• Landlord not accepting rent in any form

We have a pagdi shop, the loft was removed way back in 2013 due to business shutdown and no business was carried out until november 2016. We approached the BMC to see our share of assesment tax paid by the landlord. We were quite amazed to see that the landlord has been collecting 4x the amount from us and paying only .25 in a rupee to the officials. I got irked and talked to the landlord that why collecting 4x amount. Landlord said I want a official copy that the loft have been removed and will charge us according. We agreed, but the shops next to us have 2x rent and the landlord wants 3x from us. We started a vegetable trading business in november 2016, in that also the landlord has issues stating that you can't do any other business other than agreed business. Which pagdi system law says so? The landlord could not do much about it as he use the click pics in front of our shop and complain it to the BMC. We tried sending her the rent through payorder, cheque and we've sent notices as well that why charging 3x rather than collect only 2x the amount. Landlord rejected every payment option and dint answered the legal notice properly. What should we do to clear our rent till date and why we can't do any other business as well in a pagdi system shop?
Asked 3 years ago in Property Law
Religion: Muslim

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13 Answers

There is no bar to doing any other business in Pagdi shop

2) if landlord refuses to accept rent deposit rent in court

Ajay Sethi
Advocate, Mumbai
84937 Answers
5618 Consultations

5.0 on 5.0

you cannot start any business in partnership if tenancy is in your single name

2)you can act as franchisee if you so desire

3) you have to deposit rent amount paid by you as per tenancy agreement to landlord in court

Ajay Sethi
Advocate, Mumbai
84937 Answers
5618 Consultations

5.0 on 5.0

1. If the landlord is not accepting rent form you then you cans send the rent to the landlord through money order.

2. if again it is not accepting then you can make online transfer of money to his bank account.

3. If this is also not possible then apply before the Rent Controller whereby you will be allowed to deposit rent therein as long as you want.

4. Refusal to accept rent by the landlord is no hindrance to carry out any lawful business from the tenanted premises as long as you are not evicted from the premises through the due proceeds of law like an eviction suit.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
366 Consultations

5.0 on 5.0

1) You can pay your rent in the court and take receipts from court.

2) You have inform court the current situation and tell that the discrepancy amount has been charged by the landlord and all issues related business as well to get in pagdi system. In pagdi system your are also tenant owner.

3) 1. Whether under Section 19-A of the Act it is necessary for the tenant every time before making a deposit of rent in Court to tender the same to the landlord and to have his refusal or once the landlord has refused the tender of rent, then for every subsequent deposit in Court the tenant will not be required to first tender the rent to the landlord and have it refused.

Procedure:

File an application before the Rent Controller seeking permission to deposit the rent in view of the refusal by your landlord to accept the same. Further, you can make an application for depositing rent in the court, and the same shall be decided after reply is filed by the other side.

Ganesh Kadam
Advocate, Pune
12219 Answers
165 Consultations

4.9 on 5.0

Hello sir , you can file a civil suit for specific performance and can deposit the rent in court ..you can carry out any business as far it is in accordance with the BMC laws

Hemant Chaudhary
Advocate, Gurgaon
4617 Answers
55 Consultations

4.9 on 5.0

Hello

You can file fixing of standard rent application in the court and deposit the rent monthly or quartely or yearly.

Vikas Musale
Advocate, Pune
10 Answers
1 Consultation

4.0 on 5.0

Dear Sir,

You can file an application for depositing rent before Rent controller as below. Or File a suit for permanent injunction against the land lord and deposit the rent in court.

