Can decree be enforceable to other landlord (new purchaser)?
Struggling Landlord
(Querist) 03 August 2013
This query is : Resolved
I have executed a Compromise Decree before Small Cause Court against a tenant. In the decree tenant have agreed to vacate after giving 6 months advance notice from me (land lord).
Now I want to sell the shop. My query is will this Compromise Decree be applicable to incoming landlord ?
thanks in advance
Raj Kumar Makkad
(Expert) 05 August 2013
entire terms which are part of compromise decree are fully applicable to your successors.
J K Agrawal
(Expert) 05 August 2013
Initially I am agree with all the expert but want to raise some doubts.
The decree is agreement only and nothing else. The relationship of landlord and tenant comes to an end after sale of property. (It is time to look at section 111 condition(c) of The TP Act.) Now there is no law that the agreement is binding on the new purchaser.
The agreement is not an encumbrance over the 'property' and it does not passes with property. The agreement is binding persons only and enforceable against them personally.
I think the agreement between old land lord and tenant is of no use and the status of tenant is only of tenant by atonement and the tenant is having only those rights available to him by special Law.
Dr J C Vashista
(Expert) 06 August 2013
Agreed with Mr. Agrawal to a very limited extent that the encumbrace over the proerty does not pass with property and agreement is binding on the signitaries to the agreement and not the purchaser of the property.
As stated in the querry it is made clear that tenant has agreed to vacate the property after 6 months, thereafter, there is no claim, interest, possession over the propperty. Whatsoever, possession of the property is not an encumbrance wherein the tenant is the person-in-possession which is not encumbrance.
