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Consequences of non-renewal of compromise decree?

(Querist) 19 November 2013 This query is : Resolved 
A Compromise Decree was passed before mediation Between me and tenant.

Term was defined as 3 years (Jan11..Dec13)

Renewal Clause : After the expiry of the term period both the parties may mutually agree to extend the period on such T&C as may be mutually agreed from time to time with minimum increment of 15% on prevailing fees for next 2 renewals.

31-Dec-13 is coming to end 1st term.

My querry is can I disagree to continue after Dec13 and cancel the decree?

After disgreeing to continue the relationship of landlord and tenant Can I directly file execution for getting vacation of shop?

what other consequences which may I have to face by disagreeing ?

thanks in advance
BAALASUBRAMANNYAMM (Expert) 20 November 2013
Here you have to observe the following terms.
(1) Here, the renewal clause is different and termination clause is different.
The renewal clause is strictly speaking about the hike of the rent. As per the said renewal clause, you are not supposed to cancel the agreement.
(2) If there is a separate clause of termination/vacation, mentioning that "in the event of requirement the premises of the landlord, the tenant has to be vacated the premises, wherein the land lord should give a prior notice not lesser than ...months time period.
If there is no clause No.2 above, in your compromise deed, it is not possible to vacate right now.
ajay sethi (Expert) 20 November 2013
you are not bound to renew the agreement . as per renewal clause it can be by mutual consent only .

compromise decree ought to have contained provisions regarding non renewal .

if you dont want to renew request tenant to vacate the premises .if tenant refuses o vacate you will have to take legal proceedings again
Kishor Mehta (Expert) 20 November 2013
Sir,
The terminology of the renewal term is important:
"Renewal Clause : After the expiry of the term period both the parties may mutually agree to extend the period on such T&D as may be mutually agreed from time to time with minimum increment of 15% on prevailing fees for next 2 renewals."
Here the words "may" & "mutually" play an important part, they keep an open leeway for the lessor to refuse renewal. You can refuse to renew the term and ask the tenant to vacate.
Good Luck,
Kishor Mehta
Struggling Landlord (Querist) 21 November 2013
Thanks to all, My local lawyer (who have drafted this CD) says : "To give Reg.AD. letter to tenant and mention that the Tenant's first term is completing on Dec13, and I(landlord) is not intended to continue on existing (CD Terms) terms and refuse to continue and ask for vacation" then after completion if tenant continues to occupy then give him legal notice, that he had breached and continuing as illegal occupier and is liable for damages, similarly after notice period is over file an execution proceedings demanding possession and also as relief stating that till the tenant vacates ask to him to deposite some amount as damages in court till landlord gets possession. ...
But other lawyer says once u refuse to continue then tenant will be protected by Regional Act (ie Maharashtra Rent Act 1999) and Landlord has to seek due normal CPC procedure for getting him vacated / damages. (I can not take advantage of decree execution) .... Please give your valuable comments :.... Thanks in advance
ajay sethi (Expert) 21 November 2013
agree with second lawyer .


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