You can ask bank to increase rent by 25 per cent as per terms of agreement signed with grand father
2) in event bank refuses to increase rentals terminate agreement and ask bank to vacate premises
SBI lease agreement
My grandfather had given out a part of his house on rent to the SBI since more than 20 years ago.In the year 2018 He made a fresh agreement with the SBI for 5 years with the option to the SBI to renew the lease for another 5 years with an increment of 25% of the rate/sqft agreed upon in 2018. In the October of 2018 my grandfather passed away.My mother being his only heir inherited the property.Meanwhile my mother’s cousin brother(Chacha’s son) filed a civil suit in the court for the properties of my Grandfather and also made SBI a party to the suit. The property was mutated in my mother’s name on the orders of the District Collector in 2021.After this we approached the bank to make a fresh lease deed in my mother’s name.The manager said that since the lease agreement that my grandfather made with the bank will expire in 2023, we only need to give the bank a notarised affidavit stating that we agree to the lease agreement made by my grandfather and will honour it. We did so and started getting rent in my mother’s account. Now since the old agreement has expired a new lease agreement has to be made but the bank Eid saying that since some legal issues are pending in the court regarding ownership of the property they need my mother to provide them with TIR/TCR confirming the ownership in her name.There are no injunction orders or any orders give by the court at this moment. What should I do to tackle this situation? Can I ask the bank to increase the rent because their earlier agreement was with my grandfather and now the new agreement will be with my mother?
Asked 2 years ago in Property Law
Religion: Hindu
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10 Answers
In new agreement with your mother you can increase the same if already not agreed by earlier agreement
Your mother can issue a legal notice to the bank mentioning that upon the death of the original landlord, she on the basis of successor to the deceased has inherited the property.
She can produce a copy of the death certificate and the mutation records, including a copy of the legal heirship certificate and copy of her identity proof attached to the legal notice.
She can instruct the bank to pay an enhanced rate of 25% of rental amount and enter into a fresh lease agreement with her or to vacate the premises.
If they do not respond properly or do not cooperate, she can file an eviction suit to evict the SBI by following due process of law.
The claim of SBI seeking confirmation of ownership of your mother is not justified and is contrary to law. For tenancy, the ownership is not relevant. As per law a person may be landlord but simultaneously he may not be owner of the tenanted premises. In present case, your mother is only legal heir and property also stand mutated in her name so bank cannot refuse to extend lease in favor of your mother. However, it is to seen that if it was grandfather property then how it was only your mother who is daughter in law of grandfather then how only your mother was his legal heir? Is there any WILL of your grandfather? What are the details of case filed by your chacha, relief claimed in said suit and has court passed any interim stay or not? Had court issued any direction to SBI regarding lease and rent or not? Nevertheless, if there is no direction to SBI regarding lease and extension of lease and payment of rent then your mother should write to SBI for extension, increase in rent and payment of rent to your mother failing which a legal notice be issued to SBI.
By my Grandfather I meant my mother’s father.It is a special civil suit filed partition of properties held by my grandfather.There are no orders from the court at the moment.No directions to the SBI.The SBI we’re also paying rent in my mother’s account since 2020(after her name was mutated in the revenue records)as I have mentioned earlier.Only now in 2023 they they are asking for a TIR/TCR.
Asked 2 years ago
OK, then it is your maternal grandfather. Your mother's cousin is you maternal uncle (Mama) and not chacha i.e. paternal uncle. You have not suitably referred relation that is why query were made. Suit is required to be looked into. On what ground and claim partition suit was filed? Which relief have been sought in suit? SBI cannot stop rent in any eventuality.
What is TIR/TCR .kindly clarify
Yes you can do it if there are no orders from court but just don’t do any illegal act when matter is subjudice before court
You can issue a legal notice informing the SBI about the expiration of the lease agreement and they are required to enter into a fresh lease agreement with enhancement of 25% of rental amount with the current owner and you can attach the copies of the title related documents including the death certificate along with your legal notice.
You can also add that if they fail to comply with the instructions, they are liable to be evicted by due process of law.
Bank as tenant is not entitled to seek TIR/TCR from you as there is no dispute with regard to your tile against bank. It is dispute among legal heirs. Issue a lawyer's notice to bank seeking enforcement of agreement warning of eviction proceeding in case of failure to do so.
Dear client,
In order to tackle this situation, you should first obtain the necessary documents to confirm the ownership of the property in your mother's name. The TIR/TCR documents can be obtained from the local municipal authority or the revenue department.
Once you have obtained the necessary documents, you should submit them to the bank along with a request to enter into a new lease agreement with your mother. It is possible to negotiate the terms of the lease agreement, including the rent, with the bank. However, it is important to keep in mind that the bank may have its own policies and guidelines regarding rental rates, and these may not be negotiable.
In addition, you should also keep track of the civil suit filed by your mother's cousin brother and ensure that the necessary steps are taken to protect your mother's interests in the property. It is advisable to consult with a lawyer who can advise you on the legal aspects of the case and represent your mother's interests in the court proceedings.
In summary, in order to tackle this situation, you should obtain the necessary ownership documents, submit them to the bank, negotiate the terms of the lease agreement, and consult with a lawyer to protect your mother's interests in the property.
