Chandigarh Rent Law Chaos: What High Court Stay Order Means for You
Chandigarh rent law: The Punjab and Haryana High Court has put on hold a central government order that replaced Chandigarh’s 60-year-old rent law. Tenants, landlords and shopkeepers are back under the familiar old law — for now.
North Desk Correspondent
Chandigarh, May 31
Chandigarh rent law: If you rent a shop, flat or house in Chandigarh — or if you are a landlord — a quiet but important legal battle is playing out at the Punjab and Haryana High Court that directly affects your rights. On Friday, the court hit the pause button on a Central Government order that had replaced Chandigarh’s decades-old rent law with one borrowed from Assam. Senior Advocate Chetan Mittal, who led the challenge before a bench of Justices Harsimran Singh Sethi and Deepak Manchanda, argued that the notification was not just legally flawed but had already left thousands of people without any remedy for three weeks. The court agreed — and stayed the notification the same day.
Chandigarh rent law: Q&A
Q: What was the old rent law in Chandigarh? Chandigarh has been governed by the East Punjab Urban Rent Restriction Act, 1949 — a law that protected both tenants and landlords in the city for over 75 years. Under this law, rent disputes and eviction cases were heard by a Rent Controller — a judicial officer, essentially a judge.
Q: What did the Central Government do on May 6? The Central Government issued a notification extending the Assam Tenancy Act, 2021 — a law originally made for Assam — to Chandigarh, with some modifications. By doing this, it effectively repealed the 1949 Act. From May 6, the old law was gone and a new one was in its place.
Q: So what is the problem with the new law? Three big problems, all of which Chetan Mittal placed before the court in detail.
First, did the Centre even have the legal authority to do this? The power used — Section 87 of the Punjab Reorganisation Act, 1966 — allows the Centre to extend laws to Chandigarh, but the Supreme Court has previously held that this power cannot be used to repeal or replace an existing law. That is exactly what happened here.
Second, under the new law, rent disputes would no longer be heard by a judge. They would go to an executive officer — a government official. The court flagged this as a serious concern, particularly in light of a recent Supreme Court judgment that has frowned upon stripping judicial powers from courts and handing them to bureaucrats.
Third, and most immediately — the new law has no infrastructure at all. No rent authority has been notified. No rules have been framed. No staff is in place. No one even knows where to go to file a complaint.
Q: Who went to court and why? The Punjab and Haryana High Court Bar Association filed the petition challenging the Central Government’s notification. Rohit Sud, President of the Bar Association, was present in court and addressed the bench directly alongside the legal team. That the Bar Association itself moved court — and that its President personally appeared — reflects how seriously the legal fraternity viewed this as an overreach.
Q: What happened in the three weeks between May 6 and May 29? A legal vacuum. The old law was gone. The new law existed on paper but could not be used. Around 30 to 50 rent cases were being filed every single day under the old law. After May 6, there was nowhere to file them. Landlords could not move for eviction. Tenants had no forum to challenge illegal rent hikes or harassment. The lawyers told the court plainly: for 21 days, anyone with a rent dispute in Chandigarh had been left completely without a remedy. The court found this impossible to ignore.
Q: What did the High Court decide? The bench of Justices Harsimran Singh Sethi and Deepak Manchanda put the Central Government’s May 6 notification in abeyance — paused, suspended, kept on hold. As a result, the 1949 Act is back in operation. Anyone with a rent dispute in Chandigarh can once again approach the Rent Controller under the old law.
Q: Chandigarh rent law: What does “stay” mean in simple terms? Think of it this way. The government changed the rules of the game on May 6. The High Court has said — wait, we need to examine whether you had the right to change those rules. Until we decide, the old rules apply. The new rules are on hold.
Q: I had a case pending before May 6 — what happens to it? Your case continues as it was, under the 1949 Act, before the same Rent Controller. The stay protects pending cases from being thrown into uncertainty.
Q: I want to file a fresh case — can I do so now? Yes. With the stay in place and the 1949 Act restored, you can file fresh cases before the Rent Controller as before.
Q: Chandigarh rent law: Until when does this stay last? The matter comes up next on July 14, 2026. The stay operates until then. After July 14, the court will hear both sides fully and either extend the stay, vacate it, or decide the matter finally.
Q: Could the stay be lifted before July 14? The Central Government — represented in court by Additional Solicitor General Satya Pal Jain — and the Chandigarh Administration can approach the court to seek vacation of the stay. But the bench has already heard both sides and found prima facie merit in the challenge — meaning at first look, the petition appears valid.
Q: Chandigarh rent law challenge: What is the best and worst case outcome? Best case for those who want the old system back: The court strikes down the May 6 notification entirely and the 1949 Act is permanently restored.
Worst case: The court upholds the notification but directs the government to build proper infrastructure and frame rules before implementing the new law — meaning a transition eventually happens, but in an orderly way.
Middle ground: The court may modify certain provisions — for instance, restoring judicial officers as Rent Controllers even within the new framework, addressing the core objection about executive adjudication.
The July 14 hearing will be the next flashpoint. The Central Government and Chandigarh Administration have been asked to file their replies before then. North Desk will continue to track this case closely.
READ: Chandigarh New Tenancy Law 2026 Explained: Eviction Rules, Tenant Rights, What Changes
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