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2006 (10) TMI 236

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..... the lease agreement. Since the lease agreement had already earlier and the company is getting a large amount of rent as indicated either, non-payment of the proportionate increase in the rent to the petitioners is an act of oppression against the petitioners. Accordingly, we direct that the company, should pay 75 per cent of the rent received for 2 shops to the petitioners. Arrears of rent, as calculated above, should be paid latest by 31-3-2000. Since one of the contentions of the respondents was that the company has incurred certain expenditure on the shops at the time when the shops were taken on lease, we also direct that the company should indicate the amount of expenditure incurred on these shops at the time of shops were taken on lease by the company from the petitioners and adjust the same against the arrears of rent. The company will also actively pursue the civil suit filed by it for getting the shops vacated so that they can be handed over to the petitioners without avoidable delay." 2. Contextual facts depict that two lease deeds were executed between M/s. Trinity Combines Associates Pvt. Ltd. (for short tenant company ) and Prabhu Chitlangia (for short Landlord .....

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..... he submission, advanced on behalf of rival parties, it will be appropriate to examine as to what are the rights and liabilities of a lessee . Since rights and liabilities of a lessee are not defined under the Rent Act, consideration of section 108 of the Transfer of Property Act, 1882 (for short TP Act ) appears necessary, which reads as under : "108. Rights and liabilities of lessor and lessee. In the absence of a contract or local usage to the contrary the lessor and the lessee of immovable property, as against one another, respectively, possess the rights and are subject to the liabilities mentioned in the rules next following, or such of them as are applicable to the property leased : ( b )Rights and liabilities of the Lessee ( d ) If during the continuance of the lease any accession is made to the property, such accession (subject to the law relating to allusions for the time being in force) shall be deemed to be comprised in the lease ; ( e )if by fire, tempest or flood, or violence of an army or of a mob, or other irresistible force, any material part of the property be wholly destroyed or rendered substantially and permanently unfit for the purposes for whic .....

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..... s agent in this behalf ; ( m )the lessee is bound to keep, and on the termination of the lease to re-store, the property in as good condition as it was in at the time when he was put in possession, subject only to the changes caused by reasonable wear and tear or irresistible force, and to allow the lessor and his agents, at all reasonable times during the term, to enter upon the property and inspect the condition thereof and give or leave notice of any defect in such condition, and when such defect has been caused by any act or default on the part of the lessee, his servants or agents, he is bound to make it good within three months after such notice has been given or left; ( n )if the lessee becomes aware of any proceeding to recover the property or any part thereof, or of any encroachment made upon, on any interference with, the lessor s rights concerning such property, he is bound to give, with reasonable diligence, notice thereof to the lessor; ( o )the lessee may use the property and its products if any as a person of ordinary prudence would use them if they were his own; but he must not use, or permit another to use, the property for a purpose other than that for whic .....

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..... nt, any view cannot deprive the landlord from the increased rent since the right to receive the rent is vested in landlord and in view of clause (1) of section 108 of T.P. Act the tenant cannot contract with sub-tenant to divest the landlord of that right. That is not the intention of Legislature that the landlord be asked to initiate, proceedings under section 11 read with section 10 of the Rent Act for the increase of rent, which had already been increased by the tenant and charged from sub-tenant. The tenant under section 108( k ) of T.P. Act is liable to disclose the landlord that his charging increased rent from the sub-tenant. The tenant in view of clause (1) of section 108 is bound to pay entire increased rent to the landlord which has been charged by him from the sub-tenant. Since Rent Act prevailed in Rajasthan does not provide for the liability of tenant, one has to look at section 108 of T.P. Act for adjusting the liability of the tenant. Their Lordships of the Supreme Court in V. Dhanpal Chettiar s case ( supra ) indicated as under (para 5) : ". . . .The topic of transfer of property other than agricultural land is covered by Entry 6 of List III in the Seventh Sche .....

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