Evicting Commercial Tenants & Rent Recovery in Bangladesh: Premises Rent Control Act Guide for NRB Landlords (2026)

Evicting a commercial tenant in Bangladesh requires harmonizing two key statutes:

1. The Transfer of Property Act, 1882 (Act No. IV of 1882): Section 105 to 111 governs the creation, duration, and statutory determination (termination) of leases. Section 106 establishes the mandatory rules for serving a formal Notice to Quit, while Section 111 outlines the circumstances terminating tenancy (efflux of time, express forfeiture, breach of covenants).
2. The Premises Rent Control Act, 1991 (Act No. III of 1991): A specialized social welfare legislation designed to protect tenants from arbitrary eviction and extortionate rent hikes. Under Section 18 of the Act, no order or decree for the recovery of possession of any premises shall be made as long as the tenant pays rent to the full extent allowable by this Act and performs the conditions of the tenancy.

To successfully evict a commercial tenant, an expatriate landlord must prove that the tenant has committed an act that strips away the statutory protection of Section 18, transforming their occupation into unlawful possession.

While the Premises Rent Control Act 1991 applies to both residential and non-residential premises, commercial tenancies exhibit distinct contractual and legal features:

• High-Value Security Deposits (অগ্রিম জামানত): Commercial leases frequently involve substantial advance deposits (often millions of Taka). Under Section 10 of the 1991 Act, landlords are technically restricted from demanding more than one month's rent in advance, unless contractually structured as an adjustable security deposit for fixtures and fittings.
• Subletting Prohibitions: Commercial tenants frequently attempt to sub-lease booth spaces, shop fronts, or warehouse sections to third parties. Under Section 18(1)(a), unauthorized subletting provides immediate, absolute grounds for summary eviction.
• Fixed-Term Determination: If a commercial lease was executed for a fixed term (e.g., 5 years) via a registered written instrument, upon the expiration of the term, the lease terminates automatically by efflux of time under Section 111(a) of the TP Act, provided the landlord does not accept post-expiry rent.

A civil court or Rent Controller will order commercial tenant eviction exclusively upon established statutory grounds under Section 18(1) and 18(5) of the 1991 Act:

1. Default in Payment of Rent (ভাড়া পরিশোধে খেলাপি): If the tenant fails to pay rent within the period fixed by contract, or in the absence of contract, by the 15th day of the month next following that for which rent is payable. Even if the tenant subsequently deposits arrears with the Rent Controller, habitual late payment can constitute statutory default.
2. Unlawful Subletting (অবৈধ উপ-ভাড়া): Transferring possession or subletting the whole or any part of the commercial premises without the landlord's express written consent.
3. Acts Damaging the Property (সম্পত্তির ক্ষতিসাধন): Creating unauthorized structural alterations, knocking down load-bearing walls, or violating municipal building approvals (RAJUK/City Corporation sanctions).
4. Nuisance & Annoyance: Engaging in illegal trades, using the premises for immoral purposes, or creating severe environmental hazards.
5. Bona Fide Personal Requirement (বাস্তব ব্যক্তিগত প্রয়োজন): The landlord genuinely requires the commercial premises for their own business occupation, expansion, or reconstruction.

The fatal mistake committed by inexperienced landlords is filing an eviction suit without serving a lawful statutory notice:

Section 106 Transfer of Property Act 1882: In the absence of a registered contract specifying otherwise, a lease of immovable property for agricultural or manufacturing purposes is terminable by six (6) months' notice expiring with the end of a year of tenancy; and a lease for any other purpose (including shops, offices, commercial retail) is terminable by fifteen (15) days' notice expiring with the end of a month of the tenancy.

Mandatory Notice Requirements:

• Drafted by an enrolled advocate of the Supreme Court of Bangladesh.
• Sent via Registered Post with Acknowledgment Due (A/D) and duplicate copy via reputable courier (DHL, Sundarban).
• Explicitly states the grounds of termination, demands vacant physical surrender by the specified date, and warns that remaining in occupation attracts liability for market-rate mesne profits.
• Preserve the postal dispatch receipt and signed A/D return card; it is Exhibit 'A' in the subsequent civil lawsuit.

Following the expiration of the notice period, if the tenant refuses to vacate, an Ejectment Suit (উচ্ছেদ মামলা) must be instituted in the competent Civil Court having local territorial jurisdiction:

• Pecuniary Jurisdiction: Determined by the annual rental valuation of the premises:
  • Up to BDT 15 Lakh: Senior Assistant Judge Court.
  • BDT 15 Lakh to BDT 25 Lakh: Sub-Judge Court.
  • Above BDT 25 Lakh: Joint District Judge Court.
• Statutory Court Fees: Under Section 7(xi)(cc) of the Court-fees Act 1870, court fees in a suit for recovery of immovable property from a tenant are assessed according to the amount of the rent of the premises payable for the year next before the date of presenting the plaint. This ad-valorem fee is significantly lower than full property market value suits, making eviction litigation highly cost-effective for landlords.

