due arrier rent and commercial surcharge
ashok kumar choraria
(Querist) 07 September 2010
This query is : Resolved
A premises at Kolkata,W.B.was given on lease to a public sector bank in the year 1986 on the basis of a Letter of Agreement for a period of 9 years @Rs.09/=(nine)per Sq.ft. with an option with the bank to renew the same for a further term of six years with an increase in rent @20% on expiry of the first term of nine years. Taxes (Municipal Corporation Tax) to be born by the bank and the lessor in the ratio 50-50.The Lease expired on 31.03.2001.On expiry of the Lease The Landlord submitted a fresh offer to The bank to renew the Lease @Rs.25/= per Sq.Ft.with a clause to increase the rent @20%after every 3 years. and taxes to be born by the bank 100%.the bank neither vacated nor renewed the Lease. The premises remained occupied by the bank without any formal Lease Agreement.save and except various proposals and verbal representations from the Landlord's side only, till the year 2008.in the year 2008 bank gave one letter that they are willing to renew the lease @Rs.35/= per sq.ft. effective 01.01.2008 and no arrears(difference of rent,paid by bank @Rs.10/80 per sq.ft. and Rs.25/= and subsequent increase @20%every three years,as demanded by the landlord )will be paid.The Commercial surcharge imposed by the Kolkata Municipal corporation was also paid to the tune of 50% by the bank in spite of several reminders from the landlord. it was also brought to the notice to the bank that as per the Ho'ble Calcutta High Courts verdict the commercial surcharge,imposed by the Kolkata Municipal Corporation will have to be born by the occupier of the premises,using it for commercial purpose, regardless of any agreement between the Landlord & the Tenant for sharing of Taxes.Now on September 01 2010 the bank has given a letter to surrender the premises, asking the Landlord to take the possession of the premises.
My question is can bank deny their liabilities for the arrier rent and taxes.what is the best option before the landlord to compel the bank to pay the arrier rents and Taxes&dues.
The prevailing rate of rent in this Area presently is in between Rs100/- to 125/-per sq.ft.
Devajyoti Barman
(Expert) 07 September 2010
Did the bank pay rent n all those years and did the lessor accept it? If yes and then it was the valid receipt and now the lessor could do nothing.
Something can be done only if the lessor accepted the rent on protest or as an interim measure till a formal deed of lease is executed.
