Lessee absconded how to cancel the registered lease deed
kanyaka
(Querist) 02 August 2018
This query is : Resolved
Hello,
My grand father (Lessor first party) given land on lease in the year 2002 and lease validity is seven years. Lessee (second party) vacated after the lease period and we did not knew that we have to cancel the registered lease deed. so now when we want to apply a bank loan and and asked for EC copy as one of the documents for loan and saw an entry still exists in the EC and now lessee absconded or not will to come and sign before sub register office and also there is a clause mentioned that if the lessee after the lease period did not hand over the property then he has to pay 500rs per day till the time he vacates from the lease expiry date and also one more clause included that the guarantor (third party) has agreed for any losses to the first party by not vacating the land by lessee, then his property can be seized as the second party is not having anything under his name as they are relatives and agreed the terms in the lease. And now when we contacted the address mentioned at the time of registration he is not available there and also contacted through other source that he is not interested in coming to sub register office for cancellation of lease. Now my question is can we send a legal notice to the second party and third party about the cancellation and can we have a rights on the third parties land as we can see there is a lease mentioned in the EC stating that the second party did not handed over the land. And also how can we get a loan from the bank. And how to erase the entry in the EC can any one kindly guide us in the matter so that we can take a legal action.
Regards,
Kankaya p
Kishor Mehta
(Expert) 03 August 2018
An eviction suit has to be filed against the lessee claiming lease rent as per the penalty clause in addition to eviction. The guarantor has to be made a party to the eviction suit.
kanyaka
(Querist) 03 August 2018
@Kishore Mehta Sir,
Lessee has vacated the land and still there is an entry in the EC and we did not know that we have to cancel the lease deed after the lease period and now the lessee is not there in that address. So kindly let me know the process to clear the entry in the EC to apply for bank loan.
Regards,
Kanyaka P
Kishor Mehta
(Expert) 03 August 2018
Eviction suit has to be filed at the last known address of the lessee. Local advocate will advise you about the procedure.
M V Gupta
(Expert) 03 August 2018
As the lessee is stated to have vacated the land and possession is taken over by the land lord, the question of filing suit for eviction does not arise. As regards the entry in the EC, it may be submitted to the Bank that as the lease period has expired and has not been renewed, the entry should be ignored. You may also submit an affidavit to the above effect.
rajeev sharma
(Expert) 04 August 2018
The objection raised by bank is not a valid objection. Lease is a right of enjoyment of property for a fixed period for a determined consideration.Once that period expires and the possession of the property is delivered back to the lessor the lease is terminated. There is no need for a registered document to cancel the lease.
Asgher Mahdi
(Expert) 05 August 2018
In this case, you need at first to file a Police Complaint against the Lessee after perusal of all the covenants that mentioned under the lease agreement. Thereafter, a paper publication against the lessess need to be publish in one national and other vernacular language where the jurisdiction of your property comes. Then, with the same documents you need to file a suit against your property to be declare as non ecomberance which proves banks with the fresh EC.
M V Gupta
(Expert) 06 August 2018
Dear Mr. Asghar. The query raised is - how to get the entry of lease appearing in the Encumbrance certificate deleted. Please let us know how the procedure suggested by you will help in the matter? What kind of police complaint can be filed? Is there any offence committed by the lessee when he had already vacated the property and surrendered possession of the property on the expiry of the lease term? When the lease term has expired whether entry has any significance or effect on the rights of the land lord to deal with the property? Whether demand made by the Bank is proper?
Asgher Mahdi
(Expert) 08 August 2018
Dear Gupta,
In the instant query, the person who require to know has not clarified exactly Lessee vacated the premises complying all the clauses and conditions mentioned in that Lease Agreement which is registered. Further, he states that the lessee handed over the possession of the premises well within the lease period but not confirmed complied all the clauses of the lease agreement. Further to understanding, the querer used the word 'lesse 'absconded' which presumes that the lessee without complying to such clauses of the agreement ( which is not on our record to view) has absconded which landed trouble to the lessor is it not a ground for lodging a complaint? Further, its also agreeable that the negligent part on the side of lessor who has registered it but not care for it to enter into it. Presumably, I believe with plain language of the queryer that the lessee has absconded which means he had not complied the conditions of lease agreement which is an offence by way breach of contract. As a rule, when the lessess handing over the vacant possession of the lease property need to full it part of duties as stipulated under T.P.Act but cannot abandoned the lease premises under a fear that he need to pays on agreed amount when he left the lease premise as stipulated in the lease agreement. This act of lessee amount to prosecute.
Such a way, lodging complaint against the lessee may helpful him and get a piece of evidence to prove before the authority as lessee being abandoned the lease property without the knowledge of the lessor.Further, with this piece of evidence, the lessor may approach the authorities for encumbrances. Even so ,the authority reluctant to do it, the concern person can prefer writs instructing the authority compliance the order.
Hope so , I have clarified your doubts upon the sough query informations.
M V Gupta
(Expert) 12 August 2018
Dear Mr.Asghar. The querist has clearly stated in his query that the land was given on lease by his Grand father in 2002 for 7 years and that the lessee vacated the land on expiry of lease and handed over possession. He did not state any thing about breach of lease terms. He only stated that the lessee is not there at the address. He also stated that they did not know to get the lease deed cancelled. In the circumstances, in my humble opinion there is no criminal offence involved on the part of the lessee; and no suit for eviction also can be filed as suggested by some of our friends.The querist need to submit to the Bank from whom he wants take a loan on the security of the property that the entry in the Encumbrance ertificate (EC) should be ignored as the lease has expired and that land is in his possession..
kanyaka
(Querist) 13 August 2018
Hi Sir,
We have approached SRO to cancel the lease deed entry by giving an affidavit but sub- register not accepting the same and asked us to take approval from court. So kindly let us know what needs to be done to get a letter from court. My grand father wants to be clear that EC lease entry. Thanks in advance for your valuable suggestions.
Regards,
Kanyaka
M V Gupta
(Expert) 13 August 2018
Generally the entry relating to any registered document in the Sub Registrar's records is not cancelled unless the parties concerned file a suit for cancellation of the deed on grounds of fraud/misrepresentation etc, which in the instant case does not apply. The only way in my view is to get the deed of surrender of lease executed by the lessee and the landlord and register it with the Sub Registrar. Alternatively the land lord or the lessee may file an affidavit declaring that the on the expiry of the lease the land was surrendered and taken over by the land lord and that the lease no longer subsists. If the bank is not accepting this, best way is to approach another bank for grant of the loan.
