• Tenancy rights

My father has been a tenant in a shop space of about 250 sqft. under the pagdi rent system for his business since 1963. We currently pay Rs750/- monthly to the landlord which has been increased to this present amount voluntarily by my father over all these 55 years. 

We have all the relevant papers and documents and rent receipts to prove it. 

My father recently retired due to old age and I sit in his place in the shop for the last 6 months to carry on the business. 

My questions are: 
1) Can my landlord after my father's demise evict me from the shop and not recognise me as the heir?? 
(I am the only son of my parents and there is no dispute about succession).
2) Several people around have told me to buy up the shop space (gala) from the landlord by paying him some amount which they opine wil be beneficial to me. Not doing so can endanger my chances and I can lose my transfer of tenancy rights if the landlord refuses to recognise me. Is what these people tell me correct??
3) In case of redevelopment of the building will I automatically get ownership of the premises. And if so shall I rightfully get my new ownership premises in the same place as the one now?? That will I have a say in where the new premises be located within the redeveloped building.
Asked 2 years ago in Property Law
Religion: Hindu

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12 Answers

1. The tenancy on the death of your father is i inherited by his legal heirs which include you and his other children,which are none in your case. So the landlord can not evict you merely for the death of your father.

2. If your are willing then you can always purchase this property. There is no harm in it. Otherwise ask the landlord to issue rent receipt in your name and once that is done there is nothing to worry anymore.

3. On redevelopment you will get only the tenancy rights . A tenant can never become a owner unless he purchases any part of the tenancy or full of it.

Devajyoti Barman
Advocate, Kolkata
21685 Answers
311 Consultations

5.0 on 5.0

On father demise you would be a deemed tenant

2) if landlord refuses to transfer tenancy in your name take legal proceedings against the landlord

3) it is always advisable to purchase the tenanted premises

4) in case of redevelopment you should be entitled to ownership rights of the shop

Ajay Sethi
Advocate, Mumbai
79342 Answers
4746 Consultations

5.0 on 5.0

Please send all the docs asap. Also u r right of tenancy always remains but some conditions apply.but if u delay u may loose all.....

Vijay Kumar
Advocate, Mumbai
26 Answers

4.0 on 5.0

1) No, he can't evict you directly after your father all legal heirs become owner, because pagdi system owner are partly owner of the property.

2) After your father all his legal heirs become owner.

3) In case of redevelopment of old properties in Mumbai, there’s reference to pagdi properties. The consideration paid to a landlord as a fine, premium or consideration known as pagdi has been legalised by Section 56 of Rent Control Act, 1999.

It is now also lawful for a tenant to receive any amount in consideration of the relinquishment or transfer of his tenancy. Incidentally, in the Rent Act, 1974 giving or receiving pagdi in cash was held ‘illegal’ hence there was extensive use of black money. Now too, in cities like Mumbai, for the transfer of tenancy, 33 per cent of the amount in transaction is paid in cash to the landlord to effect the transfer of tenancy or assignment.

However, when there is redevelopment of the said property, the landlord usually makes a deal with the developer and stakes his claim of his 33 per cent and accordingly takes profit out of the property permanently. Those who are in accommodation or in possession of the said property after redevelopment become the sole owners of the said premises.

Ganesh Kadam
Advocate, Pune
11668 Answers
109 Consultations

4.9 on 5.0

In regard to the first question, no he can’t evict you as per law.

In regard to second question, yes you can ask him for the good amount as per circle rate if he doesn’t agree then remain there as tenant no one can evict you if continue to pay rent also.

In regard to third question, no you can never get the ownership in fact no next generation after you can even claim there as tenant right.

You can consult me through Kanoon if like my answer, and want to know the further procedure for it.

Sanjay Baniwal
Advocate, South Delhi
5464 Answers
13 Consultations

5.0 on 5.0

1)No the land lord cannot evict you from the shop in case of demise of your father you will inherit the tenancy.

