The Punjab and Haryana High Court stayed the operation of a Central Government notification that extended the Assam Tenancy Act, 2021, to the Union Territory of Chandigarh and simultaneously resulted in the repeal of the East Punjab Urban Rent Restriction Act, 1949. The Court directed that the earlier rent law would continue to remain in force pending further consideration of the matter.
The challenge to the notification was brought before the High Court through petitions filed by the Punjab and Haryana High Court Bar Association and the District Bar Association, Chandigarh. The petitioners questioned the legality of the notification issued by the Ministry of Home Affairs under Section 87 of the Punjab Reorganisation Act, 1966. According to the petitioners, while the provision empowers the Central Government to extend laws applicable in a state to Chandigarh, it does not authorize the repeal or substitution of an existing law already in force in the Union Territory.
The petitioners argued that the notification did not merely extend the Assam Tenancy Act to Chandigarh but effectively repealed the East Punjab Urban Rent Restriction Act, 1949, which had governed landlord-tenant relations in Chandigarh for several decades. It was contended that the power granted under Section 87 could not be used to fundamentally alter the legal framework by replacing an existing statute with an entirely different law through executive action.
During the proceedings, the petitioners relied on constitutional principles and judicial precedents relating to delegated legislation. They argued that the Central Government’s authority under Section 87 is confined to extending laws and does not include the power to repeal, amend, or substitute an existing enactment through a notification. According to the petitioners, such a substantial legislative change could only be brought about through proper legislative processes and not through executive action.
Another major issue raised before the Court concerned the adjudicatory mechanism under the Assam Tenancy Act. The petitioners contended that powers traditionally exercised by judicial forums in landlord-tenant disputes had effectively been transferred to executive authorities such as revenue officers. It was argued that entrusting executive officers with adjudicatory functions raised concerns regarding judicial independence and separation of powers, especially since such officers also perform administrative functions.
The High Court considered the submissions and observed at the prima facie stage that Section 87 of the Punjab Reorganisation Act did not appear to confer authority upon the Central Government to repeal an existing law through the process adopted in the notification. Taking note of the substantial legal questions raised, the Court stayed the operation of the notification and directed that the earlier rent control legislation would continue to govern tenancy matters in Chandigarh until further orders.
As a result of the interim order, the implementation of the Assam Tenancy Act in Chandigarh was effectively put on hold. The East Punjab Urban Rent Restriction Act, 1949, which had previously regulated landlord-tenant relations in the Union Territory, was restored for the time being and continued to remain operative pending adjudication of the challenge.
The dispute arose after the Central Government issued notifications extending several state enactments to Chandigarh as part of broader regulatory changes. Among those laws was the Assam Tenancy Act, 2021, which introduced a different framework for regulating residential and commercial tenancies. The legislation contains provisions dealing with tenancy agreements, security deposits, dispute resolution mechanisms, rights and obligations of landlords and tenants, and penalties relating to tenancy arrangements.
The petitioners argued that extending the Assam legislation to Chandigarh created significant legal and constitutional concerns because it displaced a long-standing rent control framework through executive notification rather than legislative enactment. According to them, the notification exceeded the scope of authority conferred under the Punjab Reorganisation Act and altered substantive legal rights without adequate constitutional sanction.
The High Court’s interim intervention reflected its view that the issues raised required detailed examination before the notification could be permitted to operate. By staying the notification, the Court ensured continuity of the existing legal framework governing tenancy disputes in Chandigarh while the challenge remains under judicial consideration.
The proceedings now focus on the scope of the Central Government’s powers under Section 87 of the Punjab Reorganisation Act, the legality of repealing an existing law through executive notification, and the constitutional implications of transferring adjudicatory powers from judicial forums to executive authorities. Until these issues are finally decided, the East Punjab Urban Rent Restriction Act will continue to regulate landlord-tenant relations in Chandigarh under the protection of the High Court’s interim order.
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