Are you obligated to pay rent during lockdown?

Due to the outbreak of the COVID-19 pandemic and the consequential lockdown, a lot of confusion is going on among the people regarding various issues such as obligations under business contracts, payment of school fees, and the validity of government directives for payment of wages, etc. Similarly, one such confusion has taken over the rental property market regarding the obligation of a tenant to pay rent during the lockdown. Since the government has asked all the employers not to deduct wages of their employees and has also reduced or eliminated expenses in various other fronts, the perspective of a landlord is that's why a tenant will not be able to pay the rent during the lockdown and the same is required to be considered in light of the prevalent laws of the country.
 

Is there a legal obligation upon the tenant to pay the rent?

With the entire country in a state of lockdown and relocation becoming an impossibility during the COVID-19 outbreak, tenants, co-living, and student housing firms are all in negotiation mode with landlords, trying to arrive at a consensus on extending existing rental agreements until the time the pandemic ends. Recently, the central government decided to allow employees, who were due to vacate their official premises, to retain their accommodation for another 75 days until May 31. The Noida Administration on March 28 passed an order asking landlords to collect rent from their worker tenants only after a month. Delhi Chief Minister Arvind Kejriwal on March 29 also asked landlords in Delhi not to force their tenants to pay rent for two to three months. He even went to the extent of stating that his government would pay rent if tenants were unable to do so. In light of these scenarios, the Ministry of Home Affairs has also released an order dated 29 March 2020 that says:

• Wherever the workers, including the migrants, are living in rented accommodation, the landlords of those properties shall not demand payment of rent for a period of one month.

• If any landlord is forcing laborers and students to vacate their premises, they will be liable for action under the Disaster Management Act, 2005.

However, the obligation of a tenant to pay the rent during lockdown would depend upon the directives issued by the Union and the respective state governments and in absence of the same, the governing laws.
 

What happens if you are unable to pay rent during a lockdown?

Since the landlord-tenant relationship is a contractual one, it would be liable to be governed as per the rental agreement executed between the two parties. Therefore, in case if a tenant is not able to provide rent to the landlord due to any losses suffered to his/her business as a result of the coronavirus outbreak, he/she can take shelter under the force majeure clause in the agreement. Force majeure events include an Act of God or natural disasters, war or war-like situations, labor unrest or strikes, epidemics, etc. The intention of a force majeure clause is to save the performing party from the consequences of something over which it has no control. It is an exception to what would otherwise amount to a breach of contract. Whether a particular contractual obligation can be avoided would however depend upon the factual analysis of each situation. The courts would examine, whether in a given case, the impact of the COVID-19 epidemic prevented the party from performing its contractual obligation. However, it is also important to determine whether COVID-19 will be considered as a & lsquo Force Majeure' event. In India, the Department of Expenditure, Procurement Policy Division, and Ministry of Finance issued an Office Memorandum on February 19, 2020, in relation to the government's & lsquo Manual for Procurement of Goods, 2017', which serves as a guideline for procurement by the government. In the Memorandum, the ministry has stated that the COVID-19 outbreak could be covered by a force majeure clause on the basis that it is a natural calamity. Therefore, the tenants can take defense under force majeure for not performing their contractual obligations of paying rent during the lockdown. Moreover, in case the contract does not include a force majeure clause, the parties who are unable to carry out their contractual obligations can ask for relief under the doctrine of frustration under Section 56 of the Indian Contract Act, 1872. The doctrine of frustration refers to a situation where the performance of a contract is possible when the contract is made but becomes impossible or unlawful upon happening of an event that could not have been prevented.
 

What to do if you are asked to vacate your rented house during a lockdown?

If you are asked to vacate the house during the lockdown, the aggrieved person can hand over a written complaint to the nearest police station. The complaint must contain details such as the name of the complainant, address, details of the landlord/homeowner, a summary of the complaint, and help needed. If the aggrieved person is posting the complaint via social media, the details of the same should be mentioned in the written complaint given to the police as well. However, it is recommended to consult a lawyer who deals in landlord-tenant-related issues before taking any steps.
 

How can a lawyer help you?

In case you have been asked to vacate your rented place due to non-payment of rent or if you are subjected to harassment by your landlord due to your inability to pay rent during the lockdown, it is very important for you to understand your rights and the steps you can take to redeem your lost status. This is why it is important to consult a lawyer who deals with landlord-tenancy-related issues who can guide you with the relevant steps and can help you with the procedures involved. Owing to his years of experience in the field, he will be able to analyze the situation better and can assist you in coming up with an effective strategy to resolve your legal issue. You can also use LawRato's Free Legal Advice service to get free advice on your legal issue from expert lawyers.

Advocate Chikirsha Mohanty

4.0 | 2+ user ratings Greater Kailash - 1, Delhi
5 years

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