======================================================================================

THE MAHARASHTRA RENT CONTROL ACT, 1999

CHAPTER II

PROVISIONS REGARDING FIXATION OF STANDARD

RENT AND PERMITTED INCREASES

8. Court may fix standard rent and permitted Increases In certain cases.

(1) Subject to the provisions of section 9 in any of the following cases, the court may,

upon an application made to it for the purpose, or in any suit or proceedings, fix the

standard rent at such amount as, having regard to the provisions of this Act and the

circumstances of the case, the court deems just,-

(a) where the court is satisfied that there is no sufficient evidence to ascertain the rent at

which the premises were let in any one of the cases mentioned in paragraphs (i) and (ii)

of sub-clause (b) of clause (14) of section 7; or

(b) where by reasons of the premises having been let at one time as a whole or in parts

and at another time, in parts or as a whole, or for any other reasons; or

(c) where any premises have been or are let rent-free or, at a nominal rent; or for some

consideration in addition to rent; or

(d) where there is any dispute between the landlord and the tenant regarding the amount

of standard rent.

(2) If there is any dispute between the landlord and the tenant regarding the amount of

permitted increase, the court may determine such amount.

(3) If any application for fixing the standard rent or for determining the permitted

increase is made by a tenant,-

(a) the court shall forthwith specify the amount of rent, or permitted increase which are to

be deposited in court by the tenant, and make an order directing the tenant to deposit such

amount in court or, at the option of the tenant, make an order to pay to the landlord such

amount thereof as the court may specify pending the final decision of the application. A

copy of the order shall be served upon the landlord;

(b) out of any amount deposited in the court under clause (a), the court may make an

order for payment of such reasonable sum to the landlord towards payment of the rent or

increases due to him as it thinks fit;

(c) if the tenant fails to deposit such amount or, as the case may be, to pay such amount

thereof to the landlord, his application shall be dismissed.

(4) (a) Where at any stage of a suit for recovery of rent, whether with or without a

claim for possession, of the premises, the court is satisfied that the rent is excessive and

standard rent should be fixed, the court may, and in any other case, if it appears to the

court that it is just and proper to make such an order, the court may make an order

directing the tenant to deposit in court forthwith such amount of the rent as the court

considers to be reasonable due to the landlord, or at the option of the tenant, an order

directing him to pay to the landlord such amount thereof as the court may specify.

(b) The court may further make an order directing the tenant to deposit in court

periodically such amount as it considers proper as interim standard rent, or at the option

of the tenant, an order to pay to the landlord, such amount thereof as the court may

specify, during the pendency of the suit;

(c) The court may also direct that if the tenant fails to comply with any order made as

aforesaid, within such time as may be allowed by it, he shall not be entitled to appear in

or defend the suit except with leave of the court, which leave may be granted subject to

such terms and conditions as the court may specify.

(5) No appeal shall lie from any order of the court under sub-sections (3) and (4).

(6) An application under this section may be made jointly by all or any of the tenants

interested in respect of the premises situated in the same building.

9. No applications for standard rent In certain circumstances.

No court shall, upon an application or in any suit or proceeding, fix the standard rent of

any premises under section 8, or entertain any plea that the rent or increases are

excessive, if the standard rent or the permitted increase in respect of the same premises

have been duly fixed by a competent court on the merits of the case, without any fraud or

collusion or an error of' the facts, and there has been no structural alterations or change in

the amenities or in respect of any other factors which are relevant to the fixation of the

standard rent, or change in such increases, thereafter in the premises.

=====================================================================================

If your landlord does not accept the rent, you can deposit the rent to the rent commission favouring your landlord. By doing this, you are ensuring that your landlord cannot evict you on grounds of non-payment of rent.

Further, you should also keep in mind that the Supreme Court has ruled that if a landlord refuses to accept the rent, the tenant has to mandatorily deposit it with the Rent Controller (court) as otherwise the latter would be liable for eviction.

=======================================================================================

Kishan Dutt Kalaskar
Advocate, Bangalore
6017 Answers
331 Consultations

4.8 on 5.0

Your question: What should we do to clear our rent till date and why we can't do any other business as well in a pagdi system shop?

Answer: You can do any kind of business in pagdi system;

Your question:What is the procedure to deposit the rent in court?

Answer: If your landlord does not accept the rent, you can deposit the rent to the rent commission favouring your landlord. By doing this, you are ensuring that your landlord cannot evict you on grounds of non-payment of rent.

