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Islamabad Rent Restriction Ordinance, 2001

IV OF 2001 

An ordinance to regulate the relations between the landlords and tenants

of rented premises in the Islamabad Capital Territory;

whereas it is expedient to regulate the relations between the landlords and tenants of rented premises in the Islamabad Capital Territory and to provide for matters ancillary thereto or connected therewith;

and whereas the National Assembly and the Senate stand suspended in pursuance of the Proclamation of Emergency of the fourteenth day of October 1999, and the Provisional Constitution Order No. 1 of 1999;

AND whereas the President is satisfied that circumstances exist which render it necessary to take immediate action;

Now, THEREFORE, in pursuance of the Proclamation of Emergency of the fourteenth day of October, 1999, and the Provisional Constitution Order No. 1 of 1999, read with the Provisional Constitution (Amendment) Order, 1999 (Order No. 9 of 1999), and in exercise of all powers enabling him in that behalf, the President of the Islamic Republic of Pakistan is pleased to make and promulgate the following Ordinance; –

1. Short title, extent, application and commencement. -(1) This Ordinance may he called the Islamabad Rent Restriction Ordinance, 2001.

(2) It shall extend to such urban area of Islamabad Capital Territory and apply to such buildings and rented lands as the Federal Government may, by notification in the official Gazette, specify.

(3) It shall come into force at once.

Definitions. -In this Ordinance, unless there is anything repugnant in the subject or context. –

(a) ‘Authority’ means the Capital Development Authority established under the Capital Development Authority Ordinance, I960 (XXIII of 1960);

(b) ‘building’ means any building or part thereof, together with all fittings and fixtures therein, if any, and includes any vacant land, garden, ground, godown and out-house attached or appurtenant thereto, but does not include any place of religious worship;

(c) ‘commercial building’ means a building constructed and used solely for the purpose of an office, business or trade;

(d) ‘Controller’ means a Controller of Rents appointed by the Federal Government from amongst persons holding a judicial office and includes an Additional Controller of Rent under this Ordinance;

(e) ‘fair rent’ means the rent of any building determined by the Controller under this Ordinance.

(t) ‘family‘ means spouse, dependent children and dependent parents;

(g) ‘landlord’ means the owner of the premises and includes any person for the time being authorized or entitled to receive rent in respect of any building or rented land, whether on his own account or on behalf, or for the benefit, of any other person, or as a trustee, guardian or receiver, and or a tenant who, being authorized under the terms of his lease so to do, sublets the building and every other person for the lime being deriving title from the landlord;

(h) ‘rented land’ means any land let separately for the purpose of being used principally for business or trade;

(i) ‘residential building’ means any building used for the purpose of residence, but does not include an office, a boarding house, hostel, or motel; and

(j) ‘tenant’ means any person who undertakes or is bound to pay rent as consideration for the possession or occupation of a building or rented land by him or by any other person on his behalf, and includes,-

(i) any person who continues lo be in possession or occupation after the termination of his tenancy; and
(ii) in the event of the death of the tenet, the members of his family who continue to he in possession or occupation of the building or rented land; and

(k) ‘Urban area’ means such area or areas of the Islamabad Capital Territory as the Federal Government may, by notification in the offi­cial Gazette specify

Power to exempt. -The Federal Government may, by notification in official Gazette, direct that all or any of the provisions of this Ordinance not apply to such building or buildings as are, or may be, used as Government offices:

Provided that such exemption shall not extend beyond the period of five from the date of completion of construction of such building as certified by the Authority.

Ordinance to override other Laws. -The provisions of this Ordinance shall have effect notwithstanding anything contained in any other law for the time being in force, or in any instrument or document.

Agreement between landlord and tenant. -(1) Every agreement for letting out a building or rented land shall be in writing and if such agreement is not compulsorily registerable under any law for the time being in force, it shall he attested the Controller by signing and affixing his seal thereto or any Civil Judge or Magistrate of the 1st Class:

Provided that nothing in this section shall affect any agreement executed between the landlord and tenant and in force immediately before the commence­ment of this Ordinance.

