Law Not Taught in Law Schools - Lease

8/11/2019 Law Not Taught in Law Schools - Lease

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LEASE LAW NOT TAUGHT IN

LAW SCHOOL

BY

T A SRINIVASEN

Head Legal

Dalmia Cement (Bharat Limited


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1. Whether Lease can be oral?

Yes, a Lease can be in a oral form and thesame is binding on parties to the Lease.


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2. Then why Lease is sought to beexpressed in writing?

This is because there should not be any doubt over the commercial

terms /conditions and the amenities / facilities provided therein.


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3. Whether Registration of Lease isrequired?

Registration of Lease is required for Lease

exceeding one year or more under Section

17(1) of The Registration Act 1908.


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4. Why Registration is required?

Any document which requires compulsory

registration shall not be received as anevidence of any transaction affecting such

property or conferring such right, unless it

is Registered.


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5. What is the remedy for Non-

Registration of Lease ?

We can take shelter under several

Judgments of the courts, which says

TENANCY AT WILL need not be

registered AIR 1932 BOM 493, (1956)

2MLJ 75. We can take shelter under

Common Law too.


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6. What is Tenancy at will?

When the Lease gives powers to one or

both of the parties to terminate the Leasebefore the duration of Lease. Then it will

be called tenancy at will and the same

need not be registered.


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7. Whether it advisable to Register a

Lease?

Yes 100%. The Registration Act mandates

for the same and the cost of Stamp Duty

and Registration fees has been scaled

down.


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8. What is the stamp duty and registration fees payable?

IN TAMIL NADU

Lease below 30 years 1% on the total amount of rent,

premium, fine etc

Lease below 99 years 4% on the total amount of rent,

premium, fine etc

Lease above 99 years 8% on the total amount of rent,

premium, fine etc

Registration Fees is 1% subject to a maximum of Rs.20,000/-


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Stamp Duty Planning:

9. How to save Stamp Duty and Registration fees?

The Lease rentals can be split in to Lease Rent,

Amenities, Deposit etc. The Lease Rental Agreement

has to be registered first. The amenities agreement,Deposit agreement to be executed with reference to

the Lease rental agreement registered in a subsequent

day these Agreements need not be registered. By

doing this Stamp Duty on amenities/deposit can be

saved.


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10. The Lease Agreement is for 5 years, the

period of 5 years has been successfully

completed by the Tenant. Can I evict him?

No. It is not possible. This is possible onlythrough the Process of Law. As long as the

tenant pays the rent and complies with the

other terms & conditions he cannot beevicted. The Law is considerate to the

tenant.


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11. Then under what circumstances the tenant could be evicted?

~ Wilful default of payment of rent

~ Subletting

~ Different User

~ Acts of Waste

~ Immoral and illegal purpose

~ Acts of Nuisance

~ Non Occupation of the building

~ Denial of title

~ Personal Occupation

~ Additional Accomodation Demolition and Reconstruction

A tenant could be evicted only on the following grounds:


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12. Where the above provisions have beengiven?

Every State in India has Lease and Rent

Control Act for regulation of rights of Land

Lord and Tenants. For example: Tamilnadu

has - Tamilnadu Buildings (Lease and Rent

Control) Act, 1960


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13. Whether it applies to Non residentialbuildings?

Yes it applies to both residential and nonresidential buildings and helps to fixation

of FAIR RENT. It takes away the land

lords unrestrictive powers to evict thetenants.


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14. Whether it Supersedes Transfer of Property

Act?

Yes it is a Special Act and substantially

modified the provisions of the Transferof Property Act. In case of inconsistency

the Rent Control Act alone will prevail.

Thus it supersedes the Transfer of

Property Act.


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15. What about the Contract/Agreement enteredbetween the parties viz Lessor / Lessee?

The Rights and Remedies available

under the Rent Control Act are statutory

and prevail over the Contract /Agreement between the parties.


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16. Power of Rent Control Act?

Where Rent Control Act are in operation

a Land Lord cannot seek eviction of

Tenant unless he satisfies the

requirements of the Rent Control Act.


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18. Other aspects in Rent Control Act?

(a) Imposes obligation on the tenant to pay or

deposit all the arrears of rent if the chooses to

contest.

(b) Appeal and Revision provisions available.

(c) It also provides for exemption to meet a

contingency when remedy provided for isinsufficient.


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19. Is it a Constitutionally ValidProvision?

Yes, The Act is Constitutionally Valid

and held number of times it is not

DISCRIMINATORY in nature and does

not offend Article 14 and 19 of the

Constitution of India.


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THANK YOU

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Law Not Taught in Law Schools - Lease