2)No he cannot refuse to recognise you as tenant as you can move to court also he cannot evict you know directly without eviction suit in which he won't succeed as tenacy transfer to legal heir is regonised under law.

3) buying is a good option as he is aware of fact he cannot evict you even on redevelopment he has to pay some amount so you can get a good deal.

4) on redevelopment you will get the tenancy not ownership or you can claim amount on redevelopment or ownership any part of premises to give up your right as tenant.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
111 Consultations

5.0 on 5.0

Landlord needs tenant consent for redevelopment

2) to obtain tenant consent landlord offers them ownership rights for tenanted premises

3) you can bargain with the landlord to allot you premises in the same place

Ajay Sethi
Advocate, Mumbai
79342 Answers
4746 Consultations

5.0 on 5.0

1) you will be a tenant in redevelopment for ownership you need to purchase the place or at time of redevelopment ask for share ofownership for giving up tenancy rights from the land lord.

2) the land lord requires consent and NOC from tenant for redevelopment so you can get a share as bargain deal of redevelopment.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
111 Consultations

5.0 on 5.0

The state government is aware that many tenants occupying rent-controlled units belong to the lower- or middle-income groups. Keeping this in mind, the government intends amending the Rent Act to:

Exclude commercial establishments occupying more than 46.5 sq m (500 sq ft) and residential tenants occupying more than 80 sq m (862 sq ft) from protection under the Rent Act. Such tenants will continue to occupy the rented premises so long as they pay market rent (as per the ready reckoner rates.

1. He cannot evict you from the shop if you had been doing the business with your father as his son and continue to the same business in the premises after his death.

2. You can enter into a fresh rental agreement with the landlord on the renewed terms for rent and continue to remain in the same premises if you apprehend any danger like how others opined about it.

3. You are right that the builders/developers may obtain your signature/consent and enter into an agreement with you in the event of redevelopment

T Kalaiselvan
Advocate, Vellore
69350 Answers
929 Consultations

5.0 on 5.0

1. For the present you are protected under Maharashtra Rent control act.

2. There are three parties involved when redevelopment of the property is considered – owner, tenant and builder/developer. As the landlord holds the records of the property, he possesses complete ownership to sell the property. Once the property is redeveloped by the builders/developers, the landlord takes the profit out of the property at once and permanently. Once the profits are withdrawn, the landlord has no authority over the property. The tenants who are in possession of the said flat/property after the redevelopment becomes the sole owner of the property.

Very recently state government proposed to make amendments to Maharashtra Rent Control Act, 1999 – aimed at residential and commercial tenants who reside on properties above 847 sqft and 547 sqft where rent across several Mumbai buildings are controlled by the Pagdi system. This proposal was also put forth in a bid to phase out a “first generation” rent control system introduced in 1947 because even today in South Mumbai’s several rent controlled flats, tenants often pay as little as Rs 300-Rs 500 as a rent even when the market rate is as high as Rs 20,000-Rs 60,000.

If the amendment is passed and implemented, then tenants occupying the properties above 847 sqft and 547 sqft will have to pay rents based on the current market rates which is more than 200 times the rents that they are paying currently.

T Kalaiselvan
Advocate, Vellore
69350 Answers
929 Consultations

5.0 on 5.0

1) After redevelopment you are entitled to become a owner of the shop, however you have to pay a price to owner and fix that price with owner and developer.

2) you can stick for same placement of the shop currently where it is. While making agreement with them insist for same place and mostly they will give it.

Ganesh Kadam
Advocate, Pune
11668 Answers
109 Consultations

4.9 on 5.0

He can't evict you and after the death you will be the legal heir. You can't buy tenanted property but yes just can have a deed of assignment in your favour or tenancy right in your favour. Yes if you have tenancy rights in your favour then you will get ownership after redevlopment

Prashant Nayak
Advocate, Mumbai
22447 Answers
49 Consultations

4.4 on 5.0

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