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abcdefghijk (BPO)     09 November 2009

Registration of rent agreement

Recently I have let my three properties (one residential and two commercial) situated at three different places in New-Mumbai and Maharashtra. All agreements are for 11 months tenure on non judicial stamp paper of Rs 100/- effective from 1st April 2009. However later I came to know that it is mandatory to register such agreement. Can you please advice me what should I do now? Does it mean that these agreements are illegal and I can’t take any legal action in case tenants refuse to vacant the places after 11 months? What precautions should I take in future while entering such agreements?



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 20 Replies

Raj Kumar Makkad (Adv P & H High Court Chandigarh)     09 November 2009

You should first talk personally and convince your tenants to comply with the rule of registraion and if they fail then serve them legal notice. You have nothing to wrry. The tenants are more sufferers if the agreements are not registered.

Sanjeev Kuchhal (Publishers)     09 November 2009

In case of Leave and license agreement entered on or after 10th March, 2000 when Maharashtra Rent Control Act, 1999 came into force, it is mandatory for landlord to get the agreement of leave and license recorded in writing and registered under the Registration Act.

 

However failure in that regard would warrant consequences as stipulated u/s 55 but does not result in denying other rights assured to the landlord under the Act. Section 24 nowhere imposes any embargo over right of the landlord on account of the agreement being not registered or even on account of such agreement being not in writing. Provisions of law in the Rent Act nowhere exclude unregistered agreement of leave and license to be inadmissible in evidence. Right of the landlord u/s 24 to get the person evicted on expiry of the license not curtailed in any manner on account of absence of the agreement being in writing or registered. Non-registration of agreement will not affect the rights of licensor/ landlord/ owner to seek eviction of licensee on expiry of licence period.

 

1 Like

Sanjeev Kuchhal (Publishers)     09 November 2009

Mr. Prasad, you can also get the agreement registered now, if possible, as the document required to be registered has to be presented for registration maximum within a period of eight months from the date of its execution.

Swarna (Assistant Manager - Legal)     11 November 2009

Mr. Prasad,

Section 23 of the Indian Registration Act, 1908 requires that, subject to certain exceptions, a document requiring registration has to be presented for registration within four months from the date of its execution (signing of the document).  Kindly take note of the same.

Regards,

Swarna

 

Sanjeev Kuchhal (Publishers)     11 November 2009

In terms of Section 23 of Registration Act, a document is required to be presented for registration within four months from the date of its execution and in case of unavoidable circumstances, with the leave of the Registrar, it can be presented within the period of four months immediately after expiry of the initial period of four months. 

Obviously, a document required to be registered has to be presented for registration maximum within a period of eight months from the date of its execution.

Swarna (Assistant Manager - Legal)     11 November 2009

Mr. Sanjeev,

Under Section 25, additional 4 months time is given for presentation of the document for registration only in cases of "urgent necessity" or "unavoidable accident" and not always.

Mr. Prasad's case does not fall within the above two categories in my view. 

Am I missing something ? Pls let me know.

Regards,

Swarna

 

Sanjeev Kuchhal (Publishers)     11 November 2009

Dear Swarna,

Here we are are talking about the MAXIMUM PERIOD in which the document can be presented for registration. I just highlighted the provisions of law.

It is a different thing whether the leave for registration is given or not or what fine can be imposed. It is within the discretion of Registrar. It may depend on many things. Terms "urgent necessity" or "unavoidable accident" are capable of wide interpretations. It will depend mainly on as to how the case is presented. We cannot preclose an option in anticipation.

I hope that you will agree that the OPTION IS OPEN.

Swarna (Assistant Manager - Legal)     11 November 2009

Dear Mr. Sanjeev,

Since the words "may direct" have been used in Section 25, I have been a little too cautious in its iterpretation.

However, I agree with you that a lot depends on the way the case is presented and Mr. Prasad can still try to register the agreement. 

But, wouldn't a Deed of Confirmation signed by both the parties be required to apply for registration of this document in this grace period and in this case if the tenants do not co-operate, is there any way out for Mr. Prasad.  Please advise Mr. Prasad and myself since this can be of great help to me as well. 

Regards,

Swarna

Sanjeev Kuchhal (Publishers)     11 November 2009

It is just an acedemic question. Even if tenant does not co-operate the non-registration of agreement will not affect the rights of licensor/ landlord/ owner to seek eviction of licensee on expiry of licence period.

abcdefghijk (BPO)     11 November 2009

Thanks Guys. I am not a lawyer. What i understood from the above discussion is, " I can't register the agreement now but when I will renew the agreement, I should get it registered. "

However I am not yet clear about one thing. If non registration of the agreement is not affecting right of owner to seek eviction of licensee on expiry of license period, why should one go to spend money for registration?  What are the advantages of getting the agreement registered?

abcdefghijk (BPO)     11 November 2009

Many thanks for your valuable comments. You might have gone through the whole thread of discussion after you post your comment. I am not yet clear about, why one should spend money for registration? If non registration of the agreement is not affecting right of owner to seek eviction of licensee on expiry of license period or in other words, what are the advantages of getting the agreement registered?

I seek your expert opinion as a lawyer
 
Regards,
 
Prasad

Sanjeev Kuchhal (Publishers)     11 November 2009

Mr.Prasad,

Section 55 of Maharashtra Rent Control Rent reads as under "

"55. Tenancy agreement to be compulsorily registered.

(1) Notwithstanding anything contained in this Act or any other law for the time being in force, any agreement for leave and licence or letting of any premises, entered into between the landlord and the tenant or the licensee, as the case may be, after the commencement of this Act, shall be in writing and shall be registered under the Registration Act, 1908.

(2) The responsibility of getting such agreement registered shall be on the landlord and in the absence of the written registered agreement, the contention of the tenant about the terms and conditions subject to which a premises have been given to him by the landlord on leave and licence or have been let to him, shall prevail, unless proved otherwise.

(3) Any landlord who contravenes the provisions of this section shall, on conviction, be punished with imprisonment which may extend to three months or with fine not exceeding rupees five thousand or with both."

If you see my earlier reply it will be clear that failure to register the agreement would warrant consequences as stipulated u/s 55 (Read Sub-section 3) but does not result in denying other rights assured to the landlord under the Act.

 

1 Like

Sanjeev Kuchhal (Publishers)     11 November 2009

It is also not any where mentioned that you cannot get your agreement registered now.  As per your posting eight months period is not yet over since the execution of agreement. Meet a local lawyer and try to get the agreement registered.

Himanshu shukla (consultant)     09 December 2009

Dear Sir
i havea house at mhada colony four bunglow andheri(west) which hvae given on rent on the leave and license basis, it was for the 11 months, i have told them(licensee) to get it registered but they refused to do so, saying that they are not having enough money for that and they also require money for the treatment for their mentally retarded child, they were very much irregular in paying me the rent, the leave and license agreement is over on 31 -10-2009 but they have refused to vacate the flat instead they are asking me rs 10 lacs to vacate the flat. the police is not helping us , please tell us how can i can get the eviction order from the court. thanks


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