The validity of unregistered licensed agreement
Querist :
Anonymous
(Querist) 06 June 2020
This query is : Resolved
If a license agreement is not registered then what is the validity of the agreement in eye of law & court plus is it adimissible in court during legal dispute? Who ( licensor or licensee or both) has to bear the penalty of the unregistration the agreement?
Raj Kumar Makkad
(Expert) 06 June 2020
There is no predicting when trouble might strike. It gets only worse when it is of a legal nature. The laws of the land laid down often benefit the tenants in events of legal disputes between tenants and landlords. In the event of absence of a registered agreement, the tenant’s claims of the provisions of the rental agreement will be upheld in court. Conversely, protecting the tenant’s fundamental tenancy rights, becomes simpler. Seeking redressal at the first steps, like filing police complaints, is less complicated and definitely more hassle free. There is also a chance of receiving fair justice. The absence of a registered agreement, causes court battles to be heavily dependent on which party can afford a better lawyer. Keeping a registered agreement, at the very onset of the tenancy, helps to do away with this disparity in event of unfortunate legal issues.
Raj Kumar Makkad
(Expert) 06 June 2020
Unlike notarised documents, registered agreements go through rigorous verification. As a result, they include every clause a proper leave and lease agreement should contain. Some important clauses that every landlord and tenant should take note are:
Details of landlord and tenant including government approved identity proof of both parties and permanent residential addresses.
Explicit details of monthly rent amount and what it includes. It must also be mentioned if rent is to be paid in advance or arrears.
The amount of security deposit collected and its type – refundable or non refundable.
The exact period of validity of the agreement. The usual time period is six to eleven consecutive months in one calendar year.
Mention of maintenance and utility charges in exact amount and who is responsible for their payments.
Clear statement of terms and conditions of cancellation and notice periods.
Lock-in period and all penalties incurred on breaking it.
Representations by both parties noting down responsibilities of landlord and tenant responsibilities towards financial transition, property management and behaviour in society at large.
Any other miscellaneous clauses that are relevant to the property being rented out.
Rajendra K Goyal
(Expert) 06 June 2020
Allahabad High Court in the case Sushil Kumar Soni (Sarraf) vs Smt. Sheela on 30 October, 2015 has observed:
29. Recently, Section 49 proviso has come for consideration before Apex Court in K.B. Saha and sons Private Limited Vs. Development Consultant Limited (2008) 8 SCC 564 and the Court said:
"1. A document required to be registered, if unregistered is not admissible into evidence under Section 49 of the Registration Act.
2. Such unregistered document can however be used as an evidence of collateral purpose as provided in the proviso to Section 49 of the Registration Act.
3. A collateral transaction must be independent of, or divisible from, the transaction to effect which the law required registration.
4. A collateral transaction must be a transaction not itself required to be effected by a registered document, that is, a transaction creating, etc. any right, title or interest in immovable property of the value of one hundred rupees and upwards.
5. If a document is inadmissible in evidence for want of registration, none of its terms can be admitted in evidence and that to use a document for the purpose of proving an important clause would not be using it as a collateral purpose." (emphasis added)
P. Venu
(Expert) 07 June 2020
Any suggestion depends upon the nature and the averments raised in the dispute, if any.
Querist :
Anonymous
(Querist) 07 June 2020
What kinds of opinions?
P. Venu
(Expert) 07 June 2020
Why don't you post simple facts avoiding subjective opinions?
Querist :
Anonymous
(Querist) 07 June 2020
Who has to bears penalty charges?
Rajendra K Goyal
(Expert) 08 June 2020
The person who is liable to pay original stamp fee would be liable to pay penalty charges.
Rajendra K Goyal
(Expert) 08 June 2020
A reference of newspaper item in reference as to who is liable to pay stamp fee:
Who should bear the cost?
