(1) In the event of death of a tenant, the right of tenancy shall devolve for a period of ten years from the date of his death to his successors in the following orders, namely:-
(a) Spouse;
(b) Son or daughter or where there are both son and daughter both of them;
(c) Parents; and 1Substituted by Punjab Act No. 23 of 2014, Section 3 Registration of tenancy agreement.
Inheritability of tenancy.
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(d) Daughter-in-law, being the widow of his predeceased son:
Provided that the successor has ordinarily been living in the premises with the deceased tenant as a member of his family upto the date of his death and was dependent on the deceased tenant:
Provided further that a right to tenancy shall not devolve upon a successor in case such successor or his spouse or any of his dependent son or daughter is owning or occupying a residential premises in the same urban area.
(2) If a person, being a successor specified in sub-section (1), was ordinarily living in the premises with the deceased tenant but was not dependent on him on the date of his death, or he or his spouse or any of his dependent son or daughter is owning or occupying a residential premises in the same urban area, such successor shall acquire a right to continue in possession as a tenant for a limited period of one year from the date of death of the tenant and, on the expiry of that period, or on his death, whichever is earlier, the right of such successor to continue in possession of the premises shall become extinguished.
Explanation.- For the removal of doubts, it is hereby declared that -
(a) where, by reason of sub-section (2), the right of any successor to continue in possession of the premises become extinguished, such extinguishment shall not affect the right of any other successor of the same category to continue in possession of the premises but if there is no other successor of the same category, the right to continue in possession of the premises, shall not, on such extinguishment, pass on to any other https://indiankanoon.org/doc/151307878/ https://indiankanoon.org/doc/74205033/ https://indiankanoon.org/doc/133400355/ 13 successor specified in any lower category or categories, as the case may be.
(b) the right of every successor, referred to in sub-section
(1) to continue in possession of the premises shall be personal to him and shall not, on the death of such successor, devolve on any of his heirs.
(3) Nothing in sub-section (1) or sub-section (2) shall apply to a non-residential premises and the vacant possession of such premises shall be delivered to the landlord within one year,-
(i) of the death of the tenant, in case the tenant is an individual;
(ii) of the dissolution of the firm, in case the tenant is a firm;
Explanation.- If all the partners of the firm as on the date of hiring the premises leave the firm, it shall be deemed that the firm stands dissolved.
(iii) of the winding up of the company, in case the tenant is a "company", as defined in the Companies Act,
1956.
(iv) of the dissolution of the corporate body other than a company in case the tenant is such a corporate body.
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CHAPTER II RENT 1[6. The Rent payable in relation to the premises shall be agreed rent between the landlord and the tenant:
Provided that the agreed rent shall be increased by five per cent of the last rent for two years and thethird year increase shall be based upon the increase in the Consumer Price index over the corresponding three years.
Example.- If the Consumer Price Index increases by eighteen per cent in three years, the rent for the fourth year shall be the rent for the first year multiplied by one point eighteen. This cycle shall continue.]
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