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Builder asking to vacate the flat taken on lease whose loan was unpaid
16-Mar-2023 (In Landlord/Tenant Law)
Dear Sir / Madam, We have taken an apartment on lease for 15 lakhs in Bangalore recently. However, we have come across that builder has taken an loan on the apartment and has defaulted it, which we were not aware off. Around a month back people from the bank had walked into our apartment and we were made aware that the builder has defaulted the loan amount. They said that we need to vacate the apartment within a week . We did say that we have an valid lease agreement. They dint turn up after that.Now we have also heard that this builder has registered the same apartment in the name of his mother on an later registered date than our lease agreement date. But the lease agreement we have made is in the name of builder.Queries 1.The agreement as suggested by builder is done on an 200rs stamp paper, is this valid? 2.The agreement is of 4 pages and builder has signed only on the last page. But he made me to sign on all the pages, does this hold good?3.Are we legally safe in this apartment?
65A. Mortgagor's power to lease
(1) Subject to the provisions of sub-section (2), a mortgagor, while lawfully in possession of the mortgaged property, shall have power to make leases thereof which shall be binding on the mortgagee.
(2) (a) Every such lease shall be such as would be made in the ordinary course of management of the property concerned, and in accordance with any local law, custom or usage.
(b) Every such lease shall reserve the best rent that can reasonably be obtained, and no premium shall be paid or promised and no rent shall be payable in advance.
(c) No such lease shall contain a covenant for renewal.
(d) Every such lease shall take effect from a date not later than six months from the date on which it is made.
(e) In the case of a lease of buildings, whether leased with or without the land on which they stand, the duration of the lease shall in no case exceed three years, and the lease shall contain a covenant for payment of the rent and a condition of re-entry on the rent not being paid with a time therein specified.
(3) The provisions of sub-section (1) apply only if and as far as a contrary intention is not expressed in the mortgage-deed; and the provisions of sub-section (2) may be varied or extended by the mortgage-deed and, as so varied and extended, shall, as far as may be, operate in like manner and with all like incidents, effects and consequences, as if such variations or extensions were contained in that sub-section.
Thus, the Lease is valid according to the section 65(A) of Transfer of Property Act, 1882.
(1) Subject to the provisions of sub-section (2), a mortgagor, while lawfully in possession of the mortgaged property, shall have power to make leases thereof which shall be binding on the mortgagee.
(2) (a) Every such lease shall be such as would be made in the ordinary course of management of the property concerned, and in accordance with any local law, custom or usage.
(b) Every such lease shall reserve the best rent that can reasonably be obtained, and no premium shall be paid or promised and no rent shall be payable in advance.
(c) No such lease shall contain a covenant for renewal.
(d) Every such lease shall take effect from a date not later than six months from the date on which it is made.
(e) In the case of a lease of buildings, whether leased with or without the land on which they stand, the duration of the lease shall in no case exceed three years, and the lease shall contain a covenant for payment of the rent and a condition of re-entry on the rent not being paid with a time therein specified.
(3) The provisions of sub-section (1) apply only if and as far as a contrary intention is not expressed in the mortgage-deed; and the provisions of sub-section (2) may be varied or extended by the mortgage-deed and, as so varied and extended, shall, as far as may be, operate in like manner and with all like incidents, effects and consequences, as if such variations or extensions were contained in that sub-section.
Thus, the Lease is valid according to the section 65(A) of Transfer of Property Act, 1882.
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Adv. Siddhant Sharma
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Agreement done on 200 rupees stamp paper is not valid as narrated the facts by you it suggests that it is a lease agreement. As per stamp act the stamp duty paid is insufficient. No, since the agreement LA nothing but a contract between the parties both the parties should sign at the bottom of all the pages. If you are aggrieved you can approach DRT for a relief before bank issues possession notice
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Adv. Anantha Kumar
Bangalore | 100+ Answers
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