In the absence of an agreement to the contrary, the expense of providing proper stamp should be borne by:
In case of mortgage by deposit of deed, hypothecation, further charge, indemnity bond, it should be settled by the person drawing, making or executing the instrument
In conveyance (sale etc) deed, including reconveyance by the grantee, purchaser is liable to pay stamp duty
In case of a lease, the lessee is liable
In case of power of attorney, the executing party is liable
In case of certificate of sale on auction of property, it is the liability of the purchaser
In case of exchange deed, both parties are liable equally
In case of a partition deed, all the parties are liable in proportion to their shares
In case of a doubt on duty payable on any instrument, an application may be made to the District Registrar (Dy Commissioner of Stamps) with a draft of the proposed deed o ..
Read more at:
https://economictimes.indiatimes.com/stamp-duty-whose-responsibility-is-it/articleshow/2477455.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
P. Venu
(Expert) 08 June 2020
The author has since changed his posting made on 7th.
Raj Kumar Makkad
(Expert) 08 June 2020
Replies cannot be changed with the modification of the query by the author rather the latest query makes the reply as irrelevant.
Rajendra K Goyal
(Expert) 08 June 2020
It is strange that such step is taken by the author. Not a good habit.
Dr J C Vashista
(Expert) 09 June 2020
Dear Experts,
I could not understand the facts / agreement qua "licence" has no where mentioned by the autor in his query or supplimenatray query, wherein you have presumed, discussed, deliberated / explained it to be a "leave & licence" executed between landlord and tenant, which may not be the actual case as "licence" may be for some other actions/ functions such as liquor licence, driving licence, licence for production /sale of chemicals, pharmeacutical etc. etc.
After one supplimentary query qua payment of penalty the "anonymous" author is silent, whereas, experts are scratching their heads for wasteful exercise.
Please treat this thread as closed.
Thanks and regards
P. Venu
(Expert) 09 June 2020
Mr.Vashista:
Why to blame the author, even if anonymous? Of late, some experts have been more obsessed with self dealing, for reasons better known to themselves, than adding value to each discussions. And coupled with, the experts are too anxious pat each others back at each and every opportunity. The net result is that every thread is made clumsy and cumbersome and meaningful and relevant suggestion is crowded out. Of course, we have our leaders who harp on "what is not wrong" instead of what is right.
Raj Kumar Makkad
(Expert) 09 June 2020
I do agree with the opinion of expert P. Venu. Everything is going on unabatted but I differ on the opinion of leadership as none is leader here. This is also the reply of the query raised by Dr. Vashistha.
Rajendra K Goyal
(Expert) 13 June 2020
If the author changes his query without any reason to do so, it gives the impression that the replies given were not relevant / unconnected / away from the facts. Such steps should be discouraged.
Rajendra K Goyal
(Expert) 13 June 2020
Experts and also the authors are free to agree or disagree with the advice from others, still mutual respect must be maintained.
Some experts may think replies from others as baseless instead to appreciate selfless / volunteer effort of the contributor.
Sometime the comments on other experts are coming from the experts who never observed self-discipline but leave no chance to criticize others.
P. Venu
(Expert) 13 June 2020
Posting multiple replies is the root cause of prevailing indiscipline among the experts.
Raj Kumar Makkad
(Expert) 13 June 2020
Mr. P. Venu
Have you counted your short and small replies in this thread before posting your last irrelevant post? Better to set own example so that all others may learn and follow you.
Raj Kumar Makkad
(Expert) 13 June 2020
After all we all are lawyers and do contribute here out time and energy and also acquire indepth legal knowledge. There should not be ego of any type in appreciating each other and if it cannot be done then also at least respect to each other can definitely be given. I humbly request that criticism in the name should be avoided on this public platform and in case of any grouse, the option of PM or cell may be used.
Rajendra K Goyal
(Expert) 13 June 2020
A good suggestion from expert Raj Kumar Makkad.
Hopeful for imposition of self discipline.
Raj Kumar Makkad
(Expert) 13 June 2020
Thanks Mr. goyal for coming to an agreeable point. I hope we all may agree to this noble advice.
Rajendra K Goyal
(Expert) 14 June 2020
Agree self discipline is main factor for success.
