Control of Rent Part II — Controlled premises and fair rent

s 4

(1) Except for the premises mentioned in subsection (2) all premises shall be, subject to the operation of this Act and any such premises shall for the purposes of this Act be called "controlled premises' peraTon oollis Aet, nemises shall be free from the. (a) buildings completed after 31st January 1948; (b) premises which are the property of the Government of Malaysia Government of any State; OI of the [Pt. II, S. 4-5] (c) premises which are vested in or acquired byoron behalf of any Municipality for the purposes of the Municipal Ordinance of the Straits S.S. Cap.. Settlements in force in the States of Malacca 133. and Penang and as extended to apply to the other States by virtue of the Municipal Ordinance (Extended Application) Ordinance 3 of 1948. 1948; (d) furnished premises let at a rental which includes board; and (e) premises which cease to be controlled premises by virtue of section 24.

s 5

(1) The rent of every controlled premises shall for Fair rent. the purpose of this Act be known as "the fair rent" and shall be determined in a manner provided in section 7- (a) by an agreement in writing between the landlord and the tenant of such premises; or (b) in the absence of such agreement, by a decision of a Rent Officer for the area in which such premises is situated provided that such decision is accepted by both parties; or (c) if such decision is not accepted by either party, by an order of the Tribunal. (2) The amount of the fair rent of any controlled premises shall be, in the case where it is determined by an agreement between the landlord and the tenant, such sum as may be agreed upon between them; and in the case where it is determined by the decision of a Rent Officer such amount as may be fixed by him provided that the same is accepted by both parties; and in the case where it is determined by the order of the Tribunal, such sum as the Tribunal may consider reasonable. Provided that the amount of the fair rent per mensem of any controlled premises shall not in any case exceed- (a) one-twelfth of the annual value of the controlled premises; or [Pt. II, S. 5] (b) the amount of the rent per mensem of the controlled premises immediately before the commencement of this Act together with an increase of 100 per centum thereof, whichever is the lesser. In this subsection "annual value" has the meaning assigned to it in the written laws in force with respect to local authorities. (3) In the case of any controlled premises or part thereof which has been sublet by the fenant, subject to section 20 (4) and (5), the fair rent of any part to subletor (in the case of such subtenancy having become jointtenancy by virtue of notification under section 20 (2)) the part held by a joint-tenant shall be such amount as bears the same proportion to the fair rent of the whole premises as the area of such part bears to the area of the whole premises; and in determining the fair rent of such part, the parties, the Rent Officer or the Tribunal, as the case may be, shall have regard to the accessibility and amenities of such part to the extent to which the use of any accommodation is shared by the tenant with any other person, including the landlord, and to any other circumstances which may be considered material towards determining the fair rent of such part. In this subsection the expression "parties" shall in the case of subtenancy mean the tenant and his subtenants and in the case of joint-tenancy the landlord and his joint tenants. (4) Where any controlled premises are let furnished, unless otherwise determined by the Tribunal, the fair rent of such controlled premises and furniture shall be a sum not exceeding the combined amount of the fair rent of such controlled premises unfurnished and- (a) fifty per centum of such fair rent; or (b) a monthly rental to be assessed at one-sixtieth of the true value of the furniture at the date of the commencement of the tenancy, whichever shall be the less. U [Pt. II, S. 6-71

s 6

For the purpose of determining the fair rent of any Principle to controlled premises under this Act, in addition to the determine fair rent. factors referred to in section 5 (3), the following factors shall be taken into consideration; namely- (a) the location of the controlled premises in question; (b) the age and character of the controlled premises; (c) the state of repair of the controlled premises; d) the type tof thre conts oled spremioers, that t. premises; and (e) any improvements made to the controlled premises by the tenant where such improvement was made with the written consent of the landlord: Provided that nothing in this section shall entitle a tenant to ask to be taken into consideration any goodwill attached to the controlled premises by reason of any business carried on thereat by the tenant or his predecessors in title of such business.