The Supreme Court has recently held that if a landlord refuses to accept the rent, the tenant has to mandatorily deposit the rent with the Rent Controller (i.e. the court) as otherwise the latter would be liable for eviction.

The Apex court said it was mandatory for a tenant to deposit the rent or rental arrears whenever the landlord, who is not in good terms, refuses to accept the rent. In other words, the tenant cannot merely avoid paying the rent by saying the landlord had refused to accept the same.

Procedure:

1. Engage a local lawyer;

2. File an application before the Rent Controller seeking permission to deposit the rent in view of the refusal by your landlord to accept the same;

3. Further, you can make an application for depositing rent in the court, and the same shall be decided after reply is filed by the other side.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

If the landlord is not accepting the payment of rent in any manner, then you can approach the rent controller court and seek its permission to deposit the same in the court.

On the basis of the documentary evidences for the steps you have taken to pay the rent, you may seek the court to permit you to deposit the same with the court as court deposit by filing a case in this regard before the Rent controller court.

.;

T Kalaiselvan
Advocate, Vellore
75050 Answers
1263 Consultations

5.0 on 5.0

You can file a case before the concerned court seeking to permit you to deposit the rent before the said court.

You Can deposit the amount as per rental agreement and not the one what he is demanding unofficially.

You may not be allowed to run partnership firm if your rental agreement was for the proprietorship company alone.

T Kalaiselvan
Advocate, Vellore
75050 Answers
1263 Consultations

5.0 on 5.0

Dear Client,

If LL is refusing to accept rent in all forms, and regarding this notice is also sent, than your default is over. If any time LL took this objection of non paying of rent, you have sufficient evidence to prove your bonafied.

Open one account, and deposit rent due in that account every month and due rent till now.

Approaching court will cost money, no need unless LL herself knock door of court.

Yogendra Singh Rajawat
Advocate, Jaipur
21452 Answers
31 Consultations

4.4 on 5.0

1. The BMC does assessment for every property on basis of its area which also includes loft area.

2. If you removed the loft and did not notify the BMC to do a reassessment, then the property tax would be caclulated on basis of old area which would include loft area.

3. So if that is the case then your landlord may be correct in charging you extra rent by including the loft area as that would still reflect in BMC records unless you notify it to reassess the property tax for reduced area, that is, after deducting loft area.

4. If your tenancy agreement contains any specific condition as to the nature of business which you can operate from the shop, then you can't do any other business without prior permission of landlord and you will have to go as per contract.

5. However if your tenancy agreement says that the shop is let to you for commercial purpose, without specifying any particular business, then you can conduct any legitimate business from the shop without requiring to take prior permission of landlord.

6. If you have the proofs of the rent payments to the landlord, however it came to be refused by landlord, then you need not to do anything further. Let the landlord file a suit against you. At that time you can submit to court how you made attempts to pay rent to landlord but it was refused. Also produce all the documentary proofs you have for rent payments. If you show willingness to clear the rent arrears to court then you simply have to deposit the rent in Court.

7. If the loft area is still in BMC records then you have to pay old rent and not the reduced rent. Please remember that many times even if the shop area is same, the BMC assessment differs and so the rent of all such shops is not equal.

8. You can also file a suit for deposit of rent if you wish. However if you wish to avoid that then you can simply open a bank account with the landlord as nominee and deposit all rent arrears in such account and inform about the same to your landlord by registered letter. Until your landlord resumes rent collection from you, you can deposit the monthly rent in this account. When landlord files any suit against you for non payment of rent, you can always show the credits lying in the bank account to the court alongwith the registered letter by which the landlord was duly informed about rent deposit. This will itself defeat the landlord's case. So don't worry.

Yusuf Rampurawala
Advocate, Mumbai
6565 Answers
60 Consultations

5.0 on 5.0

You can open an account in post office or bank and deposit the same till the landlord don't accept it. You can intimate the said fact to landlord. This arrangement will help you in Court for future litigation if any.

Prashant Nayak
Advocate, Mumbai
24936 Answers
58 Consultations

4.4 on 5.0

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