Lease agreement between the landlord and bank.
KETAN J SHAH
(Querist) 26 July 2017
This query is : Resolved
respected Sirs,
I am a Landlord and my property is in Mumbai. In 1970 the property is leased to a Nationalised Bank. with a monthly Rent of Rs.0.75 ps per sq.ft for 3765 sq.ft area. The Lease was for 75 years with 3 options of renewal at interval of 25 years each. In 1984 additional 1000 sq.ft was leased to Bank with a monthly Rent of Rs.6/- per sq.ft for this premises. After the end of first lease period and with continuos corespondance with Bank the Rent was increased to Rs.15/- per sq.ft for both the premises with 4% permitted increase every year.. The offer letter sent to me was for 10 years and 4 options of 10 years for renewal. However when the fresh agreement was sent to me it contained the clause that the renewal lease would be for 50 years and No Option of Rent revision.
Now today the Rentals in our area in Ghatkopar are Rs.300 to Rs.400 per sq.ft. I requested to Bank for upward revision but Bank says they will not entertain any request by me until the expiry of Lease period which expires in 2044. I have been in constant correspondance with Bank for increase in Rent but Bank is not ready . I told the Bank that just for one sentence that the Rent to remain the same till end of the lease period I should not be penalised and made to loose the monetary benefits. I do not have any other business and I am totally dependant on the Rent . But Bank officers are not ready to listen.
In todays life it is very difficult to manage with such meager Rent. In fact Bank has increased the Rent of many of its other Branches in Mumbai. But they are not ready to discuss the matter with me.
I can go for litigation as I am having the original offer letter and all other corespondance entered into with Bank but as it would take many years to get a result at present i do not intend to enter into any litigation.
I humbly request you to suggest me somre means by which without entering into any litigation I can convince the Bank for increase in Rent.
Awaiting your reply and Thanking you in advance
Rajendra K Goyal
(Expert) 26 July 2017
You have signed agreement and have to abide by the terms and bound to it.
However, you have to go for litigation if there exist any loophole after discussion with your lawyer.
Kumar Doab
(Expert) 26 July 2017
You may seek professional help from a very able senior local counsel of unshakable repute and integrity specializing in such matters and well versed with local rules/laws...................
Kumar Doab
(Expert) 26 July 2017
LCI experts Mr. Hemant Agarwal, Mr. Madhu, Mr. M V Gupta, Mr. Kishore Mehta, Mr. Yogen kakade from your state/location post on such matters.
If you wish you can get in touch with them.