s 7

(1) The landlord of any controlled premises may Procedure negotiate with his tenant with a view to determining the to be fair rent thereof. Solored in (2) Where such landlord and tenant at the Che fais oent so afregoupon bymeinthall be remeed into writing and shall be binding upon both of them. (3) Where such landlord and tenant cannot come into an agreement within one month from the date when such negotiation began, either party may request a Rent Officer of the area where the controlled premises in question is situated to determine the fair ient thereof, and the said Rent Officer shall within one month of the date of such request determine the fair rent so requested. [Pt. II, S. 7-8] (4) The function of a Rent Officer shall be advisory only and the fair rent determined by him shall not be inding upon either party, unless accepted by botl parties within one month from the date when it was determined; and every such acceptance shall be reduced into writing. Rent not to be increased in excess of fair rent. determine the fair rent within one month of the date on which the request to determine the fair rent was made to him, he shall forthwith issue to both parties a certificate (in this Act referred to as "a certificate of dispute") stating that there exists in respect of the controlled premises in question a dispute between the landlord and the tenant as to the amount of fair rent thereof. (6) Upon receipt of a certificate of dispute, either party may apply for the determination thereof to the Tribunal for the area where the controlled premises in question is situated; and the fair rent so determined by the Tribunal shall, unless reversed on an appeal made under section 15, be binding upon both parties and such fair rent shall take effect on the first day of the month following the date when application to settle the dispute was made to the Tribunal.

s 8

(1) Save as otherwise provided in this Act, it shall be unlawful for any landlord to increase or attempt to increase or to receive or recover in respect of any tenancy of any controlled premises a rent in excess of the fair ient of such controlled premises as determind in accordance with this Act, or in excess of any increased rental permitted by this Act. (2) Where, as a result of any transfer to a tenant, other than a transfer effected by any written law, of any burden or liability previously borne by the landlorc under the terms of the tenancy, the terms on which controlled premises are held are on the whole less [Pt. II, S. 8-9] •favourable to the tenant than the terms held by him before such transfer, the rent shall be deemed to be increased whether or not the sum periodically payable by way of rent is increased. (3) A tenant who has paid his landiord a sum in excess of the fair rent or the rent which may lawfully be received under this Act may recover such sum from the landlord (4) Any person who contravenes this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding one thousand ringgit.

s 9

(1) In either of the following cases, namely- Cases where increase of (a) where, after the fair rent of any controlled rent is premises has been determined in accordance permitted. with this Act, the rate payable by the landlord in respect of such controlled premises has been increased; or (b) where since the date by reference to which the fair rent of any controlled premises is determined the landlord has, in connection with the restoration, the improvement or the making of structural alteration of the premises, incurred expenditure (not including expenditure on decoration or ordinary repairs), subject to the following subsections, the fair rent of any controlled premises may be increased in the case mentioned in paragraph (a) to the extent which shall not exceed the amount of the increase of rates payable in respect of such controlled premises, and in the case mentioned in paragraph (b) to the extent which shall not exceed such sum as will allow the landlord a reasonable return in respect of such expenditure. (2) Nothing in this section shall be deemed to relieve , landlord from the necessity of determining the tenancy according to law prior to increasing the rent. Charging and giving f premium rohibited [Pt. II, S. 9-10] (3) Nothing in this section shall apply to any subtenancy arising from the subletting of any part of any premises, unless the landlord by virtue of notification under section 20 (2) treats such subtenancy as joint-tenancy.

