Lessor has refused to renew the lease even after receiving entire rent in advance. I am running a small business in the city on a rental premises. The lessor has accepted the rent for this year but now sent a legal notice to vacate the premises because he has not renew the lease. In the lease agreement it has been mentioned that the written permission of lessor is mandatory for the renewal of rent. When the lease came to end I have deposited entire rent for this year in his bank account. After that he has sent a legal notice. The lessor wants to increase the rent or someone has approached him to let the premises on increased rent. I don’t know what is the real intention behind serving legal notice. In the present scenario whether I have any legal remedy please suggest.
Asked from: Gujarat
You stated that written permission from the lessor (i.e., the owner) is mandatory for the renewal of the lease. It appears that remitting rent into the account of the landlord (i.e., the lessor) does not constitute a renewal of the lease. There is no automatic renewal of a lease. In the present scenario, you have very limited legal options. You cannot claim renewal of the lease merely on the basis that the entire rent has been deposited in advance.
When the lessor serves a legal notice to vacate the premises, it clearly indicates that he has no intention to renew the lease. According to Section 111 of the Transfer of Property Act, a lease of immovable property terminates by the efflux of time as specified in the agreement. Therefore, when the lease period expires, the owner (i.e., the lessor) has the right to repudiate or cancel the lease. The lessee cannot compel the lessor to renew the lease solely on the ground that the entire rent has already been remitted into his account.
Since you have been running a business on the premises, eviction is not possible merely on the basis of the notice. The lessor is obligated to provide you with sufficient time to vacate the premises. You may also negotiate with the landlord for additional time to find a suitable alternative location in the vicinity. In prevailing circumstance you cannot take a defense that lessor has refused to renew the lease even after receiving entire rent because lessor has exclusive right extend the lease.
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