SIDDHARTHA RATHI (proprietor) 10 March 2012
Hi! I have taken a property on rent for period of six years. The rent agreed upon is 4.5 lacs with increase @5% pa. The owner of the property has insisted on not getting the agreement registered and we agreed on the same. The lessor and lessee are both PVT LTD companies and agreement is supported by board resolution. Kindly guide me as to consequences of same so that we can take remedial action accordingly
Devesh A. Bhatia (Advocate) 19 June 2012
This will not be a valid agreement enforceable by court of law if it is not registered. Any transaction above rs. 100 and lease for more than 1 year has to be compulsorily registered. Obviously there would be registeration fees and other charges.
If you dont register this agreement and some dispute arises in future, the unregisted writeen agreement between the parties will not be admissible as evidence and the trial will continue on the bases of oral agreement only. I would advice registeration.
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