• Bank has stopped paying rent

My later father had leased a part of our house to the SBI in Gujarat in the February of 2018.He passed away in October 2018.This lease deed was made for 5 years with a further option to the lessee to renew the lease for a further period of 5 years at an increment of 25%of the previous rent.After my father passed away a Special civil suit was filed by my Uncle’s son(Father’s brother),my cousin brother.I am the only child(daughter) of my father and mother.The bank was also made party to this Civil suit.
 I have got the property in question duly mutated in my name by the orders of the District Collector.Afterwards the bank made an agreement with me to the effect that, i a being the only heir of the late lessor and the property being in my name, am agreeing to continue with the lease deed made in 2018 and so they started paying rent in my account.
 In January 2023 the first five years expired and the bank started depositing the revised rent automatically in my account and this continued till March 2023 when they suddenly informed me that they need to make a new agreement with me to renew the lease deed and since there is a civil suit going on they have to ask the court for permission to make a new lease deed with me quoting section 52 of Transfer of Property Act.There are no orders or injunction from the court at present.Kindly guide me as to how I should proceed in this matter?
Asked 2 years ago in Property Law
Religion: Hindu

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11 Answers

Inform the bank that you are the only legal heir of your deceased father and property has been mutated in your name 

 

2) there is no stay order passed by any court and you are willing to renew the lease deed for further period of 5 years 

 

3) no court permission is necessary 

Ajay Sethi
Advocate, Mumbai
99793 Answers
8147 Consultations

section 52 places a complete embargo on the transfer of immovable property right to which is directly and specifically in question in a pending litigation.

ask bank to apply to court for permission 

Ajay Sethi
Advocate, Mumbai
99793 Answers
8147 Consultations

1) wait for court to pass orders on application filed by bank 

 

2) if civil suit is filed in respect of property which is given on rent bank would play safe and obtain court permission before renewing agreement with you 

Ajay Sethi
Advocate, Mumbai
99793 Answers
8147 Consultations

Dear client,

It is imperative to comprehend that the Transfer of Property Act, 1882, specifically Section 52, addresses the notion of lis pendens, which translates as "pending legal action." It limits the transfer of assets that are being contested in court. Given the ongoing civil lawsuit, it appears that the bank wants to make sure the lease is still legitimate, which is why they are asking the court for approval under Section 52. You have a strong claim because you own the property and it has changed to your name. Given the involvement of their legal department, the bank's request may be a preventive move rather than an outright challenge to your ownership. Make sure that all of your correspondence with the bank, leasing agreements, and property rights are properly documented. It's critical to keep lines of communication open with the bank and your legal counsel if you're not subject to any court orders or injunctions. Rather than an attempt to bother you, the tactic can just be a formality in the process.

 

Hope this helps you.

Anik Miu
Advocate, Bangalore
11017 Answers
125 Consultations

Once the bank has recognised your title in the capacity of lone successor in interest/legal heir post the  death of your father  and had been paying the monthly rental amount regularly till January 2023 and have been paying the enhanced rental amount post expiration of lease agreement, the bank cannot abruptly stop paying the monthly rental amount without any valid reasons. The reasons stated by bank are flimsy and not maintainable. You can issue a legal notice to the bank demanding them to pay the rental amount regularly or to vacate the premises failing which you can inform them that you will initiate action for eviction for default in rental payment

T Kalaiselvan
Advocate, Vellore
89995 Answers
2496 Consultations

The court case has nothing to do with the leas agreement which had been in force from the year 2018 onward.

you can issue a legal notice as suggested in my previous post. 

T Kalaiselvan
Advocate, Vellore
89995 Answers
2496 Consultations

Instead of taking proper legal action against the bank, you are just wasting your time by asking the same questions repeatedly.

You can issue a legal notice to the bank demanding the payment of rental payment failing which you can initiate an eviction suit to evict the bank for default in payment of monthly rental amount

T Kalaiselvan
Advocate, Vellore
89995 Answers
2496 Consultations

No such thing. Just send legal  notice either to deposit rent or vacate the premises with immediate effect. 

Yogendra Singh Rajawat
Advocate, Jaipur
23082 Answers
31 Consultations

No court permission required. Your cousin has no locus standi to file case on the suit property. 

Yogendra Singh Rajawat
Advocate, Jaipur
23082 Answers
31 Consultations

- As per law, after the demise of your father intestate , his property would be devolved upon you and none having any right over the said property leased to bank. 

- Further, as the said property is already mutated in your name , then you should sent a legal notice to the bank to attorn you as landlord/owner of the said property , and to pay the rent regularly. 

-  However, a lease does not terminate with the death of the original lessee, but survives during the remainder of the term to his heirs and representatives.

- The  permission of the court is not needed to continue the tenancy and to attorn & pay the rent 

- If the bank has stopped to pay the rent to you, then you can file an eviction suit for evicting the bank from your property and to claim the arrears of rent. 

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

You can claim rent from bank by filing eviction proceedings against them if you want to it also file suit for claiming rent under specific relief act

Prashant Nayak
Advocate, Mumbai
34527 Answers
249 Consultations

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