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S Sawant 123 (Student)     06 August 2012

Will as to tenanted property

Hi,


Facts of the case are as follows-

1. A lady has the tenancy rights in a Shop Premise at Mumbai acquired long back.

2. She is a partner in a firm in which other partners are her daughter, son-in-law and grand-son out of whom, 2 are working partners. Firm is shown to be having its business run from the same premise.

3. She wants to make a Will Deed as regards transfer of tenancy rights in the said shop premise after her death.

4. I came to know that A TENANTED PROPERTY CANNOT BE WILLED. Is it so?

5. If it is so, can she just make a wish in the Will Deed that She wants to transfer the tenancy rights either in the name of firm or partners of the firm or her legal heirs? Will such a Deed stand in the court of law? I mean, will it be binding on the Owner to act as per the will deed?

6. As in case of sale of tenancy rights, owner is allowed to charge a premium on such transaction for effecting such sale; can he demand any such premium in case of transfer of tenancy rights too? If yes, how much? Any maximum limit (in % terms) is specified in law for such premium?


7. What are the other ways to transfer the tenancy rights in the name of a firm or other partners or legal heirs?

 

Pls reply. Thanks.



Learning

 4 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     06 August 2012

 

Succession is a process under which rights and obligations of the dead get transmitted to the living. Succession depends upon the domicile of the deceased person at the time of his death and law of succession applicable to the deceased at the time of his death.

Succession of immovable property of the deceased is regulated by the succession laws in India, wherever the deceased was domiciled at the time of his death. But succession of movable properties in India of the deceased is regulated by the law of the country in which the deceased was domiciled at the time of his death.

If the deceased has left a valid Will, then it is a case of testate succession and otherwise it is a case of intestate succession.
Tenancy rights cannot be bequeathed under a Will, but in certain cases tenancy rights can be inherited. Property received by a Hindu on inheritance is his absolute property and can be dealt with, by him, in the manner he desires.

S Sawant 123 (Student)     06 August 2012

Hello Mr. Rama Chary,

 

Thanks a lot for the prompt reply first of all.

 

Sorry to say, but I could not get clear on my queries from your answer.

 

1. Did you mean that 'though the tenancy rights cannot be willed, they will be automatically transferred in the name of legal heirs of the deceased as per the law of succession?'

 

2. If it is so, is this provision also applicable in respect of Commercial Premise (i.e. Shop)? It is situated in Mumbai, Maharashtra.

 

3. I came to know that, in respect of Residential Property, the tenancy rights will be transferred to the Legal Heirs as per the Law of Succession, only if such legal heir was also residing in such premise at the time of death of original tenant. Is there any provision on the similar grounds in case of Commercial Premise also? (E.g. continuation of the same business in the said premise by the :egal Heirs, etc.)

 

4. Will it be legally binding on the owner to transfer the tenancy rights in the name of Legal Heirs of the deceased in absence of any will deed?

 

Please reply. Thank you in anticipation.

surjit singh (Assistant)     06 August 2012

For a definite answer you have to go through the tenency agreement first, see whether the tenency is made in the name of individual person or for having a commercial office runed by other partners. It all depends on the nature of tenency agreement.


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