• Rental commercial property

We have taken a house at rent for office purpose in Bangalore on march 2013 with a agreement for 5 years & increase in rent of 7.5% after completion of every 11 months . It is also mentioned in the agreement that we are using this for office purpose . The agreement is not registered or notary is done .But in the agreement we have also taken the following thing  
 ( The said lease is to come into force from (Mar 1st , 2013) and shall be in force for a periodof (11 months) from the date of commencement unless sooner terminated as provided inclause 19(b) below and / or renewable after mutual negotiations and written agreement by
both parties. The current agreement is for a period of 5 yrs from the date above.after every
11 months, the monthly rent shall undergo revision and will increase by 7.5 % for the next
11 months. )In the agreement it is also mentioned that any of the party can terminate the agreement with 4 months notice before 5 years .

It was taken for a rent of 40000rs & after 2 increments Current rent is 46000rs  which is always paid in time . Now the owner is asking to increase it to 110000 rs or vacate within 4 months . I have invested heavily on interiors & if i vacate now i will be in loss of around 10 lakh ( excluding goodwill & client loss)  . Knowing this he is demanding for rental increase .

So please guide me how to go about this . As i understand since agreement is not registered it is a fault on both side & whose responsibility will be to pay the stamp duty charges for registration of agreement ( tenant or owner ) .
Can i go for rent control board & whether they resolve the commercial property rental issues . 
KIndly give  me the possible solutions so that i can continue with the same property atleast for next 3 years .
Asked 3 years ago in Property Law from Bangalore, Karnataka
1) the agreement for taking premises  for period of 5 years is required to be duly stamped and registered 

2)in your case the agreement is not registered . there is generally a clause in agreement that stamp duty and registration charges would be divided equally between the parties 

3) under terms of agreement rentals are required to be increased by only 7.5%after every 11 months 

4)the flat owner wants more than 100%increase in rentals . 

5) if you refuse to pay he will terminate the agreement by issue of 4 months notice .

6) let the flat owner file suit for eviction . 

7) if you contest it will take more than 3 years to be disposed of . ie balance period of your agreement . 

8) you can then file consent terms for vacating premises .

Ajay Sethi
Advocate, Mumbai
44164 Answers
2561 Consultations

5.0 on 5.0

1. Do not succumb to his presure tactics.

2. Since you have heavily invested in the property you should not have made the agreement for mere 11 months.

3. Even if you have done so do not agree to quit or vacate the same.

4. To get the tenated premises vacated ot takes time and enerjy and if you do not vacate the same suit fore viction reamins the pnly option fot he landlord.

5. try to drag the suit and as long as the suit remains pending you can enjoy the property.
Devajyoti Barman
Advocate, Kolkata
12496 Answers
159 Consultations

5.0 on 5.0

Hi, as per law the agreement entered  more than 11 months is compulsory registered documents and without registration it is not valid in the eye of law.

2. You have no option either to vacate the premises or agreeing to pay higher rent.

3.if you go for court most probably you may get 2 years times.

4. For payments of stamp duty under normal circumstances  tenant has to bear the expense.
Pradeep Bharathipura
Advocate, Bangalore
4527 Answers
202 Consultations

4.3 on 5.0

1. When you took the premises on rent for 5 years you should not have made an agreement for 11 months. Furthermore, you ought to have registered it to protect your rights.

2. The increase in the rental has to be in consonance with what is provided in the agreement. The owner cannot seek to increase the rent over and above 7.5%. An agreement once entered into ranks sacrosanct. 

3. Refuse to accede to the demand of the owner.

4. The owner will file a case for your eviction in the court, which you can contest fittingly.
Ashish Davessar
Advocate, Jaipur
22958 Answers
631 Consultations

5.0 on 5.0

1. The Agreement is faulty,

2. In one place it is mentioned that the agreement shall be in force for a periodof (11 months) and in other place it is mentioned that  you have taken the house "with a agreement for 5 years",

3. Since it is for 5 years, the agreement was required to be registered for acquiring legal validity,

4. Normally the tenant pays for the stamp duty while registering tenancy/lease agreement,

5. Since there is no legally valid agreement for giving you the right to stay therein, you have no other option but to vacate the said house,

6. You can contest the eviction suit, if filed by the land owner, which you can drag for 2/3 years before loosing the case.
Krishna Kishore Ganguly
Advocate, Kolkata
18091 Answers
438 Consultations

5.0 on 5.0

1. There is no other option left before the land lord to evict you from the premise other than filing the eviction suit,

2. You can contest the eviction suit filed by him but what merit will you have to contest his eviction suit when you have no valid tenancy/lease agreement registered by you. The suit can be dragged not on merit but on technical grounds by taking repeated adjournments etc.,

3. Engage a local lawyer who will keep taking repeated adjournments on varioud grounds, manage the court officer to give long dates etc.,

4. After the judgement is passed, the landlord will file execution petition based on the said judgement and you will be evicted with the help of police,

5. Rent Control Board has no authority to pass judgement on any harassment. It is the jurisdiction of the Court,

6. Since you do not have any valid tenancy agreement, you can be asked to vacate the premises in which case, the question of undue increment amount will not arise. However, if he has asked for the said increase in writing, you can contest his eviction suit on the ground of undue increase.
Krishna Kishore Ganguly
Advocate, Kolkata
18091 Answers
438 Consultations

5.0 on 5.0

1)landlord can only file eviction suit . he cannot forcibly evict you without due process of law 

2)eviction suits some times take 5 years to be disposed of .take time for filing reply . evidence will have to be led .judicial process takes time 

3)if judgement of eviction ids filed file appeal against said judgement . till appeal is pending no eviction proceedings would lie 

4) it is the court which will decide issue of eviction . rent control board has no role to play 

5) contact a local lawyer for further guidance . your agreement must be containing a clause that in event of failure to pay you will have to pay X amount . in the vent you lose case you may be directed to pay said amount for failure to vacate inspite of termination notice
Ajay Sethi
Advocate, Mumbai
44164 Answers
2561 Consultations

5.0 on 5.0

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