(2) A certified copy of an agreement for letting out a building or rented land where such agreement is compulsorily registerable under any law or where the agreement is not so registerable, the original deed duly attested under sub-sec­tion (1), shall he produced and accepted in evidence as a proof of the relationship of landlord and tenant.

Tenure of tenancy. – Subject to the provisions of section 17, no tenancy shall be valid beyond such period as the landlord and tenant may, by mutual agreement, fix before or after the commencement of the tenancy:

Provided that a tenancy in force before the commencement of this Ordinance for which no period is fixed shall cease to be valid on the expiration of a period of two years from such commencement:

Provided further that a tenancy which comes into force after the commencement of this Ordinance and for which no period is fixed shall not be valid after expiration of period of six months from the date of the receipt by the tenant of a notice in writing given by the landlord terminating the tenancy.

7 Appointment of Rent Controller. -(1) The Federal Government shall appoint one or more Rent Controllers for an urban area of the Islamabad Capital Territory.

(2) Where more than one Controller is appointed for urban area the Federal Government shall declare one of them to be the Senior Rent Controller.

(3) An application under this Ordinance shall he filed before the Controller having jurisdiction over the area where the building or rented land, in respect of which the application is made, is situated:

Provided that where there are more than one Controllers for an area, the application shall be made before the Senior Rent Controller who may either deal with it himself or make it over for disposal to other Controller.

Landlord and tenet to get agreement registered. The landlord and tenet shall, through mutual agreement, fix initial rent of a building, residential or non-residential rented land and get it registered with Controller within a week of the signing of the agreement.

9. Increase of rent in certain cases. – (1) Where the rent of any build­ing other than non-residential building or rented land has been determined by an agreement between the landlord and the tenant, no further increase in such rent shall, during the continuance of tenancy if it is less than three years, be permissible during the subsistence of the agreement except in cases where some addi­tion, alteration or improvement has been carried out at the landlord’s expense and on the request of the tenant in accordance with the by-laws of the Authority.

(2) The fair rent, as increased on the ground of some addition alteration or improvement under sub-section (I) shall not exceed the fair rent payable under this Ordinance for a similar building or rented land in the same locality with such addition, alteration or improvement and it shall not he chargeable until such addition, alteration or improvement has been completed.

(3) Any dispute between the landlord and tenant in regard to any increase claimed on ground of some addition, alteration or improvement shall be decided by the Controller.

Increase of rent of residential and non-residential buildings. – (I) The rent of residential as well as a non-residential building shall stand auto­matically increased at the end of every three years of its tenancy by twenty-five percent of the rent already being paid by the tenant.

(2) The first increase under sub-section (I) shall accrue on the comple­tion of three years of tenancy in the case of a tenancy which has not been exist­ing for three years on the commencement of this Ordinance.

(3) Where, during the period of three years, in cases mentioned in sub­section (2)-

(i) the rent has already been increased by an amount less than twenty-five per cent of the total rent the amount of such increase shall he deducted from the increase under sub-section (1); and

(ii) if the rent has already been increased by an amount equal to or more than twenty per cent of the total rent, no increase under, sub-section

(1) shall accrue until the expiry or three years from the date of such increase.

(4) The arrears becoming due as a result of the increase of rent under this section shall, unless paid earlier, he deemed to he rent due under clause (i) of sub-section (2) of section 17, on the expiry of sixty days from the date of commencement of this Ordinance.

(5) Nothing in sub-sections (1) 10 (4) shall apply if a landlord and a tenant agree to increase the rent by an agreement in writing.
11. Landlord not to claim in excess of fair rent. -The landlord shall not claim or receive any premium or oilier like sum in addition to fair rent or any rent in excess of such fair rent and any agreement for payment of any sum in addition to rent in excess of such fair rent shall he void.

12. Fine or premium not to be charged for grant, renewal or continuance of tenancy. -No landlord shall, in consideration of the grant, renewal or continuance of a tenancy of any building or rented land require the payment of any fine, premium or any other like sum in addition to the rent.

