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100 years advance rent from tenant

(Querist) 08 April 2013 This query is : Resolved 
Regarding my properties, I had given a registered power of attorney to somebody, where I gave absolute rights, including the right to sell. POA died 12 years back. Properties are in U.P.

Till recently i was unaware of the fact that he (POA) had taken 100 years advance rent from my tenants and lease holders on my behalf. Amount of rent is not an issue because it was very very small (like 1/- rupee per month/ year), but it appears that i have lost my rights to sue the tenant / lessees on the basis rent defaulter.

All these advance rent receipts are executed on 10 or 20 rupees stamp papers and are UNREGISTERED. Neither i endorsed these receipts, nor any proof is there that i have received that money.

Very important :
He (POA) also writes in these documents " ...since i have received 100 years advnace rent, so i hereby transfer absolute title / ownership in your (tenant’s) favour...from now you will all rights over this property, you can contruct, sell out, rent out etc…."
My questions:

- What is the relation left now between me and these claimants (earlier tenants)?
- What is the extent of my loss caused due to these document / receipts?

Thanks
Faiz
ajay sethi (Expert) 08 April 2013
by these receipts POA has purpotedly sold the property . for sale to be valid sale deed has to be made duly stamped and regd . it cannot confer ownership rights on the property .
Adv k . mahesh (Expert) 08 April 2013
yes the sale deed has to be registered check out with the sub registrar and take a Encumbarence certificate and meet a local lawyer show the papers because now cancellation of POA and to take possession of your property by legal step is needed
prabhakar singh (Expert) 08 April 2013
All acts done by your POA are illegal and can not be enforced against you because any lease made for over a period one year requires registration and leases made for a period of 99 years would attract stamp duty
as per sale deed.

Hence you are legally safe and can take action against such so called lessee.They are just tenant month to month.You can terminate their tenancy by serving notice claiming possession and damages as market rate after a month from the service of notices in Small Causes Court.

Nothing to worry. Visit a local lawyer dealing lease and rent cases.
Faiz (Querist) 08 April 2013
Thanks for response,


POA did not creat a fresh lease but took 100 years advance rent from my already exisiting tenants / lessees.

The documents he created contains 2 things:
1. 100 years advance rent received.
2. Ownership rights transferred by taking this advance rent.

Now, if i get these documents declared useless (void) from court, wouldnt the tenant come with an alternative plea of adverse possession?

Have i lost ground of eviction on the basis of rent defaulter?
ajay sethi (Expert) 08 April 2013
as mentioned earlier ownerhsip of property cannot be transferred in this fashion . you need proper agreement duly stamped and regd . better contact a local lawyer
Devajyoti Barman (Expert) 08 April 2013
By this manner no transfer of title is possible.
Immediately revoke the POA and deal with the tenants in person.
You can file case against the constituted attorney for committing cheating and fraud.
Guest (Expert) 08 April 2013
Mr. Faiz,

I feel there is something very important missing in your description. The most important one is that you have not stated whether you sold the property through POA to the holder of POA or not. To be frank, it seems that you sold the property and now after his death you want to regain the possession of the said property. If that is correct, your own intention would not be justified.

Secondly, you have not mentioned about what rights you gave through POA. If you gave the POA holder the absolute rights, which can be possible only in the event of sale of property to the holder, that can also be construed to be the absolute rights to deal with your tenants.

Thus, by giving absolute rights, in my opinion, you virtually had already lost your rights to sue your ex-tenants. The POA holder having already died, cancellation or abrogation of the deeds by virtue of his absolute rights at this stage are also not possible. You could do that during his life time only. Moreover, if the property was originally sold by you through POA, it would not be quite a cake walk for you to re-acquire the property when you would have received the full cost of the property fom the POA holder.

Since my views are based merely on your partial information made available here by you, the validity of your proposed actions would solely depend upon the terms of the POA and the illegality of actions of the POA holder with particular reference to the terms & conditions included in the POA.

To me, the case seems to a complicated one, you would need to consult some well experienced local lawyer for guidance and advice by getting examined by him all the case related documents, including the POA holder's lease deed for 100 years.

My due apology to all those experts above with whose opinions/ advice, my opinion differs.
Raj Kumar Makkad (Expert) 08 April 2013
I fully support the relevant points raised by Ld. Dhingra ji. You are required to first clear your position so that further suggestions may be provided to you.
Sudhir Kumar, Advocate (Expert) 10 April 2013
Please red twice what Mr Dhingra has stated.
Faiz (Querist) 11 April 2013
ok,perhaps i didnt make my points clear. here is a summary:

- after my father death, i inherited a number of properties in a small town of U.P. These properties included shops, open lands & houses.

- These properties where occupied by different people either as simple tenants (11 months to 3 years teancy)or permanent lease holders. (Permanent leases with right to re-enter premises by landlord (me) in case of breach of conditions, mainly rent defaulter).

- I trusted someone and gave him a registered POA. This 'Mukhtar nama' empowered POA hoder to collect rents from tenants, lease out / rent out my properties AND ALSO THE RIGHT TO SELL THESE PROPERTIES, clearly stating it.

- POA holder died 12 years back. As i know i am bound by all acts which were done by my POA holder, and i have no intention to challange the registered sale deeds executed by him on my behalf.

- Besides some rgtd. sale deeds he had also executed some UNREGISTERED documents on 20 rupees notarised stamp saying '..that i have received 100 years advance rent from the tenant,so i hereby transfer 'ownership rights' to the tenant.."

As i understand such documents do not convey an ownership title to the claimant (the tenant), what is the relation now between the me and such people who were my tenants?

If such documents are no good in law, are they still my tenants as they were before?

What is extent of my loss (if any) caused by such documents?

I hope the above makes my case clear.
Thanks



Guest (Expert) 11 April 2013
The contents of 3rd point read with 4th point still makes your story doubtful. Unless you provide the POA and the document with transfer of ownership right to enable the experts to analyse the contents, no authentic advice can be possible.

However, with reference to your present story, the following questions arise for clarification --

1) On which date of a year the POA holder died?

2) On which date the deed for transfer of ownership was prepared?

3) Whether the rent realised by the POA holder was being received by you or not? If not what was the consideration of making the POA holder to retain the rent with him?

4) When the POA holder died, why did not you make any other arrangement to collect rent?

Faiz (Querist) 11 April 2013
Dear Mr. Dhingra,
Much thanks for your time.

1) POA was executed in 1988 when i was 18. POA died in August 2000. Though absulutely illiterate, he was a very sharp & cunning person. He could only somehow put his signatures. It is late but I regret it now to have him as my POA!

2) Deeds of transfer were made on various dates, in these 12 years.

3) Since the rent was too small (1/- rupee or 6 annas per month & per year)
so i never cared of taking this rent from him. He used to issue rent receipts on my behalf with his signs as POA. I never ever endorsed these receipts or any document (Rgtd. or Unrgtd.) done by him.

4) Since i was always kept in dark by POA who successfully managed to convince me that there is hardly any rent coming from tenants so it is not worth doing anything about it. I must admit it was my mistake that i made no other arrangment to collect rent.

It was only couple of years ago when i met POA's son who handed over to me old record concerning my family properties. After going through the record i discovered about his mischief.




Guest (Expert) 11 April 2013
Anyway, you need to consult some expert whome you could show all the concerned documents to enable him to show you some path after analysing the contents on legal angle.


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