leasing laws in india
Post on 20-Feb-2018
221 Views
Preview:
TRANSCRIPT
-
7/24/2019 Leasing Laws in India
1/23
LEASING LAWS IN INDIA
PGPM 2015-17 Section D
Group 9
Arijit Nayak (15P189)
Gaura Gupta (15P199)
Mounica !"i##a (15P209)
Puneet" Putc"a (15P219)
Sarin $a%u (15P229)
&i'"a# Gara (15P29)
-
7/24/2019 Leasing Laws in India
2/23
INTRODUCTION
In India, there are two types of agreements that deal with tenancy
Lease Agreement
Leave & License Agreement
Lease Agreement covered by rent control laws
Amount of rent is evaluated by taking into consideration the cost of construction
of property and the market price of the land
Landlords- abide by the strict rent laws which apply to these agreements when
they rent accommodation with a 12 month lease
Leave & License Agreement only grants the tenant a license to occupy the
property for a period shorter than one year
ption to renew the lease, at the e!piration of the said period
-
7/24/2019 Leasing Laws in India
3/23
"he #ental control laws - prevent the landlords from overcharging
the tenants and protect the tenants from sudden or unfair eviction
Landlords need to show a reason, legally considered valid if theyintend to evict the tenant
Dra*t Mo+e# ,enancy Act 2015
Allows landlords to charge market rate from the tenants
allows them to increase the rent periodically by 1$% at the
e!piration of the rent agreement
Allows both the landlord and the tenant to mutually decide the
period for which the premises will be leased out
rovides that in case the tenancy period e!tends and it is not
renewed, the tenancy shall be deemed to be renewed on a month-to-
month basis for a period of si! months
rovides compensation to the landlord, which is double of the
monthly rent, if the tenant refuses to vacate the premises after his
tenancy has been terminated by order, notice or agreement
-
7/24/2019 Leasing Laws in India
4/23
TRANSFER OF PROPERTY ACT, 1882
"he "ransfer of roperty Act, 1''2 mainly deals with
transfer of immovable property
(oes not apply to transfers by the operation of law such
as transfer of immovable property necessitated by rder
of )ourt for insolvency or forfeiture among others
"he 1*+ sections contained within have been divided into
' chapters
Applies only to voluntary transfers
-
7/24/2019 Leasing Laws in India
5/23
OBJECTIVE
As per the preamble of the Act, the " Act, 1''2 is to amend
or regulate the law relating to transfer of property by the acts
of the parties
"he Act provides a clear, systematic and uniform law for the
transfer of immovable property
ith provision for inter-vivostransfers, the " Act, 1''2
provides a law parallel to the e!isting laws of testamentary and
intestate transfers
"he Act is not e!haustive and provides scope to apply the
principles of ustice, ./uity and 0ood )onscience if aparticular case is not governed by any provision of law
-
7/24/2019 Leasing Laws in India
6/23
SCOPE
.i/itation on ,ran'*er "he Act applies to transfer by
the act of parties and not by application of law
e/ption o* Mu'#i/ .a In case of a conflict
between the " Act, 1''2 and rules of uslim Law, the
latter will prevail
e/ption o* 3i"t' an+ 4nci+ent' )ertain incidents
of a contract or the essential nature of property are
e!emption from the operation of the Act by 3ection 2
-
7/24/2019 Leasing Laws in India
7/23
LEASE AGREEMENT Section 105of the ,ran'*er o* Property Acttalks about lease
A lease of immovable property is a tran'*er o* a ri"t to
en4oy such property, made for a certain ti/e epre'' or
i/p#ie+ or in perpetuity, in consideration of a price paid or
promised, or of money, a share of crops, service or any other
thing of value, to be rendered perio+ica##y or on 'peci*ie+occa'ion' to t"e tran'*eror %y t"e tran'*eree, who accepts
the transfer on such terms
"ransferor 5 lessor
"ransferee 5 lessee
rice 5 premium
oney, share, service or other thing to be so rendered 5 rent6
-
7/24/2019 Leasing Laws in India
8/23
F TUR S
Lessee ac/uires a transferable interest and can sub-lease
It is both heritable and transferable
Lessor and Lessee must be competent to contract and