s 10

(1) Except as provided in subsection (2), no person shall, as a condition of the grant, renewal, continuance, sale or assignment of a tenancy of any controlled premises or as a condition for subleasing or subletting any controlled premises, require or receive the payment of any premium or other like sum or the giving of any valuable consideration in addition to the rent. (2) Nothing in subsection (1) shall prevent the landlord— (a) from receiving by way of deposit such sum as may be agreed between the landlord and the tenant where the fair rent has been determined by them; (b) from receiving in advance rent not exceeding a total of three months' rent, where the fair rent of any controlled premises has, upon application by either of them, been determined by the Tribunal; (c) with the permission of the Tribunal, from recovering a reasonable sum in respect of dilapidations on the renewal of a leasé; and (d) from receiving by way of deposit a reasonable sum in respect of facilities provided on the controlled premises by the landlord at the request of the tenant. (3) The deposit referred to in subsection (2) shall be returned to and recoverable by the tenant at the end of the tenancy or where the tenant has made default in payment of rent such deposit may be used to pay the rent due in respect of the controlled premises in question. U. [Pt. II-III, S. 10-12] (4) Where under an agreement made since the coming into force of this Act or the written laws this section, the amount of such premium, sum or consideration, or so much thereof as could not lawfully be required, shall be recoverable by the person by whom it has been paid. (5) Any person who contravenes this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding three times the amount of the payment or consideration required or received, or to imprisonment for a term which may extend to six months or both.

s 11

A landlord shall, on being requested in writing by Statement his tenant or any subtenant or any joint-tenant, supply wvin y has ben deteri vitr npeder ofe tri ren pae which has been determined by an order of the Tribunal, and if without reasonable excuse he fails within fourteen days to do so, or supplies a statement which is, to his knowledge, false in any material particular, he shall be guilty of an offence and shall be liable on conviction to a fine not exceeding one thousand ringgit. PARI III RENT TRIBUNAL

s 12

(1) Except for the purpose of section 19, there Rent 10 ac hыn, conitang o ac mai ni ahetog mnal. members appointed in the manner provided under the (2) The Chairman of the Tribunal shall be appointed by the Ruler or the Yang di-Pertua Negeri, as the case may be, from any of the following persons, namely— (a) a member of the Judicial and Legal Service in Malaysia; [Pt. III, S.12] (b) aas rsen bin nteana drocate fod atl cetst wive years; (c) a District Officer for the area or areas concerned; or (3) The two members of the Tribunal shall be drawn from a panel appointed for a particular area or areas in a State, and such panel shall consist of not more than ten persons, all of whom shall be citizens of Malaysia and shall be appointed by the Ruler or the Yang di- Pertua Negeri, as the case may be. (4) Whenever a need arises for the Tribunal to be convened, it shall be the duty of the Chairman to invite two members of the panel to sit therein. (5) Unless unanimous, the decision of the Tribunal on any matter beforeit shall be bya majority consistingof the concurring opinions of the Chairman and either of the two members; but where the Chairman disagrees with both members notwithstanding that both members may agree between themselves, no decision shall be deemed to have been arrived at, and the matter shall forthwith be referred for a decision to the Appeal Board constituted under section 15 for the area in which the controlled premises in question are situated; and the decision so made shall be final and shall not be questioned in any court. (6) The Tribunal shall have powers to summon and examine witnesses and compel the production and delivery of any documents which the Tribunal considers to be material for the proceedings before it; and all summonses and notices issued under the hand of the Chairman shall be deemed to be issued by the Tribunal. (7) Any person interested in a proceeding before the Tribunal may be represented before it by an advocate and solicitor of the High Court. [Pt. III, S. 12-13] (8) The proceedings of the Tribunal shall be held in camera but the Tribunal may in its discretion open to the public the whole or any part of the proceedings before it; and minutes of the same, including a note of any oral evidence given before the Tribunal, shall be kept by the Chairman. (9) The Chairman and members of the Tribunal shali be public servants within the meaning of the Penal Cn.Sss. (10) The PublicAuthorities Protection Act 1948, Act 198. shall apply to the Tribunal and to the Chairman and each member thereof. (a) to hear and determine any application for the purpose of determining the fair rent of any controlled premises where the fair rent determined by a Rent Officer under this Act is not accepted by either the landlord or the tenant; (b) to hear and determine any application made under section 21 for the purpose of apportioning and determining the fair rent of any controlled premises or any part thereof as between the tenant and all his subtenants, where such premises or parts thereof have been sublet, or as between the landlord and each of his joint-tenants, where there is a joint-tenancy subsisting between the landlord and the occupants of the controlled premises or parts thereof, whether such joint-tenancy arises directly as a result of direct letting to such occupants or indirectly as a result of landiord under section 20n iasatied tena te [Pt. III, S. 13] (* P жeh he toяo boy oлho ia pehoя, in excess of its fair rent in accordance with section 9 (1); (d) from time to time, to review, vary or set aside any order made by it, as provided by sectios 4 or to refuse to make such order (e) to make an order for the recovery of possession of any controlled premises or any Ccorhanee tioth se puon 18, of development in (f) to make an order granting exemption from the requirements of section 20 (1) (b) and in so doing to impose such conditions as it may think fit. (2) Where the controlled premises concerned in any application or proceeding before the Tribunal are sublet by the tenant either wholly or in part, the Tribunal shall in addition to determining the fair rent in respect of the tenancy of such premises as a whole and subject to section 21 determine the fair rent of any part thereof which is separately sublet. (3) Every application under this section shall, if made by a landlord, be served on his tenant as noe ser ehis respondent, and if made by a tenant, be served on his landlord as respondent, and if made by some other person interested, be served on both the landlord and tenant as respondents; and if such application is made by either the landlord or tenant asking the Tribunal to exercise its powers under subsection (1) (a), (b) and (c), such application unless accompanied with a certificate of dispute signed by a Rent Officer. (4) Any person claiming to be interested in any proceedings before the Tribunal may apply to be made a party to such proceedings. ( [Pt. III, S. 13-14] (5) Before making any order, the Tribunal shall give all interested parties an opportunity of being heard and of producing such evidence, oral or documentary, as seems relevant to the Tribunal. (6) An order of the Tribunal may be proved by the production of a copy thereof signed by the Chairman. (7) Until reviewed, varied or set aside under section 14 an order made by the Tribunal determining the fair rent of any controlled premises shall be binding on all present and subsequent landlords, tenants and charges. (8) All orders of the Tribunal shall be recorded in a book to be called a Register Orders and such Register shall be maintained by the Tribunal and shall be open to inspection on payment of a prescribed fee.