13. Money which should not have been paid may be recovered. -(1) Where after the commencement of this Ordinance any sum not payable by a tenant under this Ordinance has been paid by him, such sum may, without preju­dice to any other mode of recovery, be deducted by the tenant from the rent payable by him to the landlord:

Provided that no such deduction shall he made by the tenant unless it has been allowed by the Controller on an application made by the tenant within six months of the payment of such sum.

(2) The Controller may, on an application made by the tenant within six months of his having made payment of any such sum as is referred to in sub-sec­tion (1), by order, direct the landlord to deposit the said sum within thirty days of the order for payment to the tenant.

Landlord not to interfere with amenities enjoyed by the tenant. – (1) No landlord shall, without just or sufficient cause, cut off or with­hold any of the amenities such as electricity, gas or water enjoyed by the tenant.

(2) A tenant in occupation of a building or rented land may, if the land­lord has cut off or withheld any of amenities in contravention of the provisions of sub-section (i), make a complaint to the Controller for restoration thereof.

(3) If the Controller on enquiry finds that the tenant has been in enjoy­ment of the amenities and that they were cut off or withheld by the landlord with­out just or sufficient cause, he shall make an order directing the landlord to restore such amenities, or authorise the tenant to secure the same for himself and to incur such expenses thereon as the Controller may specify and any expenditure so incurred by the tenant shall be adjustable against the rent payable by the tenant in respect of that building or rented land as the case may be.

Failure by landlord to make necessary repairs. -(I) If a landlord fails to keep a building in a state of reasonable repair, or to make such repairs thereto, not being structural alteration as may, from time to time, be necessary, it shall he competent for the Controller to direct, on application by the tenant, and alter such inquiry as the Controller may think necessary that such repairs may he made by the tenant and the cost thereof may be deducted from the rent payable by him:

Provided that nothing in this section shall enable the tenant to spend on repairs any amount in a year exceeding the rent of the building for two months unless the Controller, alter making necessary inquiry, is satisfied that such repairs are essential to render the building fit for occupation:
Provided further that where, under the terms of the agreement of tenancy, a tenant is authorised to make repairs at the expense of the landlord, no applica­tion under this section shall be necessary:

Provided also that the amount to be deducted from the rent payable on account of repairs in a year shall not exceed the amount of two month’s rent.
Explanation. -For the purpose of this section, a building shall be deemed to be in a state of reasonable repair when –

(i) all floors, walls, pillars, arches and roofs are sound and watertight,

(ii) all doors and windows are intact, properly painted or oiled and pro­vided with proper hooks or bolls or other necessary fastenings;

(iii) all rooms, out-houses and appurtenant buildings are properly colour-washed or white-washed; and

(iv) all electric, water, gas and sanitary fittings, if any are properly main­tained and are safe, sound and without leakage.

Reimbursement of expenses incurred on repairs under order of authority. -(1) Where the Authority, in the exercise of its powers, under any law for the time being in force, directs a landlord to make certain specified repairs to his building not exceeding the rent of the building for two months and the land­lord fails to comply with the direction, the tenant may, on the direction of the Authority, make such repairs.
(2) Where a tenet makes any repairs in pursuance of a direction referred to in sub-section (1), he shall, within three months of the completion of repair, submit to the Authority an account of the costs incurred by him on such repairs and the Authority shall, alter due verification, certify such costs where­upon the tenant shall he entitled to deduct the amount of the certified costs from the rent payable by him.

17. Eviction of tenant. -(I) A tenant in possession of a building or rented land shall not be evicted therefrom except in accordance with provisions of this section.

(2) A landlord who seeks to evict his tenant shall apply to the Controller for a direction in that behalf. If the Controller, after giving the tenant a reasonable opportunity of showing cause against the application, is satisfied that-

(i) the tenant has not paid or tendered rent due by him in respect of the building or rented land, within fifteen days after the expiry of the time fixed in the agreement of tenancy with his landlord, or in the absence of any such agreement within sixty days from the period for which the rent is payable ; or

(ii) the tenant has without the written consent of the landlord-

(a) transferred his right under the lease or sublet the entire build­ing or rented land or any portion thereof; or

(b) used the building or rented land for purpose other than that for which it was leased or has infringed any conditions on which the building or rented land is held;

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