• Consequences of unregistered agreement of assignment of leasehold right

I am a lessor, my lessee "X" had lawfully assigned is leasehold right to "Y" which is permissible under the terms of lease agreement. Thenafter "Y" assigned lease to "Z" by an unstamped and unregistered agreement in 1983. 

1) Can "Z" further assigned the leasehold right?. Considering the fact that the right "Z" has got through a document which is unregistered and unstamped agreement.

2) Can "Z" now register the 1983's unstamp and unregister agreement of assignment?

3) Though the possession of the leasehold property is with "Z" since 1983, until 1996 the rent was paid by "Y" and then after I.e arrears of rent from 1997 to till date is paid by "Z". 

 a). "Z" is not my contractual tenant as the right 
 thruogh an unstamped and unregistered 
 document may not be recognized by Law. Can it 
 be say that "z" is my statutory tenant and the 
 relation between us is governed by provisions 
 of Rent Acts, instead of TP Act.

 b) "Z" want to make money by assigning leasehold 
 right, can he do that. 

 c) Can any court of Law allow "Z" and "Y" to 
 register the same unregistered agreement of 
 assignment of 1983?
Asked 6 years ago in Property Law
Religion: Hindu

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7 Answers

1) Z cannot further assign lease hold interest 

 

2) Z cannot register agreement of 1983 after lapse of 25 years 

3) Z cannot make any money by creating third party rights on property 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

1. The right of sub lease is permissible as long as the lessor gives such consent in writing. To give such consent in writing the lessor need not get the consent registered on payment of stamp duty.

2. However deed of assignment of lease requires registration and it can be done even now with retrospective effect from 1983.

3. Payment of rent has nothing to do with vapidity of deed of assignment. 

Devajyoti Barman
Advocate, Kolkata
23653 Answers
537 Consultations

1. No he can't further assign.

2.No you can object the registration.

3.In this case you need to file civil suit with injunction.

No unstamped instruments are bad in law.

As I said the same is illegal and Z can't do it. Approach civil court asap

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

Dar Client,

Performance of unregistered deed is permissible. but it has to be duly stamped so it`s terms are not legally binding.

Yes, by paying penalty but both party should agree not unilaterally by Z. Lease with Z shall be invalid subletting if not permitted to Y to further sub let.

It will govern by TP act and due to unregistered lease deed and shall be terminable by giving 15 days notice, hope it`s not a lease of immovable property for agricultural or manufacturing purposes.

NO.

Yes, If they both submit lease for registration by paying penalty.

Yogendra Singh Rajawat
Advocate, Jaipur
23079 Answers
31 Consultations

Z can at at the highest pay the deficit stamp duty with penalty on the assignment deed between him and Y

However they cannot get the document registered anyway

because as per s.23 read with s.25 of registration act, the maximum period within which a document can be registered is 8 months from date of signing

in this case the above period has already lapsed

so Z and Y will have to execute a fresh assignment deed and get it stamped and registered

you have already accepted rent from Z, so in a way you have accepted him as your lessee/tenant and thus Z is protected under rent act 

also Z is already in possession since 1983 and you did not take any steps for his eviction by filing an eviction suit

Yusuf Rampurawala
Advocate, Mumbai
7899 Answers
79 Consultations

1.  If the conditions of lease agreement do not permit the unregistered leas agreement then the said agreement by Z may not be maintainable especially when there is a dispute in this regard in court of law.

 

2. It cannot register at this stage on the basis of 1983 agreement, registration can be done on the basis of fresh execution of the agreement only.

3. a)  It cannot be said to be proper or legally valid to call Z as a statutory tenant since the agreement is not registered and may not be maintainable in court of law, however if possession proved before the court and the court passes an order to pay the stamp duty for registration, then Z may be considered as a legally valid lessee.

 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

  1. As per the information mentioned in the present query, makes it clear that there has been a subsequent rights of tenancy to the third person in it.
  2. As per law of rent control act, a tenant cannot create a subsequent tenancy in favour of a third person as it is not a valid contact.
  3. And now that unregistered agreement cannot be registered as there is a limitation period of only 4 months to get it registered.
  4. But, herein your case, you have been accepting rent from the third party which makes it an implied contract accepted by you.
  5. But, surely he can’t now create a one more subsequent tenancy right to some one else.

I am unable to see your contact details so that can contact you.

So, would request you to have my number from Kaanoon and book a phone consultation with me, so that I can advice you more precisely and in detail to solve all your query as there is a way to tackle the problem which you have mentioned in the comments of ratings.

 

Sanjay Baniwal
Advocate, South Delhi
5477 Answers
13 Consultations

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