landmark Judgments: Section 7

Section 7 creates a statutory right of restitution and recovery for tenants who have paid sums in excess of permissible rent under the Act, establishing a six-month limitation period and authorizing direct deduction from accruing rent.

  • Statutory Cause of Action for Restitution: Grants the tenant an enforceable claim to recover any sum paid to the landlord or their legal representative which, by reason of the Act, should not have been paid.
  • Strict Six-Month Limitation Rule: Mandates that an application or suit for recovery of excess rent must be initiated within six months from the date of payment, establishing an absolute procedural limitation.
  • Right of Set-Off and Rent Deduction: Empowers the tenant to unilaterally deduct refundable excess payments from accruing monthly rent payable to the landlord, operating as a statutory defense against eviction for default.
Key Landmark Precedents:
  • Nand Lal v. Ganesh Das, AIR 1988 P&H 150: Held that the six-month limitation period under Section 7(1) applies strictly to independent proceedings for recovery of excess rent; however, adjustments against running rent under Section 7(2) remain available provided the deduction is asserted within the statutory timeframe.
  • K. Venkataramiah v. A. Bikshapathiah, (1970) 2 SCC 78: Ruled that special statutory remedies for recovery of rent paid in excess of statutory limits are governed strictly by the conditions and limitation periods prescribed within the rent statute itself.
  • Shri Krishna v. Jagdish Rai, 1984 (1) RCR (Rent) 412 (P&H): Held that payments made in excess of fair rent under mutual mistake or landlord coercion can be validly set off by the tenant against arrears demanded in an eviction petition, immunizing the tenant from ejectment under Section 13(2)(i).
Courtroom Practice & Strategic Litigation Guidance:

Act within the six-month statutory window upon discovering any overpayment. Serve a written notice of set-off on the landlord under Section 7(2) detailing payment dates, excess computations, and the specific upcoming months against which rent will be withheld. Retain proof of dispatch via registered post with acknowledgment due to repel eviction petitions based on non-payment.