• Pagadi Legal Heirs

My Grandfather had taken a pagadi for a flat in mumbai .
He died in 1970 , he had 1 son and 2 daughters.
The son continued staying on.
Eventually he got the rent receipt on his name.
And finally he has sold off the house.

My question is , when my grandfather died , doesnt his children being his legal heirs , get the right to the sale proceeds when the house was sold?

How can the son and the landlord transfer the to the Son's name , without consent of the legal heirs?

Will there be a Registered agreement to what happened ?

1. Transferring of Son's name in place of my grandfather?
2. Son selling off the property recently, by himself.
Asked 8 years ago in Property Law
Religion: Hindu

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4 Answers

1) tenancy rights were transferred to son on his father demise as he was staying with his father in said flat

2) landlord does not need consent of the daughters to transfer tenancy rights in the name of legal heir residing with the deceased tenant

3) there would not be regd agreement for transfer of tenancy rights in favour of son

4) in case of sale of tenancy rights by the tenant registered agreement had to be entrusted into between landlord , tenant

Ajay Sethi
Advocate, Mumbai
99813 Answers
8147 Consultations

landlord must have insisted on NOC from other legal heirs for transfer of tenancy rights in favour of the claimant

2) Maharashtra rent control act defines tenant as

(d) in relation to any premises, when the tenant dies, whether the death occurred before or

after the commencement of this Act, any member of the tenant's family, who,-

(i) where they are let for residence, is residing, or

(ii) where they are let for education, business, trade or storage, is using the premises for

any such purpose,

with the tenant at the time of his death, or, in the absence of such member, any heir of the

deceased tenant, as may be decided, in the absence of agreement, by the court.

Ajay Sethi
Advocate, Mumbai
99813 Answers
8147 Consultations

My question is , when my grandfather died , doesnt his children being his legal heirs , get the right to the sale proceeds when the house was sold?

Owning a house in pagadi system s actually not a title to the property by any registered deed, it is an arrangement which goes on from one owner to another in an unofficial manner.

Since there is no legality attached to such transactions, no body can claim rights as descendants/legal heirs to this arrangement legally.

Pagadi type of house is also on a rental agreement only and the tenant is a tenant till the end.

How can the son and the landlord transfer the to the Son's name , without consent of the legal heirs?

Since there is no legal provisions for such acts, there is nothing illegal about it as well.

Will there be a Registered agreement to what happened ?

1. Transferring of Son's name in place of my grandfather?

An agreement with the tenant will come to an end on the death of the tenant, the heirs will have no rights in the name of tenancy rights, they can stay there for a further period of one year/5 year as per the tenancy protection rights in the event of the death of tenant, therefore the so called legal heirs cannot claim tenancy rights or rental agreement in their names or object to the new rental agreement to the son of the deceased tenant in any manner and no such objections will sustain in law.

2. Son selling off the property recently, by himself.

In pagadi system though in literal language it is called as selling of the property, legally

nobody can claim a share in it as a right in any capacity, all such things have to be settled by a meeting among the family members only.

T Kalaiselvan
Advocate, Vellore
90014 Answers
2497 Consultations

However i have another case in my family on my paternal side , where there is also a pagadi/rent system.

In this case , they have not been able to acquire the tenancy rights , and were trying to get the NOC of other legal heirs.

So why would they need the NOC to get the tenancy rights , if it is not legally binding on them ( as you explained ) ?

All such things are practical which have no approval in law.

It is a prevailing practice hence people continue to follow such practices without knowing whether knowing whether it is a legal requirement or not.

Therefore do not think that it is a legal requirement because there is no such provision i law in that regard.

Is there another Rent system apart from Pagadi ? ( not leave and license ).

Are the legal heirs entitled in this Rent system ?

The law on tenancy is common under different names.

as in the Act the tenancy is heritable for a limited period subject to the legal representatives satisfying the condition.

In section 5 of the act, the Section makes it clear that the tenancy rights are heritable only for a specified period. Under Sub-section (1) of Section 5 the tenancy rights are heritable for a period of five years and under Sub-section (2) of Section 5 the successor acquires a right to continue in possession as a tenant only for a period of one year. In fact the word used in Sub-section (2) is, the successor shall acquire a right to continue in possession as a tenant for a limited period of one year. Strictly speaking it is not a tenancy right at all. It is a right to continue in possession as a tenant for a period of one year, 15, Sub-section (1) of Section 5 defines who are the persons who are entitled to inherit this tenancy right. They are called as "successors". More important is all the successors named in Sub-section (1) of Section 5 do not inherit the tenancy rights simultaneously. They inherit the tenancy rights only in the order in which it is mentioned in the said sub-section. In other words one successor excludes the other successor. If the successor is a spouse of the deceased tenant, all other successors of the deceased tenant mentioned in the said Sub-section stands excluded in preference to the spouse of the deceased tenant But, even that successor to inherit this tenancy right should satisfy certain legal requirements. One such legal requirement is the said successor should ordinarily been living or carrying on business in the premises with the deceased tenant as a member of his family up to the date of his death, Second legal requirement is the said successor should be dependent on the deceased tenant. Therefore, for a tenancy to devolve on a successor under Sub-section (1) of Section 5 for a period of five years, such a successor firstly should be ordinarily living as a member of the family up to the date of his death and secondly be dependent on the deceased tenant.

T Kalaiselvan
Advocate, Vellore
90014 Answers
2497 Consultations

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