Once you have agreed in writing to revamping toilets , staircase etc it is binding upon you
2) you can insist on arrears of rent
3) since bank has agreed to revised rent it is in your interest to carry on renovation
4) bank would renew the lease
Banking tenant lease deed expired 1 year ago. Renewal letter issued after 1 year with condition
I had rented a commercial property to a bank . The bank has occupied my premises for 22 years and had renewed it twice for 10 years. The lease had expired on april 2018. I had consistently reminded by letters to renew the lease deed or to vacate the premises & the bank also relied in june 2018 saying they will vacate my premises in 6 months and to bear with them. But after six months, they did not vacate and asked me to submit my proposal for renewal with revised rent. I had filled up their form with revised rent & the bank issued a letter in april 2019 approving the rent and for 5 more years renewal retrospective from previous lease expiry date ( april 2018) , But they have asked me to rebuild toilets, staircase and do a lot of newly proposed revampings and then they will register the deed and effect the rent. I had agreed principally to those revamings by a letter , but refused to do them before registration of lease deed as i do not have a valid running rental lease with the bank. Also i am insisting that the arrears rent due based on the new revised rate paid to me before i do the revampings. I am in a need to know if my request is legal , as the rent lease has expired before 1 year and now the bank has given a letter to first complete the renovations to register the lease and to pay new rent. Thankyou for your advise in advance
Asked 6 years ago in Property Law
Religion: Hindu
11 Answers
Sir, I had agreed to do the revamping only after the bank registers the lease deed & after effecting the new rent as the matter is already delayed for one year & i will not have a commitment otherwise . Since the same bank has already given a letter in the past saying they will vacate in June 2018 and then had come up with this new proposal to renew now, I am insisting that they first register the lease deed with the agreed conditions, so i can start the revamping work.
Asked 6 years ago
no one can take back step once the agreement is executed,
it's your mutual understanding with the bank to complete the renovations now or later,
if the bank had issued you a written letter to first complete the renovation and they will do the lease agreement after that, then you can proceed and claim damages and arear rent from them if they denied executing the agreement,
in the meantime send them a notice (not legal) to make payment of outstanding rent (increased),
1. In this scenario your only remedy is to file a petition for eviction against the tenant before the Rent Controller on the ground that you require the premises for your bona fide personal use.
2. The demands of bank are illegal and illegitimate.
Then you are justified in insisting that lease deed be registered before you carry on any renovations on the property
Yes it's a valid request as it has to be registered first. You can file a eviction suit if they are not agrreing to register the same.
See it is on settlement between parties mutually if you want renovate and want that bank should continue you can cooperate with them and also your request is legal. If you don't want them to continue can give them a notice of eviction and if on notice they fail you have to file a suit of eviction though i would advise to settle with bank and continue the lease if it is profitable.
Yes your request is valid you can ask bank to renew the lease first they can put a clause of revamping in it and pay your arrears,
Yes, you can very well insist on signing of the new rental agreement before undertaking renovation work. The old lease agreement had expired, and both you and the bank have since agreed upon a fresh set of terms, including revised rent. For its comfort, let the bank state in the new agreement that you shall undertake the additional construction/renovation work immediately upon signing of the new lease and complete the work within the next three/four months, failing which the bank shall be at liberty to stop paying the enhanced rental portion.
If you are not willing to accept the bank's proposal in this respect you may refuse to accept their proposal and ask them to vacate the premises immediately.
They cannot force you to do as per their desire, when you object and stand against them they will come down and agree for your proposal
There is nothing wrong in your demand, however you can still be flexible especially if the bank has assured you to keep up their promise.
- You being the property owner has the only right to decide whether you want them now or not after the expiry of the lease deed.
- If they have good intention then why they have not been putting everything in the lease deed out of which something more beneficial to you and some to them and then get it registered.
- Irrespective of the fact that the lease deed has already expired, you can file a suit for vacation and recovery of rent arrears before the court of law.
