LEASE LAW NOT TAUGHT IN

LAW SCHOOL
BY
T A SRINIVASEN
Head Legal
Dalmia Cement (Bharat Limited
1. Whether Lease can be oral?
Yes, a Lease can be in a oral form and the
same is binding on parties to the Lease.
2. Then why Lease is sought to be
expressed in writing?
This is because there should not be any doubt over the commercial
terms /conditions and the amenities / facilities provided therein.
3. Whether Registration of Lease is
required?
Registration of Lease is required for Lease
exceeding one year or more under Section
17(1) of The Registration Act 1908.
4. Why Registration is required?
Any document which requires compulsory
registration shall not be received as an
evidence of any transaction affecting such
property or conferring such right, unless it
is Registered.
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.
6. What is Tenancy at will?
When the Lease gives powers to one or
both of the parties to terminate the Lease
before the duration of Lease. Then it will
be called tenancy at will and the same
need not be registered.
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.
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/-
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.
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 only
through the Process of Law. As long as the
tenant pays the rent and complies with the
other terms & conditions he cannot be
evicted. The Law is considerate to the
tenant.
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:

12. Where the above provisions have been
given?
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
13. Whether it applies to Non residential
buildings?
Yes it applies to both residential and non
residential buildings and helps to fixation
of FAIR RENT. It takes away the land
lords unrestrictive powers to evict the
tenants.
14. Whether it Supersedes Transfer of Property
Act?
Yes it is a Special Act and substantially
modified the provisions of the Transfer
of Property Act. In case of inconsistency
the Rent Control Act alone will prevail.
Thus it supersedes the Transfer of
Property Act.
15. What about the Contract/Agreement entered
between 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.
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.
17. Is it encroachment of Freedom of
Contract?
Yes, Rent Control Act, seriously encroaches
the freedom of contract, restricts the powers
of the Land Lord to evict the Tenant and to a
great extent makes the terms of the Contract
and provisions of Transfer of Property Act no
longer applicable.
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 is
insufficient.
19. Is it a Constitutionally Valid
Provision?
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.
THANKYOU