• Indemnity bond and transfer charges related to a pagdi shop

Hello,

We were not paying rent to the landlord to his demand as he was charging 3X rent, we tried to pay by cash, but he returned it. We paid by pay order and he returned that amount, we had done this multiple times so that we could be safe on our side if he approaches court. As per the letter/notice we have cleared all the rent dues as the family dint wanted to go for any legal battle. We paid the rent and replied to the letter defending our situation. Now I would like to ask few imp things, the original rent agreement for this pagdi shop was on my grandfather’s name (deceased now). Till date we never gave any death certificate or any official letter for changing of name to any of my grandfather’s legal representative or legal heirs (grandfathers children). Now the landlord has requested us to furnish the details of legal heirs so that rent receipts could be transferred to the tenant’s name. the landlord wants this to be executed and declared on the indemnity bond. How is this done? And after this step how much transfer fees the landlord can demand legally to transfer the agreement to the legal heirs’ name? The landlord argues that in the rent agreement of my grandfather, it was agreed to do only one business and now as well no other business can be done at this unit. Suppose a new amended agreement is made and the landlord directs that only previous business should be continued or face legal actions than how this situation can be dealt? Is the previous agreement gets nullified in such a situation? Can we do other legal business, or it would be difficult to change the initial business. By not letting to do any change of business is it harassment from the landlord?
Asked 4 years ago in Property Law
Religion: Muslim

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9 Answers

You can ask landlord to provide format of indemnity bond he desires

 

2) landlord cannot demand transfer charges 

 

3) legal heirs are deemed tenants 

 

4) landlord cannot dictate what business you carry on 

Ajay Sethi
Advocate, Mumbai
97447 Answers
7875 Consultations

If the landlord is insisting you to furnish the details of the legal heirs of your deceased grandfather in the form of an indemnity bond, you may prepare a notarised affidavit and furnish the details of ther legal heirs of your grandfather along with the death certificate copy.

There is no necessity to furnish the details in an indemnity bond.

If the agreement is transferred to the legal heirs, then you cannot change the contents of the original agreement, however if the landlord agrees to enter into a fresh agreement then you can request him to allow you to mention about the new business that you are doing now or intending to carry out.

The demand for transfer fee and its quantum  by the landlord cannot be predicted, it depends on the discretion of the landlord.

There is no law governing this situation.

 

If the landlord is not cooperating and giving pressure to vacate, then you refuse to vacate and obtain a stay order against the landlord based on the long time possession and enjoyment.

 

 

 

 

T Kalaiselvan
Advocate, Vellore
87649 Answers
2352 Consultations

Yes.  You can do the both. No it's no Harraaasment

Prashant Nayak
Advocate, Mumbai
32816 Answers
209 Consultations

The landlord can transfer the rent receipt to any one legal heir of the deceased tenant 

If he is willing to issue a joint rent receipt in favor of more than one legal heir then it's fine

You can submit the indemnity the bond as requested by landlord. You will have to approach a good competent lawyer to prepare that

Generally for transfer due to inheritance on death of original tenant, the landlords charge some lump sum fee but certainly cannot charge the transfer fee as applicable for a new transfer

The premises have been given to your GF for a particular purpose

So an agreement can be made between landlord and new tenants (after above transfer) to do any other business as well

Plz note that you have paid certain charges to kanoon which is not shared with any of the answering lawyers here. So lawyers are replying to your query on a honorary basis. You may approach any lawyer of your choice from this platform and have your work done by paying that lawyer's professional fees. 

Yusuf Rampurawala
Advocate, Mumbai
7741 Answers
79 Consultations

Q. how to execute an indemnity Bond in your case? 

A. you can furnish the details of the rented premises including details of the rent agreement executed by and between your father and the landlord and state that after death of your father you and other members of your family being his legal heirs are now managing and controlling the premises and are ready and willing indemnify in your father's behalf and are ready and willing to pay the dues of rent and subsequent rents thereafter at terms agreed by and between the landlord and yourself. 

Q. after this step how much transfer fees the landlord can demand legally to transfer the agreement to the legal heirs’ name?

A. The landlord can't ask for transfer fees. He can ask you to pay the stamp duty for fresh rent agreement.

 

Q. The landlord argues that in the rent agreement of my grandfather, it was agreed to do only one business and now as well no other business can be done at this unit. Suppose a new amended agreement is made and the landlord directs that only previous business should be continued or face legal actions than how this situation can be dealt? Is the previous agreement gets nullified in such a situation? Can we do other legal business, or it would be difficult to change the initial business. By not letting to do any change of business is it harassment from the landlord?

A. He is landlord of the property and therefore whatever business you want to undergo has to be under his consensus and permission. You may negotiate on rent. So far as undertaking business is concerned it cannot be without or above his consent or permission. he has authority to deny or reject. However once agreement is executed describing business that you want to undergo in his owned premises, he cannot deny for the same. 

 

 

Pooja Ashar
Advocate, Ahmedabad
237 Answers
4 Consultations

1. Legal representatives need to execute a fresh pagdi agreement with landlord.

2. Charges for registration And stamp duty will be not be much. 

3. After execution of fresh agreement you can start other business also from this premises without prior permission from landlord but previous business must continue.

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

If the BMC is proceeding to demolish the other shop without waiting for the judgment, then a suit for injunction is to be filed immediately agaisnt the BMC citing the emergency situation  and seek n emergency order to stop the authorities from proceeding with the proposed plan to demolish the shop.

You may have to wait for judgment to decide about the ownership given to the person possessing the property for decades together on the basis of law of adverse possession.

T Kalaiselvan
Advocate, Vellore
87649 Answers
2352 Consultations

You can seek stay of demolition 

 

2) mere being in possession does not confer title to property 

 

3) you can claim adverse possession if you are in open , hostile , uninterrupted possession for over 12 years 

Ajay Sethi
Advocate, Mumbai
97447 Answers
7875 Consultations

Patra means eligible and apatra means non eligible 

The eligible occupant would get the new premises in place of old shop

Even if the decision on the second shop is pending, the BMC will have to allot new premises to the person who is adjudicated by the court to be entitled to the apatra shop 

The case would not stop just because the premises are demolished as the right to claim in those premises would continue 

Yusuf Rampurawala
Advocate, Mumbai
7741 Answers
79 Consultations

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