• Landlord not allowing us to sell the shop (pagdi)

Landlord is not allowing us to sell the pagdi shop, the 1st buyer we got and we were done with the sale amount. As we approached the landlord for the formalities, she had problems with the buyer's business stating that the buyer would not maintain the shop in a good condition. I think this was not the original reason as the buyer had a lot of police influence and BMC as well. So the deal got cancelled and buyer walked away. The 2nd buyer is still in the deal but the landlord states though the business requires BMC and police clearances, but still we dont want to get into any trouble. Its a legit business and the buyer has all the permissions). Now when I called the landlord as to when I can come to fix a meet with the buyer, the landlord states we dont want that buyer in our shop only because the business is the sale of fire crackers and it may create some problem, police and BMC also can question. Then I asked what to do in such a scenario when you are not letting us to sell the property, I also asked give me in writing as to what kind of businesses are not allowed in this shop. The landlord replied dont teach me law, should I write and give it to you that you cannot legally sell also. What kind of harassment is it and should we sell the shop?
Asked 6 years ago in Property Law
Religion: Muslim

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13 Answers

Getting license to sell crackers is buyer problem, why you bothering about Landlord. Sell it than let her face and question the buyer.

 

Yogendra Singh Rajawat
Advocate, Jaipur
23079 Answers
31 Consultations

you need landlord consent to sell the shop 

 

2) if landlord is declining to grant you permission for sale of shop you can surrender Your tenancy rights if landlord is willing to pay you around 70 per cent of market price of the shop 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

Straight forward ask to landlord how much more commission she wants as normal she 30% hike from original your purchase price and not on current selling price. 

 

If you fix one lump sum price with her she won't deny any buyer in the future. 

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

You need to approach the court that he is not allowing you to sell the same through frivolous reasons but you will require the consent of landlord

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

You don’t have to pay her 50 per cent of sale consideration 

 

2) if shop is not used and remains closed it can be ground for eviction 

 

3) if you had sent notices to accept rent and she refuses to do so you can always rely upon money orders, letters sent to landlord in case she filed eviction suit 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

Let her not accept, you have offered, enough, you are not at default. You sell the property, rest buyer will tackle or through POA with consideration. 

Shop should not be closed, hence can file suit to recover.

Yogendra Singh Rajawat
Advocate, Jaipur
23079 Answers
31 Consultations

You should contact to some local lawyer as there are different rules and regulations to sell property in different states.

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

You cannot put pressure on the landlord to agree for selling the pagdi system property.

Without the landlord agreeing for the sale of the shop you may not be able to sell the shop.

Remember even though it is pagdi system property, you are still a tenant in the property and not the owner.

You require landlord's mercy to sell the property to a third person without which the new buyer cannot be recognised a a legal tenant in the pagdi system because the tenancy rights will not be transferred to his name by the landlord and can even file an eviction suit against him.

So you may have to amicably settle the matter instead of agitating over it.

 

 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

If the landlord is not accepting the rent, then you may file a petition before the court to permit you to deposit the rent in the court.

Generally the landlord will demand only 33% of the sale consideration amount and not 50%, you can refuse to give the amount demanded.

No doubt she can file an eviction petition to evict you for not using the shop  and it being closed for years.

But you can fight it out legally in case of an eviction suit.

 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

1. In such cases tenants usually sell their premises without the landlord's consent to a prospective buyer on 'as is where is and what is there basis' and also give a POA to the buyer to deal with the landlord on behalf of the tenant

2. when landlord learns that the tenant has sold the property without consent, then usually an eviction suit is filed against the tenant and his buyer by the landlord in small causes court

3. since the tenant by then has already taken his money, only the buyer contests the eviction suit using the POA of the tenant

4. the landlord cannot certainly demand 50% of sale price. Thats way too high and not reasonable. The norm is for 33% or 1/3rd of sale price as per customary practice in Mumbai for padgi premises transfers

5. there is no provision even in the rent act where a tenant can file a suit against the landlord for not allowing the tenant to sell the premises on payment of transfer fees

6. so only option left is to surrender your tenancy rights to the landlord itself against consideration after deduction of the landlord's transfer fees of 1/3rd

7. i understand given the description of your landlord in your query, she may not even accept this offer. So in my opinion you are left with the last option of filing a civil suit against the landlord in a regular civil court

8. if the tenanted premises are not used for the intended purpose for which they have been let for more than 6 months, then this forms one of the grounds of eviction u/s 16 of rent act for non-user, using which the landlord can file an eviction suit against you 

9. let me apply my mind on this situation and get back

Yusuf Rampurawala
Advocate, Mumbai
7899 Answers
79 Consultations

If you have shown bonafide efforts to pay the rent then he can't every your other wise yes he can evict you

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

1. i did research on the topic

2. since your landlord is not willing to do the transfer in favour of your buyer and thereby preventing you from selling your pagdi shop, you may adopt the below course

3. you and the buyer can enter into a MOU. In that MOU you will have to set up a bogus transaction between you and the buyer. That transaction would be of giving of loan to you by the buyer. The buyer can transfer some amount to you in your bank to create a trail of this transaction. Under the loan agreement, you would be liable to repay the loan within 6 months of giving the loan. On expiry of 6 months, you will have to default in repaying the loan. Thereafter you buyer will institute a summary suit against you for recovery of loan with interest. You should not contest the suit and let the Court pass a judgment and decree ex-parte against you. Then in order to enforce this decree, your buyer will make an application in execution proceedings to attach your pagdi shop so that it can be sold in execution of the decree for realisation of the unpaid loan with interest. The court will order sale of your pagdi shop

4. your buyer will then have to bid for purchase of your shop in auction sale or he may also make a proposal to buy your shop by a private treaty and the sale price would stand adjusted against the unpaid loan with interest. 

5. in this manner your buyer can bypass the requirement of taking consent of landlord for transfer of tenancy to his name. 

6. but such a course is not without risks since the landlord has a right to initiate eviction proceedings against your buyer if he is not willing to accept him as her tenant

7. i have read the Judgment of Tangerine Electronics of the full bench of Bombay High Court to suggest the above course of action to get over your un-cooperating landlord

Yusuf Rampurawala
Advocate, Mumbai
7899 Answers
79 Consultations

  1. As per the information mentioned in the present query, makes it clear that you have been blocked by the landlord with no reason and if reasons are there then those are baseless and unjustified.
  2. Yes, you have the right to sell it as he is himself not accepting the rent and now not even allowing to dispose the property.
  3. You should proceed with the sale transaction and thereafter if he fails any right in the property then he would have to claim against you and then you can give him some amount but surely not 50 percent which he has been demanding.

Sanjay Baniwal
Advocate, South Delhi
5477 Answers
13 Consultations

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