The initial agreement was for a term of three years and the option to renew the lease in further terms of three years at a time after allowing 10 per cent rent increase over the previous rent exclusively rested with the lessees. They have subsequently availed nine extensions, with the last rent fixed in 1995 at Rs 4,245 per month. All subsequent agreements have been duly executed and registered.

My brother and myself are chartered accountants who have been practising in Mumbai for the past 10 years from rented premises on MG Road. We are extremely eager to move into our own premises down town but cannot afford a monthly rent of Rs 1 lakh in a B-class building in the CBD Area. However, the tenant refuses to vacate the premises as he claims that he has been given the right to continue leasing thepremises in perpetuity and as long as he continues to pay regular rent and allows periodic rent revisions, his right to remain in occupation of the premises is absolute. Can he be evicted under the subsisting provisions of Bombay Rent Act? What is the correct legal position?

-- Gulshan Kumar, Mumbai

Your tenancy is governed by the terms of your rent agreement. The fact that your parents entered into a fresh registered lease agreement every three years and the same was duly registered does establish the fact that it was always your parents intention to offer a limited term tenure and your parents always had the intention to occupy the premises themselves or make it available for the use of their immediate family at a future date.

Even the Bombay Rent Act provides for recovery of premises by the landlord on grounds of genuine personal need. Since the last lease was executed in 1995 for a term of three years it would be fair to state that this lease would come to an end in October 1998 andthereafter your parents tenant would cease to be an authorised tenant unless of course your parents either renew the lease or else continue to accept the rent even though the lease has expired.

In the event of their accepting even a single days rent beyond the subsisting lease term, it would be construed that they have verbally agreed to extend the lease term and that their tenant instead of being a fixed term tenant has become a month to month tenant. A situation that only aggravates the present legal position.

By way of modality your parents should notify their tenant by registered post at least three calender months prior to the expiry of current lease term that as the premises are required for their personal use, they would not be entering into any further lease arrangement and would appreciate if the tenant arranges to hand over vacant possession of the premises upon lease expiry in tenantable condition in a peaceful manner.

In the event the premises are not vacated on or before the lease expirydate, a notice be sent to him within 15 days, pointing out that as the lease has already expired due to passage of time. So he is in unauthorised occupation of the premises. If he still fails to do so, a final notice must be sent to him extending the handing over period by yet another 10 days. He should, however, be told in unambiguous terms that if he still fails to hand over vacant possession of the premises, he would not only be liable to be evicted but also liable to pay market rent for the premises.

It should also be stated that this communication is without prejudice to your rights to initiate legal action against him. Make sure that during the intervening period no rents are accepted without the directions of the court of adjusdicature even after filing of the eviction suit.

Whilst the process to seek possession of your premises may be time consuming, your parents will ultimately succeed in regaining possession. It is best to plan your strategy with a competent lawyer and make the moves under hisexpert guidance and supervision.

I am posted in Mumbai and am living in a rented accommodation. I'm planning to purchase a semi-finished residential property in Delhi. After acquisition, I propose to complete and rent till such time as I move to Delhi and occupy the same myself.

I will have to borrow approximately Rs 10 lakh to finance the purchase and completion of the house, which may take about six months from the date of my taking over possession in as-is-where-is condition. What interest set offs and other deductions from my taxable income are available to me under the Income Tax Act?

--Sanjay Kapoor, Delhi

(i) Interest paid on loans specifically secured for the purpose of either acquiring and or constructing a house prior to the date of renting or occupation can be set off against your income in five equated annual installments under section 24 clause 5 of the Income Tax Act.

(ii) Once the property is rented, you can off set the interest paid during the year against theproperty income of the year. However if the quantum of interest paid exceeds the property income then the excess amount can be offset against your other income of the year--carry forward is not permitted.

(iii) Once you occupy the house yourself, you are allowed an annual deduction not exceeding Rs 15,000 per annum from your other income being the actual interest paid by you to service the loan secured by you for purchase/ construction of the house.

(iv) In addition to the above you will also be entitled to claim a deduction of Rs 10,000 annually under Section 88 of the Income Tax act for a newly constructed house for a period of five years.

This is, however, within the overall ceiling of Rs 60,000 prescribed for provident fund, insurance and other specified investments excluding additional ceiling of Rs 10,000 for infrastructural bonds and equity-linked investments etc.

G P Khungar is a real estate consultant and a former director (corporate affairs) of Ansals Ltd

(Readers are requestedto send in their queries to the Features Editor, The Financial Express, Express Building, 9&10 Bahadur Shah Zafar Marg, New Delhi-110002)