• Parting possession under Maharashtra Rent Act

I am co-landlord of a Cessed building in Mumbai , one of my tenant who`s shop`s rent receipt since the time he became our tenant was in the name of " Hirachand Metals " the sign board used to display the same name as on the rent receipt , since 2008 he has changed the sign board to "Global Industries Pvt Ltd" upon investigation with Registrar of Companies I have found that the original tenant is director in this Pvt Ltd firm and also he has taken an outsider as an Director, the paid up capital is Rs 1 lac, is this an act of Parting Possession without the consent of Landlord , if so can I file a suit for eviction ? secondly he pays us the rent to us by cheque drawn from "Global Industries Pvt Ltd" account , should we accept this cheque ??

Kindly guide how to proceed 

Thank you
Asked 8 years ago in Property Law
Religion: Hindu

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8 Answers

Firstly, please check as to at what address 'Global Industries Pvt Ltd' is registered also please check what is the status of 'Hirachand Metals'. Also see what is the difference in the work model of HM and GI.

This can not be termed as parting possession since original tenant is that person only who was the original tenant, it does not matter if he has changed the name and scope of the business, this will be ascertained by the court after applying the 'lifting of the veil theory'; but still you will have a fairly good chance to win the case if you file the eviction suit since the use has been changed without your permission.

regards

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

1) you can file suit for eviction

2) tenancy was in name of Hirachand metals . he has converted it into private linted company and inducted new person as director

3) if there is voluntary transfer by the company to a newly incorporated company then in that case one has to plead and prove that all the members of the old firm continued in the new firm and it is essentially the same . only in such cases would it not amount to sub letting

Ajay Sethi
Advocate, Mumbai
100088 Answers
8174 Consultations

No then it can not be.

File a notice for eviction followed by an eviction suit.

Regards

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

If directors are the same and nature of business is same then it would not amount to subletting

Ajay Sethi
Advocate, Mumbai
100088 Answers
8174 Consultations

Dear Client,

If the premises was given on rent in the name of firm , Hirachand Metals , purpose for which it will be used.

Than change in the firm name including outsider as director, at some reference amount to parting possession / sub letting and if purpose for use of premises also changed than more stronger reason for eviction .

Stop receiving payment (otherwise deemed acceptance of sub tenancy ) and issue eviction notice, failure to complied with , file eviction suit on above ground.

And if they don`t insist to pay rent on ur denial than for few months than another ground will develop.

Yogendra Singh Rajawat
Advocate, Jaipur
23086 Answers
31 Consultations

Hi, if the lease deed was in the name of the company then the adding of director will not be a issue , as any liability will me of the company

Hemant Chaudhary
Advocate, Gurgaon
4632 Answers
67 Consultations

It becomes the duty of the tenant to notify the change in his status as a tenant to the landlord.

You can issue a notice seeking his explanation about this and inform him that if his explanation is not satisfactory and on verification if it is found that he has sublet the rented premise, he is liable to vacate the premise for violating the conditions of agreement to not to sublet the premise to a third party.

Depending on his response you may contemplate to initiate any further legal course of action.

T Kalaiselvan
Advocate, Vellore
90291 Answers
2513 Consultations

Since Global Industries Pvt Ltd is an separate entity and formed by the virtue of share holders , can it be allowed to conduct business in the same premises without consent of Landlord ?

Actually the rental agreement expires after the stipulated period of agreement if not renewed or on death of the tenant or the landlord and the tenant or his legal heirs or liable to vacate the premises within one year of any such incident presuming to operate the tenancy protection laws.

Whereas you allowed the different company to operate in the said premises and the same is owned by a person other than the original tenant, hence you should have taken an action in this regard earlier itself, even now you can issue notice to the occupier to vacate the illegally occupied premise.

At the same time if he is not responding or coming to an understanding then you may initiate legal process to evict him, if he agrees for fresh conditions, then you may enter into a fresh agreement with the new tenant.

T Kalaiselvan
Advocate, Vellore
90291 Answers
2513 Consultations

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