s 14

An order of the Tribunal may be reviewed, varied Review of or set aside by the Tribunal in the following cases, Tribrnof the namely— (a) where the circumstances affecting the question restif oa the pt bang ofatis Alyt orother as a, altered since the order was made; or (b) where the order was made in consequence of any fraud, misrepresentation or mistake; or (c) where fresh evidence of a material nature, which could not by the exercise of reasonable diligence have been produced when the order was made, is available; or (d) where the order was made in the absence of any necessary or proper party whose absence was not due to any default or neglect on his part; or (e) where, in the opinion of the Tribunal, substantial injusticé has been occasioned by the order.

Appeal. [Pt. III-IV, S. 15-16]

s 15

(1) Any person who is aggrieved by the decision of the Tribunal may within twenty-one days of the making of such decision appeal against it to an Appeal Board constituted in a manner provided under subsections (2) and (3) for the area or areas in which the controlled premises in question are situated; and any decision made thereon by the Appeal Board shall be final and shall not be questioned in any court. (2) Every Appeal Board constituted under this section shall consist of not more than three persons one of whom shall be a Chairman. (3) The Chairman who shall be a person possessing legal qualifications and experience, and members of the Appeal Board who shall be persons possessing sufficient standing and integrity; shall all be appointed by the Ruler or the Government of a State. (4) Section 12 (6), (7), (8), (9) and (10) shall apply to an Appeal Board constituted under this section as they apply to the Tribunal, and in their application to the Appeal Board, a reference to the Tribunal shall be construed as a reference to the Appeal Board and a reference to the Chairman shall be construed as a reference to the Chairman of the Appeal Board. Restrictior n right t possession.