ET OnlineTenants can get compensation for premature termination of tenancy or demand rehousing after demolition of landlord’s building (AI generated representative image)
The Allahabad High Court on February 20, 2026 ordered tenants to vacate a building which was in a bad condition and needed to be demolished. The high court said that tenancy protection laws can’t compromise public safety.
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The building in Varanasi, was deemed urgently in need of demolition because it was in a highly dilapidated state and posed serious risk to its residents as well as passers-by. Consequently, the Varanasi Nagar Nigam issued a notice on August 3, 2021 under Section 331(1)(2) of the Uttar Pradesh Municipalities Act, 1959, directing demolition of the unsafe structure within seven days.
For example, on August 29, 2025, a portion of the building had collapsed, disrupting traffic and posing a serious threat to public safety.
With public safety as a priority, on February 20, 2026, the tenants lost the case in high court and were ordered to vacate the building.
Nevertheless, the high court clarified that the tenants are free to approach the competent authority for seeking appropriate relief since they have to leave the property for the demolition to take place.
Rahul Sundaram, Partner, IndiaLaw LLP, said to ET Wealth Online that the tenants lost the case in high court because once the municipality declares a building dangerous under Section 331 of the 1959 Act, public safety overrides tenancy rights. The court held that tenants cannot use the Tenancy Act 2021 to block demolition merely because they have pending eviction suits.
Also read: Danger to human life overrides tenancy claims, says Allahabad High Court, orders tenant eviction and demolition of dilapidated building
Tenants can ask for compensation for premature termination of tenancy or ask for rehousing after demolition
According to Sundaram, tenants have the right to claim compensation for premature termination of tenancy, or seek rehousing under Section 334(5) of the 1959 Act if the demolition notice is withdrawn.
Sundaram says: “However, these remedies must be pursued after demolition, not used as grounds to delay the demolition.”
Neeha Nagpal, Founding Partner, NM Law Chambers, said to ET Wealth Online that if a building is structurally dangerous, the court will generally allow demolition to prevent harm.
Nagpal pointed out that tenants are not left without remedies. They can still pursue legal claims separately, such as:
- Claiming compensation: If demolition occurs and tenants lose possession, they may claim compensation for relocation, loss of tenancy rights, or damage to property depending on the facts and local rent laws.
- Claiming alternative accommodation (in some circumstances): In certain redevelopment cases, tenants may seek temporary or permanent alternative accommodation, especially if reconstruction is planned.
- Civil suits for damages: Tenants may file a civil suit claiming the landlord deliberately neglected maintenance leading to unsafe conditions.
- Recovery of repair expenses: If tenants previously carried out repairs that were the landlord’s responsibility, they may seek reimbursement. Tenants must pursue their rights through separate legal proceedings.
Can landlords seek eviction of tenants if the building has been declared unsafe by the municipality?
According to Sundaram, only the Municipal Commissioner’s declaration that the building is unsafe under Section 331 matters mateters and not the landlord’s personal opinion. The process is: Commissioner issues notice under Section 331(1) requiring repair or demolition; if danger is imminent, direct action under Section 331(3); vacation order under Section 334(1)(c); police-assisted removal under Section 334(4) if needed; and finally, comes demolition.
Nagpal says that a landlord cannot arbitrarily declare a building unsafe and evict tenants. Normally one of the following processes happens:
1. Municipal declaration: The usual process begins with the local municipal authority (for example, the municipal corporation or development authority) inspecting the building. If it is found structurally dangerous, authorities may:
- 1st stage: Issue a notice declaring the building unsafe
- 2nd stage: Direct vacation of the premises
- 3rd stage : Order demolition or structural repairs. At this stage, tenants may be required to vacate.
2. Eviction proceedings under rent laws: If tenants refuse to vacate, the landlord may file an eviction suit before the rent control court or civil court, arguing that:
- The building is dilapidated
- It requires demolition or reconstruction
The landlord must usually prove:
- Structural instability
- Necessity of demolition or major reconstruction
- Bona fide intention to repair or rebuild
3. Court review: The court may consider:
- Structural reports
- Municipal notices
- Expert engineering reports. If satisfied, the court may order eviction of tenants.
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