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P RaviShankar-cell-8939332195 (Advocate )     12 January 2021

return of lease amount from house owner

house taken for lease, lease agreement signed but not registered. I gave Rs 19 lakhs as lease amount. lease period was 3 years. when I was out of town, bank had sealed the house saying house owner had mortgaged the house and that he had not repaid to bank. house owner did not inform me that he had mortgaged the house when I entered into lease agreement. now lease period is over. how do I get back the lease amount from house owner.


 4 Replies

Nandini Warrier   12 January 2021

Good evening, First of all, you mentioned that the lease was unregistered. This itself is, according to law, not valid. Under registration act 1908, section 105 talks about registration of any lease, of immovable property such as houses, land, if the lease period is over a period of 1 year. Since you've leased the house for 3 years, you should have registered your lease, or else the lease agreement will be considered INVALID. Since your lease agreement is invalid, you can't use it as evidence in the bank either. You can approach the mentioned bank and state your concern, or you can file a case in civil court with this concern, but since the lease agreement itself is considered invalid, the result might not be very satisfactory on your side. Good luck to you, Regards Nandini

G.L.N. Prasad (Retired employee.)     13 January 2021

Contact a local advocate and issue the notice to the lessor. There is no such rule that a lease can not be given when the property is under the mortgage. The presumption is that the property market value is higher than the loan amount and only through court you can get some remedy through directions to the bank/lessor if the property is put to auction. Without giving notice, sealing some house occupied by someone appears to be strange.
1 Like

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     13 January 2021

Your query lacks clarity. 1. The first point is when did the lease (based on unregistered lease agreement) period start? 2, In whose possession the property was when the bank sealed it. Since you used the word sealed, it is presumed that the property is a house or office building. 3. By the time bank sealed the property, how much of the lease period completed. You say it was for 3 years. After the lapse of how many days/months/years within such lease period, the bank sealed the property. Official. 4.Was the property sealed by the bank as part of the execution of a Decree against the Original Owner? 5. You merely mention that when you were out of station bank sealed the property. What about your belongings in the building? Ultimately, your interest is the refund of rent for the unexpired portion of the lease. For this, you need to approach the original Owner and try to get a refund. If the efforts fail you need to approach the court for the same. Therefore, as already advised above, you may do the needful. If there is an objection regarding the unregistered lease agreement, you can get it rectified by paying the requisite fine, etc. (of course such an amount is far less than the refund you need to get) and proceed to file a case for recovery of the amount due to you.

Dr J C Vashista (Advocate)     14 January 2021

Unregistered lease for a period of 1 year and more can not be admitted in evidence.

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