Home  /  Haryana Urban (Control of Rent and Eviction) Act, 1973  /  Section 8

Section 8: Increase of rent on account of payment of rates, etc., of local authority

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

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1973
Section 7 All 24 Sections of Haryana Urban (Control of Rent and Eviction) Act, 1973 Section 9

Legal Commentary & Landmark Judgments: Section 8

Section 8 entitles the landlord to pass on newly levied or enhanced municipal cesses, rates, and taxes to the tenant, conditioning the increase upon prior written notice and capping the enhancement at actual fiscal outgo.

  • Statutory Right to Pass On Enhanced Local Taxes: Authorizes the landlord to increase the rent where, subsequent to tenancy commencement, a fresh rate, cess, or tax is levied on the building or rented land by a local authority, or where an existing tax is enhanced.
  • Proportionality and Actual Outgo Limitation: Caps the permissible rent increase strictly to the exact quantum of the fresh tax or incremental enhancement actually paid by the landlord, prohibiting profit-making or inflated tax levies.
  • Mandatory Condition Precedent of Written Notice: Prescribes under Section 8(3) that the enhanced rent becomes payable exclusively from the date of dispatch of a written notice by the landlord to the tenant.
Key Landmark Precedents:
  • Karamjit Kaur v. Gian Chand, 1994 (2) RCR (Rent) 523 (P&H): Held that a landlord cannot unilaterally enhance rent under Section 8 without serving a statutory written notice showing the exact municipal assessment and apportioned tax attributable to the tenanted premises.
  • Bimla Devi v. Banarsi Dass, 1986 (1) RCR (Rent) 601 (P&H): Held that dispatch of written notice is an indispensable condition precedent under Section 8(3); enhanced municipal rates cannot be claimed retrospectively prior to the date of postal dispatch.
  • State of Punjab v. British India Corporation Ltd., AIR 1963 SC 1459: Affirmed that the right of a property owner to pass on local property taxes to occupiers is strictly governed by statutory enabling provisions, which must be strictly construed against the landlord.
Courtroom Practice & Strategic Litigation Guidance:

When advising a landlord seeking to recover enhanced property tax or house tax from a commercial tenant under Section 8, obtain certified copies of the municipal assessment order and official tax receipt. Issue a formal statutory notice via registered post specifying the date of dispatch, the base tax, the enhanced levy, and the exact monthly apportionment. The increase takes effect only from the date of dispatch.

Section 7 All 24 Sections of Haryana Urban (Control of Rent and Eviction) Act, 1973 Section 9