TALKING MONEY
Sunday, July 15, 2001 

Tenancy is protected even if there is no written agreement

My father rented the first floor premises of a house in Defence Colony in South Delhi in 1960 for Rs 500 per month. While the original lease on stamp paper was signed for a period of three years, he was not asked to sign any new lease even though we continue to occupy the premises. We have been periodically increasing the rent and the present monthly rental is Rs 3,500. The ground floor premises are occupied by the owners themselves. Our landlord expired last year, survived by his wife and three daughters. All the daughters are adult and unmarried and are living with their mother.

We recently received letter jointly signed by the three daughters asking my father to pay the monthly rent to their mother henceforth. Subsequent to the landlord’s death, we had already started paying the rent to her. We were surprised to receive this communication. On inquiry, we also came to know that the property we are occupying is in fact an HUF (Hindu Undivided Family) property.

However, following the death of the Karta and there being no male co-parcener, the HUF will perforce have to be dissolved. As per the Hindu Succession Act all the survivors are equal inheritors of the estate. Since each of the daughters is also entitled to one-fourth of the income from the estate, they have written the letter to not only establish their right in the estate but also to direct that their share of the rent be also paid to their mother till such time as these instructions are altered. Are these instructions legally tenable? I now have a few queries of my own and would very much appreciate your guidance in the matter.

  • If the property was owned by the HUF how can it be deemed to be the individual property of the surviving wife and children. Why can’t the HUF continue?
  • Can my husband be forced to increase the rent following change in the ownership?
  • Can the owners terminate our tenancy just because there is no subsisting written lease agreement?
  • Do we need to take any preemptive action to enforce our legal rights as a tenant of long standing?

Any advice that you may wish to tender would be indeed appreciated.

—Savitri Bhatnagar, NEW DELHI

It is true that following the death of your landlord, who was also the Karta of the HUF owning the premises occupied by you, and there being no male heir, the HUF will perforce have to be dissolved. Under the circumstances, the title to the property vests in the wife and the children of the deceased. It is, therefore, true that as the family is governed by the Hindu Succession Act, the ownership now vests equally in the deceased’s wife and their three daughters. However, the change in status should normally follow issue of letters of probate and administration by the court.

Considering the cordiality of the relationship that has existed between you and your landlord for the past 40 years, there is no harm in your continuing to pay the rent to the landlady, but request her to issue rent receipts duly signed on her own and her daughters’ (names to be mentioned) behalf. This would ensure that you are complying with the letter and spirit of the directions of the various joint owners to the property.

As already explained, the HUF does not survive the death of a Karta, who does not leave behind a male co-parcener and at least one other member entitled to claim partition of the properties. Under the emerging circumstances it has to be dissolved.

Your tenancy carrying a monthly rent below Rs 3,500 is protected by the provisions of the Delhi Rent Control Act 1989. As and when the revised Delhi Rent Act is promulgated your rent increases will be determined on the basis of the provisions embodied in the new Act.
In the absence of a written and subsisting lease agreement your status is that of a month to month tenant. Under this circumstance, you can be asked to vacate the premises (under the Delhi Rent Act) only if they are required by the owners for their bona fide personal use or for the purpose of substantial additions, repairs or renovation of the property etc. The owners can seek vacation only after obtaining a decree from the Court of Law. In the event, the premises are required for undertaking substantial repairs, addition or alteration then the tenant retains the right to re-occupy the premises after they have been put in tenantable condition.

The tenancy cannot be terminated just because there is no written agreement. The fact that you have been regularly paying rents (presumably by check) and the landlord has been accepting these checks is adequate proof of the continuance of an ongoing relationship. This fact will be given due cognizance by the court of law in the event the owners plead to the contrary. You do not need to take any preemptive action in the matter. Although I do hope that you had formally acknowledged the joint letter addressed to you by the three daughters with a copy to their mother.

 
   
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