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NPKailaasam (ADVOCATE & Management Consultant)     20 May 2014

Whether unregistered rent agreement for 3 years valid

Dear experts,

Whether unregistered Rent agreement for 3 yeras in tamilnadu state a valid document,whether the registration compulsary,One case here is a person goes on with an unregistered rentel agreement for 3 years with the building owner to run a business with using machinery  and after a year gone unfortunately there occurs a fire accident.The building and machineries are not insured .Now the building owner demands huge money for compensation and he demanded to construct the building as new and gone to civil court and get an interim stay order against the tenant not to dispose his machines from the building unless the building is constructed as it is in previous stage.what the tenant to do to vacate the stay order ,kindly give valid advice to move further in court. 



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 5 Replies

adv.raghavan (Advocate,9444674980)     20 May 2014

Any rental agreement unregistered is valid only for 3 years,  and it is a   valid document to initiate any legal action against the tenant,and registration  is optional. If agreement has any liability clause with regards to any untoward incident  , the tenant has to follow it, and make good of any loss incurred . If it remains silent then he has to contest the case and get the stay vacated,as the agreement itself has no mentioning about this. So court will be the ultimate authority to fix responsibility. 

sonal (head)     22 May 2014

hi raghavan sir, i think under registeration act its 11 months for which document need not to be registered. over it is mandatory.where it is written 3 years? regards

adv.raghavan (Advocate,9444674980)     22 May 2014

I have answered the query whether rental agreement entered  by the concerned client of the counsel for 3 years is valid for initiating legal proceeding, i said yes it is valid. No where i have mentioned or referred any particular act in this regard. I accept your version “As per the Registration Act, 1908, clause (d) of sub-section (1), registration of the property that is on lease for one year or more than a year, but no where it bares anybody from entering into an agreement for 3 or more years,one can definitely execute the rental agreement for 36 month with some additional clauses, which include the following:

  • Average increase of 5-7 per cent on an yearly basis
  • Either party can terminate the rent agreement by giving a notice in three month advance without mentioning any reason for termination and conditions as standard.”

It is purely prerogative of the parties concerned, whether the document will stand the test , to some extent is yes,since it is unregistered document it will not be considered as primary evidence.

NPKailaasam (ADVOCATE & Management Consultant)     27 May 2014

Sir, can we file petition to appoint advocate commissioner to inspect the damages and submit report.whether the tenant wholly responsible for the unexpected fire accident as it may occurs due to electric cable are old as the owner is the responsible person for the electrical wire installation and how the tenant wholly responsible and also the building was above 30 years old and how the owner demands to construct it as new one.whether we file petition to take the m/c form the premises as there is no safety and the m/c worth more than 25 L then it will get damage or theft as there is no protection for the m/c and the tenant will be affected.How we move further to vacate the court stay to dispose the m/c.

adv.raghavan (Advocate,9444674980)     27 May 2014

if possible give me suit details to update you further.


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