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Ritu Pandey   12 September 2024

Lease renewal

Rajiv Mehra, who has been like an older brother to me, has lived in his apartment in Delhi for the past five years. It’s a modest but comfortable place, close to his office, and he’s always spoken fondly of the sense of community in the neighborhood. We’ve visited him many times, and it’s clear how much he loves his home—he’s built a life there. In January 2024, when his lease was up for renewal, he had a conversation with his landlord about the terms. The landlord, whom Rajiv had always trusted, gave him a verbal assurance: the rent wouldn’t increase for the next two years. Relieved by this promise, Rajiv stopped considering other options and renewed his lease without worrying about future hikes. But things took a sharp turn six months later, in July 2024. Rajiv received a notice out of the blue from the landlord, informing him that the rent would be increased by a shocking 20%, effective immediately. I still remember how upset he was when he called us that evening. He had budgeted carefully, made decisions based on the landlord’s promise, and suddenly, this increase felt like a betrayal. Rajiv had been relying on that verbal commitment to plan his expenses, and now, moving out wasn’t even an option without facing serious financial strain. It’s not just the financial burden—it’s the principle of it. Rajiv trusted his landlord’s word, and this sudden shift felt unfair. He’s considering contesting the rent increase legally, but he’s also torn because the landlord had been reasonable for years. However, Rajiv feels strongly that the landlord should honor the promise he made. What legal remedies are available to Rajiv if the court finds in his favor?



Learning

 2 Replies

Saloni Pande   12 September 2024

 Under the Delhi Rent Control Act, 1958 the following section are applicable

Sec 6, 8, 14.

The section 6 of this act provide that a tenant cannot be evicted from a property without sufficient cause under which Rajiv can put his argument as the sudden rent rise was unfair especially given the landlord’s prior verbal assurance.

The section 8 of this act states the conditions under which any landlord can increase the rent.  Rajiv mai contest the validity if the there is no proper stipulated legal framework.

The sec 14  states that if Rajiv is being evicted for not complying with the increased rent then he may challenge the eviction under this section.

Under the Indian Contract Act, 1872

Sections- 10, 73,74 can be applicable

Under the sec10 the agreements made with free consent for a lawful consideration and have a lawful object are contract under this Rajiv can argue that the verbal assurance between them is binding.   

Under the sec 73 Rajiv can seek compensation for the breach of contract by demonstrating that he was relied on the landlord promise.

Under the sec 74 where the compensation for breach of contract penalty is stipulated for. Rajiv can revoke this section if there is any clause in the agreement regarding the penalties for breaking the verbal agreement.  

 

Proving the terms and existence of verbal agreement can be challenging even though they can be legally binding. He needs to prove it through any witness or any conversation that he had with the landlord who can corroborate his claims about the assurance of the landlord.

There should be proper documentation doen by Rajiv that show he had  effects on  his finances.    This documentation will be crucial if he decides to pursue legal action.

 

P. Venu (Advocate)     13 September 2024

Is this a story or a query? Please confine the posting to material facts.


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