Hi sir/madam, I (landlord) from karnataka signed the lease deed (registered) for 18 years without proof reading with a lawyer and now there is a specific clause in deed we have to renew the lease for further period (30 years) after 18 years lease is over without any condition and without mutual consent with landlord. Is this clause grants the tenant unilateral authority to decide on the renewal of the lease after the initially agreed period? Is it compulsory to renew lease if I'm not willing to renew it. Tenant is the one who drafted lease deed and when I asked him after registration he said you should have read it before now they won't change lease deed. I am not willing to review the lease after lease deed period is over. Thanks in advance.
Dear sir, you can issue a legal notice, terminating the lease as lease period is over and the right to renew lies with you.
Dear Client, As per your query, you have two possible courses of action -
1. Give a proper notice of determination of lease, specifying a proper time frame within which the tenant has to vacate the premises (it is advisable to give at least 1 month time). This notice is valid in accordance with Section 111(h) of Transfer of Property Act, 1882.
2. Challenge the unilateral renewal clause on the grounds of misrepresentation in accordance with the provisions of Indian Contract Act, 1872. Mention that your were mislead during signing of the lease deed. 3. You may also consider negotiating with the tenant in order to mutually amend the clause of the deed. Hope this answers your query
