Registration of a lease deed
G.Padmanabhan
(Querist) 06 December 2011
This query is : Resolved
A deed of lease for 11 months is to be executed at Chennai. A clause is inserted in the deed giving freedom to the parties to extend the lease on the same terms for a period of 25 more months, without executing a fresh deed. The consideration is one time lease premium of Rs.5,00,000 (interest free and returnable at the end of the lease period)
As the lease is for less than 30 years, the document would be stamped at 1% of the lease premium (i.e. Rs. 5000).
In the circumstances
1) would the lead deed require registration.
Answers with reasons would be most appereciated.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 06 December 2011
Law provides for registration for longer periods but it all depends whether you are tenant or landlord.
Devajyoti Barman
(Expert) 06 December 2011
The lease for the period beyond one year is compulsorily registrable .
M.Sheik Mohammed Ali
(Expert) 06 December 2011
yes. more than 100 rupees agreement must register as per Registration act, meantime who ever agreement made out more than 11 months there should be register.
Shailesh Kr. Shah
(Expert) 06 December 2011
Check section 17(1)(d) of the Registration Act as applicable in tamilnadu.
H. S. Thukral
(Expert) 06 December 2011
No registration is required as the initial lease is for less than one year. If at the end of 11 month, parties agree to extend it for 25 months, then it has to be registered. If it is not registered then the lease after initial 11 months shall be from month to month.
Raj Kumar Makkad
(Expert) 06 December 2011
Harbhajan Singh G! Querist is clear in asking his query but we are confused in reading it.
He has clearly given fact that for 11 months no registration is required, this fact he knows but he wants to know about next 25 months. He asks whether it require registration now?
I am of the opinion that it requires registration after the expiry of 11 months as now it shall be for more than 2 years.
G.Padmanabhan
(Querist) 07 December 2011
RajKumar Makkadji,
You are right in reading my query. But, if the deed requires registration when the deed is extended after the expiry of 11 months, wouldn't the provisions of registration act come in the way? A deed is mandated to be presented for registration within 4 months of its execution? Would our experts offer further comments so that we could get to the bottom of this important issue. Resolution of this issue would be hugely helpful, as the above mentioned method is widely followed in practice.
prabhakar singh
(Expert) 07 December 2011
To my view mere incorporation of option of renewal for 25 months more{even a day more than 365 days} conferred upon lessee makes the very first lease of 11 months registration compulsory as of legal necessity.
H. S. Thukral
(Expert) 08 December 2011
You don't have to include the initial period of 11 months in the registration. Mention the lease date w.e.f. from renewal for a period of 25 months.
J K Agrawal
(Expert) 08 December 2011
I Could not understand why people make a lease for 11 month only ?
Why do not you make a lease for one month only and "if parties agree, extendable for the next month on the same terms"
In your example do not write anything for depcting it to be more than one year and it is valid without registration.
The status of tenant is as "Tenant by agreement" up to 11 month and "Tenant by attornment" after 11th month. He is no more a Tenant. He is a "person under licence as tenant".
I you want to learn some more complex terms are there but very simple term is get the agreement registered if it is question of 1% only.
Do you know you it may be a tough job to recover Your 5 lakh back if the agreement not found validly enforceable by the law?
