Commerical deed expiry / renwal
Surbhit Jain
(Querist) 09 August 2011
This query is : Resolved
Hi All,
I have a lease deed for a commercial property I own. The lease deed had been registered in the court and was for a period of 3 years expiring on 31st August 2011.
The deed mentioned the following:-
"That this lease agreement shall be for a period of three years w.e.f 01/09/2008 to 31/08/2011. After the expiry of three years, lease deed may be further renewed for another period of two years with mutual consent and on mutually agreed rate of rent"
I understand from the help from the same forum that a fresh deed would have to be made and registered afresh in the court.
My tenant's lawyer argues that this wont be required and we can just sign a letter a mutual consent. He further says that the first page of the lease (the certificate of registry) says:-
Description of Document: Article 35(ii) Lease with security upto 5 years.
Thus the lease is for period of 3 years, thus no re-registration and fresh lease. I do not agree with this though.
Could the experts please comment on the above.
Thanks
R.Ramachandran
(Expert) 09 August 2011
Your tenant's lawyer is not correct. He is trying to lead into a garden path. Beware.
According to Sec. 17 of the Registration Act, 1908, a lease for a period of more than a year is compulsorily registrable.
Article 35(ii) deals with Stamp duty payable on such lease and not whether any document is registrable or not.
Surbhit Jain
(Querist) 09 August 2011
Mr. Ramachandran,
Thanks for the reply. I am agree with you.
Article 35(ii) Lease with security upto 5 years - I believe is just a slab/category of the document type under which the original deed fell. Is my understanding correct?
Thanks
R.Ramachandran
(Expert) 09 August 2011
Yes. Your understanding is absolutely correct.
Saket Agarwal
(Expert) 09 August 2011
I do agree with Mr. Ramachandran. A lease for a period of more than a year is compulsory registrable.
K.S.Srinivas
(Expert) 09 August 2011
I agree with the experts' opinion.
Nagesh Rudrakanthwar
(Expert) 10 August 2011
Section 107 of the Transfer of property Act, 1882 & section 17(1)(d) of the Registration Act, 1908 require that all Lease from year to year, or for a term exceeding a year, or reserving a year rent must be registered except that local Govt may direct them to be made by unregistered instrument(proviso to section 107)
M/s. Y-not legal services
(Expert) 09 August 2011