cannot be the same person
3ub4ect matter of the lease must be specific immovable
property
TYP S
Absolute7rimary
(erivative73ub-lease78nder-lease
9i!ed term
eriodic Lease
Lease in perpetuity
-
7/24/2019 Leasing Laws in India
9/23
LICENSE License - a permissive right and is personal to the
grantee
FEATURES
A license is not connected with the ownership of land 7
property but creates only a personal right or obligation
A license cannot be transferred or assigned
License is purely permissive right arising only by
permission, e!press or implied, and not by adverse
e!ercise or in any other way
It only legali:e a certain act which would otherwise be
unlawful and does not confer any interest in the
property itself
-
7/24/2019 Leasing Laws in India
10/23
Lease Vs. Lie!se.AS .4!NS
"ransfer of an interest ere permission to do something without any
transfer of interest
;oth transferable and heritable
-
7/24/2019 Leasing Laws in India
11/23
Ri"#$s a!% &ia'i&i$ies () $#e Less(* ;ound to disclose to the lessee any material defect in the
property, with reference to its intended use, of which theformer is and the latter is not aware, and which the latter
could not with ordinary care discover
;ound on the lessee=s re/uest to put him in possession of
the property "he lessor shall be deemed to contract with the lessee
that, if the latter pays the rent reserved by the lease and
performs the contracts binding on the lessee, he may hold
the property during the time limited by the lease withoutinterruption
-
7/24/2019 Leasing Laws in India
12/23
Ri"#$s a!% &ia'i&i$ies () $#e Lessee If during the continuance of the lease any accession is made to the
property, such accession shall be deemed to be comprised in the lease
If by fire, tempest or flood, or violence of an army or of a mob, or other
irresistible force, any material part of the property is wholly destroyed or
rendered substantially and permanently unfit for the purposes for which
it was let, the lease shall, at the option of the lessee, be void provided
that, if the in/uiry be occasioned by the wrongful act or default of the
lessee, he shall not be entitled to avail himself of the benefit of thisprovision
If the lessor neglects to make, within a reasonable time after notice, any
repairs which he is bound to make to the property, the lessee may make
the same himself, and deduct the e!pense of such repairs with interest
from the rent, or otherwise recover it from the lessor If the lessor neglects to make any payment which he is bound to make,
and which, if not made by him, is recoverable from the lessee or against
the property, the lessee may make such payment himself, and deduct it
with interest from the rent, or otherwise recover it from the lessor
-
7/24/2019 Leasing Laws in India
13/23
Ri"#$s a!% &ia'i&i$ies () $#e Lessee "he lessee may, even after the determination of the lease remove, at any
time whilst he is in possession of the property but not afterwards, all thingswhich he has attached to the earth> provided he leaves the property in the
state in which he received it
hen a lease of uncertain duration determines by any means e!cept by the
fault of the lessee, he or his legal representative is entitled to all the crops
planted or sown by the lessee and growing upon the property when the
lease determines, and to free ingress and egress to gather and carry them
"he lessee may transfer absolutely or by way of mortgage or sub-lease the
whole or any part of his interest in the property, and any transferee of such
interest or part may again transfer it6 "he lessee shall not, by reason only of
such transfer, cease to be sub4ect to any of the liabilities attaching to the
lease "he lessee is bound to disclose to the lessor any fact as to the nature or
e!tent of the interest which the lessee is about to take> of which the lessee
is and the lessor is not aware, and which materially increases the value of
such interest
-
7/24/2019 Leasing Laws in India
14/23
Ri"#$s a!% &ia'i&i$ies () $#e Lessee "he lessee is bound to pay or tender, at the proper time and place, the