The following table illustrates the jurisdictional boundaries between the House Rent Controller and Civil Courts:

During eviction litigation, dishonest commercial tenants frequently attempt to alter the property's physical character, install heavy machinery, or secretly transfer possession to third-party sub-tenants to derail proceedings:

Order 39 Rules 1 & 2 CPC Injunction Petition: Simultaneously with the plaint, your advocate files an urgent application for temporary injunction. The Civil Court passes an ad-interim restraining order prohibiting the tenant from: (1) Altering the physical structure or facade of the premises, (2) Subletting, transferring, or creating third-party liens, and (3) Removing commercial fixtures without clearing outstanding utility dues.

Under Section 2(12) of the Code of Civil Procedure 1908, Mesne Profits (ওয়াসিলাত / Wasilat) are defined as profits that the person in wrongful possession actually received or might with ordinary diligence have received, together with interest on such profits.

How Mesne Profits Shift Leverage to the Landlord:

• From the exact date the Section 106 notice expires, the tenant's lawful tenancy terminates and their status transforms into a 'trespasser'.
• The civil court awards damages not at the historical contract rent, but at the prevailing commercial market rental rate for every month of unlawful overstay until vacant possession is delivered.
• For prime commercial real estate in Dhaka (e.g. BDT 3 to 5 Lakh/month), mesne profits accumulate into tens of lakhs of Taka, creating overwhelming financial pressure on the tenant to settle and vacate.

Once the civil court delivers judgment decreeing eviction:

1. Execution Case (জারী মামলা): File an Execution Case under Order XXI Rule 35 of the CPC for delivery of immovable property.
2. Writ of Possession (দখলনামা পরোয়ানা): The court issues a writ directing the Court Nazir to attend the premises and evict all occupants.
3. Police Assistance (পুলিশ ফোর্স মোতায়েন): Under Order XXI Rule 35 read with Section 151 CPC, the court directs the local Police Station (OC) to provide armed police force to remove locks, break physical resistance, and escort the tenant's movable goods off the premises.
4. Distress Warrant for Arrears: To satisfy unpaid rent and mesne profits, the court issues a Distress Warrant (ক্রোক পরোয়ানা) attaching the tenant's commercial bank accounts, inventory, and office equipment.

Background: Mr. Manzur Morshed, a British Bangladeshi investor residing in London, owned a 3,500 sq. ft. ground-floor commercial showroom in Uttara Sector 3, Dhaka, leased to a home decor brand at BDT 3.2 Lakh per month. The tenant stopped paying rent for 11 months, accumulating BDT 35.2 Lakh in arrears, and refused to vacate citing business losses.

Chamber Legal Rescue:

1. Executed a Special Power of Attorney at the Bangladesh High Commission in London, authenticated via MOFA and Dhaka DC office in 18 days.
2. Served an airtight 15-day statutory Notice to Quit under Section 106 TP Act via registered post and personal service.
3. Instituted Title Ejectment Suit No. 52/2024 before the Court of Joint District Judge, Dhaka, praying for eviction, arrears, and mesne profits of BDT 4.5 Lakh/month.
4. Secured an emergency Order 39 injunction restraining the tenant from shifting machinery or subletting.
5. Faced with mounting mesne profit liability and impending court eviction, the tenant entered into an in-court compromise (Solenama), cleared 100% of arrears via pay orders, and handed over vacant physical possession in 75 business days.

To prevent eviction litigation in future tenancies, incorporate these non-negotiable legal clauses:

• Mandatory Registration: Under Section 107 of the TP Act and Section 17 of the Registration Act, any lease exceeding one year MUST be registered. An unregistered long-term lease defaults to a month-to-month tenancy terminable on 15 days' notice.
• Automatic Forfeiture Clause: Explicitly specify that non-payment of rent for 30 consecutive days automatically forfeits the lease without requiring judicial declaration.
• Express Disclaimer of Rent Control Protection: Insert tenant waivers regarding voluntary surrender upon expiry.
• Arbitration & Dispute Forum: Designate formal commercial arbitration or summary eviction submission before Dhaka courts.

No! Self-help lockouts are illegal under Bangladeshi law. Padlocking premises without a court bailiff constitutes criminal trespass and illegal restraint under Section 441 of the Penal Code 1860, allowing the tenant to secure police intervention against the landlord.

A contested ejectment suit in the civil court typically takes 12 to 24 months. However, serving Section 106 notice and securing Order 39 injunctions and mesne profit orders frequently forces tenants to settle within 3 to 6 months.

It is the mandatory statutory notice served under the Transfer of Property Act 1882 terminating the tenancy, giving 15 days (monthly lease) or 6 months (manufacturing lease) to vacate before an eviction suit can be filed.

Yes. An expatriate landlord can execute a Consular Special Power of Attorney abroad empowering an advocate or family member in Bangladesh to sign plaints, conduct litigation, and receive vacant possession.

Mesne profits are monetary compensation awarded by the court for unlawful occupation, calculated at the prevailing commercial market rate from the date the tenancy terminated until physical possession is restored.

If the tenant was already a statutory defaulter or if the fixed-term lease expired by efflux of time, depositing rent with the Rent Controller does NOT cure the default or bar a civil court ejectment suit.

Under Section 107 of the TP Act, an unregistered lease exceeding one year is inadmissible to prove a long-term tenancy, but can be relied upon under Section 49 of the Registration Act as evidence of part performance or monthly tenancy.

The landlord is entitled to adjust the security deposit against outstanding rental arrears, unpaid electricity/gas utility bills, and property damage before refunding any remaining balance.