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VISHAL BHASIN (Director)     10 March 2011

Unregistered Lease

My Uncle is running a rented Showroom whose lease is not registered, he pays Rent in Cheque for Rs 130000 every month. The Building was in a very poor state when he took over and the market developed after he started his venture. My uncle soent a lot of money on the building and waited for the market to mature. The first unregistered lease was for 2 years and upon its expiry the owner got a new lease signed in April 2010 with the agreed increament but this lease was also not registered. Now since the owner is getting greedy he has sent an email stating eviction. My uncle has put alot of capital and time to develop his business , what are his options as he still pays rent on time and willingly wants to continue paying the rent and do his business. thnks



Learning

 1 Replies

Jerry Lopez (Lawyer)     11 March 2011

My Friend Vishal,

First of All your details are not complete even though 

The Registration Act mandates that all lease deeds for lease periods above eleven months must be registered and the effect of non-registration is that none of its contents can be proven against the opposite party.

However, every State has its own Accomodation Control Act, find any practisng Lawyer in your own state and ask him to reply the notice (utmost necessary), as per my experience most landowners offer the plea of Bonafide Necessity which is generally hard to prove. Further, as regards the capital invested by your Uncle, you may always claim the compensation against the same at current prices. But the same depends on the state where the property is situate and the law prevalent therein.

Anyways do not forget to consult a local lawyer in your area.... 


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