premium or rent to the lessor or his agent in this behalf "he lessee is bound to keep, and on the termination of the lease to
restore, the property in as good condition as it was in at the time when
he was put in possession, sub4ect only to the changes caused by
reasonable wear and tear or irresistible force, and to allow the lessor
and his agents, at all reasonable times during the term, to enter upon
the property and inspect the condition thereof and give or leave notice
of any defect in such condition> and, when such defect has been caused
by any act or default on the part of the lessee, his servants or agents, he
is bound to make it good within three months after such notice has
been given or left
If the lessee becomes aware of any proceeding to recover the property
or any part thereof, or of any encroachment made upon, or any
interference with, the lessor=s rights concerning such property, he is
bound to give, with reasonable diligence, notice thereof to the lessor
-
7/24/2019 Leasing Laws in India
15/23
Ri"#$s a!% &ia'i&i$ies () $#e Lessee "he lessee may use the property and its products ?if any@ as a
person of ordinary prudence would use them if they were hisown> but he must not use, or permit another to use, the
property for a purpose other than that for which it was leased,
or fell or sell timber, pull down or damage buildings belonging
to the lessor, or work mines or /uarries not open when the
lease was granted, or commit any other act which is destructiveor permanently in4urious thereto
e must not, without the lessor=s consent, erect on the property
any permanent structure, e!cept for agricultural purposes
n the determination of the lease, the lessee is bound to put thelessor into possession of the property
-
7/24/2019 Leasing Laws in India
16/23
MODES OF DETERMINATION OF LEASE3ection 111 of "ransfer of roperty Act 1''2 defines modes as
A lease of immovable property determines-
by efflu! of the time limited thereby
where such time is limited conditionally on the happening of some event-by
the happening of such event
where the interest of the lessor in the property terminates on, or his power
to dispose of the same e!tends only to, the happening of any event-by thehappening of such event
in case the interests of the lessee and the lessor in the whole of the property
become vested at the same time in one person in the same right
by e!press surrender, in case the lessee yields up his interest under the lease
to the lessor, by mutual agreement between themby implied surrender
by forfeiture
on e!piration of notice to determine the lease, or to /uit or of intention to
/uit, the property leased duly given by one party to the other
-
7/24/2019 Leasing Laws in India
17/23
RENTAL AGREEMENTS,er/' o* 3enta# Aree/ent
Amount of rent to be paid every month
"he amount of safety deposit to be paid to the owner on a
return basis
eriod of rental agreement
-
7/24/2019 Leasing Laws in India
18/23
Na+%e( L(+a! L(%#i -s Na*+a%a'ai a!% O$#e*s4n+ii+ua#' in t"e ca'e(efendant
-
7/24/2019 Leasing Laws in India
19/23
n 1'th August, 1'+$, Ibrahim sold his tenancy rights to one 0irdhari
;alaram Lodhi for #s6 +,EEE6 "he sale deed provided that in default of
payment of rent to #amabai or her heirs, the purchaser would have no rights
over the property
In the year 1E1*, rent for si! years was in arrears6 Binayakbhat filed 3uit in
the court of the II )lass 3ub-udge, oona, against the present defendants
on the ground of forfeiture
(efendant
-
7/24/2019 Leasing Laws in India
20/23
It was alleged in the plaint that the rent due on 2'th anuary,
1EG1, was not paid, though demanded6 laintiff asked for
possession of survey
-
7/24/2019 Leasing Laws in India
21/23
JUDGEMENT
,34A. !63, 6DGMN,
"he trial court decreed the plaintiff=s suit6 In awarding ossession
of the entire property to the plaintiff the trial court imposed a
condition that defendant
-
7/24/2019 Leasing Laws in India
22/23
6DGMN, D4S,34!, !63, "he lower appellate court confirmed the decree of the trial court with
two modifications6 (efendant
-
7/24/2019 Leasing Laws in India
23/23
top related