Why the Standard Rental Agreement Clause on Eviction Needs a Legal Update in Mumbai–Thane

Why the Standard Rental Agreement Clause on Eviction Needs a Legal Update in Mumbai–Thane

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By Arosh John | Founder – John Real Estate (MahaRERA Reg. No. A51700001835) Editor-in-Chief – Thane Real Estate News (TREN)
Mumbai | October 10, 2025


Introduction

The online Leave & Licence registration system, a groundbreaking initiative developed by the Department of Registration & Stamps (IGR Maharashtra), has revolutionised the process of property rentals across Mumbai and Thane, setting a new standard for efficiency and transparency.

Long queues, physical stamp papers, and manual signatures have been replaced with a seamless digital process — Aadhaar-based e-signatures, online stamp-duty payment, and instant document generation.
It’s one of Maharashtra’s most successful examples of e-governance, bringing speed, transparency, and compliance to the real-estate ecosystem.

Yet amid this remarkable progress lies one overlooked detail — a single clause in the standard online agreement template that may unintentionally mislead landlords about their rights after a licence expires.


The Clause That Appears in the Online Standard Draft

When a user registers a Leave & Licence agreement through the official IGR Maharashtra e-registration portal, the system generates a standard agreement draft after rent, duration, and address details are entered.

Within this draft appears the following sentence:

“…the Licensor shall be entitled to remove the Licensee and his belongings from the Licensed premises, without recourse to the Court of Law.”

This line is part of the standard format used across Mumbai, Thane, and other districts. While users can technically edit drafts, most adopt the system-generated text unchanged, assuming it represents current law.

However, this clause — a carry-over from earlier paper formats — conflicts with the due-process requirements under the Maharashtra Rent Control Act, 1999. Acting on it, for instance, by entering the premises after expiry, can inadvertently expose landlords to legal consequences.


Risks Landlords Face by Acting on This Clause

Landlords relying on this wording and taking direct action risk:

  • Criminal liability under Section 448 IPC (house-trespass) if a tenant files a police complaint.
  • Police intervention or FIRs alleging illegal eviction.
  • Civil injunctions restraining landlords from entering their own property.
  • Adverse remarks before the Competent Authority or courts for bypassing due process.

Most owners act in good faith, believing this line is legally valid — which is precisely why official clarification is needed.


What Section 24 of the Maharashtra Rent Control Act, 1999 Actually Says

Section 24 governs the eviction of licensees — occupants holding premises under a Leave & Licence agreement.

In simple terms:

  • When the licence period ends, the Licensee must vacate the premises.
  • If the Licensee refuses to vacate after expiry or notice, the Licensor must apply to the Competent Authority.
  • The Competent Authority conducts a special summary procedure under Chapter VIII (Sections 42–45) — a fast, simplified hearing to determine expiry.
  • If satisfied, it issues an eviction order, legally authorising the landlord to take possession.
  • Until that order is issued, no self-help eviction is allowed, even if ownership is undisputed.

Section 24 thus provides a clear and lawful pathway for possession recovery, balancing the rights of owners with the legal protection of tenants.


Judicial Clarity

Maharashtra courts have repeatedly upheld this principle:

  • Krishna Ram Mahale v. Shobha Venkat Rao (1989 SC) – originating from Pune, the Supreme Court ruled that even an expired licensee cannot be dispossessed without due process of law. This judgment inspired Section 24.
  • Ramesh Shah v. Harsukh Jadhav (2008 Bom HC) – the Bombay High Court held that eviction must be carried out through the Competent Authority; self-help possession is illegal.
  • Smt. Geeta K. Shah v. Rajesh Y. Bhansali (2009 Bom HC) – reaffirmed that landlords cannot forcibly retake possession; only lawful eviction orders apply.

Together, these rulings make it unequivocal: possession can only be recovered through due process, never by force.


A Constructive Suggestion for the Registration Authority

The Department of Registration & Stamps (IGR Maharashtra) and its Mumbai–Thane Sub-Registrar Offices have built one of India’s most trusted digital property-registration systems.
A minor yet crucial language correction in the standard agreement draft can ensure its legal soundness, preventing potential misinterpretation and legal issues for thousands of citizens who rely on it.

Suggested Revised Clause:

“Upon expiry or termination, the Licensee shall hand over vacant possession. If possession is not handed over, the Licensor may seek eviction through the Competent Authority or Court under Section 24 of the Maharashtra Rent Control Act, 1999. It may claim compensation as determined by law.”

This updated wording clarifies rights, aligns with current law, and prevents misinterpretation by thousands of citizens who rely on the standard template.

I respectfully urge IGR Maharashtra to review the default clause library used in the L&L 2.0 workflow and replace the legacy wording with text aligned to Sections 24 and 42–45 of the MRC Act.
This crucial step will ensure consistency between digital automation and current legal practice — completing Maharashtra’s journey toward truly seamless and lawful e-registration.


Responsible Practices for Owners and Agents

Do:

  • Serve a written notice before the agreement expires.
  • File before the Competent Authority under Section 24 if the Licensee refuses to vacate.
  • Maintain all documentation and communication records.

Don’t:

  • Attempt to enter or lock the premises yourself.
  • Depend on the “without recourse to court” wording for eviction rights.

Due process protects both property and peace of mind. It is the cornerstone of our legal system and must be respected in all property transactions.


A Success Story Ready for Its Next Upgrade

The e-registration framework in Mumbai–Thane is already among India’s most successful governance initiatives — efficient, transparent, and citizen-centric.
Identifying this legacy clause isn’t criticism; it’s a professional insight from the real-estate community, aimed at refining an already exemplary system.

By modernising this one line, IGR Maharashtra can ensure every online rental agreement reflects the exact spirit and letter of current law — a small change that reinforces massive public trust.


Editor’s Note

While Maharashtra’s online registration platform has simplified property leasing, some legacy text remains embedded in default templates. This observation aims to encourage a policy-level review, ensuring that every e-registered document accurately reflects current legal requirements. Constructive collaboration between practitioners and public institutions can only strengthen citizen confidence in digital governance.


About the Author

Arosh John is a seasoned real-estate consultant and editor-in-chief of Thane Real Estate News, with over a decade of experience in transactions within the Mumbai Metropolitan Region. Founder of John Real Estate (MahaRERA Reg. No. A51700001835), he specialises in residential sales, villa advisory, and documentation compliance. Recognised as a Thane Real Estate Expert, Arosh advocates for transparency, policy literacy, and digital adoption in Maharashtra’s real-estate sector.


Disclaimer

This article is published for public awareness and informational purposes only. It does not constitute legal opinion, advice, or interpretation of law. Thane Real Estate News and the author have exercised due care to ensure the factual accuracy of this content; however, readers are encouraged to consult qualified legal professionals for individual matters. References to laws, judgments, and authorities are provided solely for transparency and educational purposes.