Rights of Tenants in Redevelopment Rights of Tenants in Redevelopment

5 months ago

We have just one family living on rent in our building. Original Leave & License agreement was made between my Grandfather & his grandfather some 45 years ago. It was never renewed after that. Now we are going in for redevelopment of our building which is wholly owned by us. The person living on rent has 2 flats on his name elsewhere in the city, proof of which we have. So, can he claim any right in the redevloped building? There is no documentary proof that he is the tenant.

Legal Counsel Vidhikarya

Responded 5 months ago

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A.Dear Client,
Non-renewal of Leave & License Agreement executed before 45 years with the tenants would extinguish your title/ownership of the property, once the tnants knock the door of Court claiming ownership of rented property occupied by him for more than 45 years on the ground of adverse possession. Article 65 of the Limitation Act, 1963 provides a time limit of 12 years for a suit for possession of immovable property or any other interest on the grounds of title and that term shall begin from the point at which the possession of the defendants/tenants becomes adverse to the Plaintiff/owner . So, if the claim for possession is not filed within the prescribed limitation period, then the right of the owner based on the title stands extinguished and the person who has possession of the immovable property shall become the owner as per the theory of adverse possession. In the claim of ownership by adverse possession, possession and occupancy of the property by the claimant shall be continuous, uninterrupted and unbroken for the entire statutory limitation period/duration. Possession must be hostile possession means that the Claimant/ occupier is occupying the property despite knowing that he/she doesn’t hold any legal title to occupy or possess the said property. According to Article 64 of the Limitation Act, 1963 the limitation period is prescribed of 12 years for a claim based on the previous possession; not on the title. Thus, a civil suit needs to be filed by a owner on the basis of title within 12 years from the date of dispossession under Article 65 of the Limitation Act, and the time limit commences from the date when the possession of the immovable property becomes adverse to the Plaintiff/owner (here from the date of non-renewal of L & L Agreement). As per Sec.27 of the Act, if a person fails to file suit for recovery of possession, within a period of limitation, his right to recover the possession of that property is also extinguished. Redevelopment of property is irrelevant here so far the facts and circumstances of the issue is concerned.
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Anik

Responded 5 months ago

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A.Dear Client
If there was an original Leave & License agreement, even if it was not renewed, it could still be considered valid. The terms of this agreement would play a significant role in determining the rights and obligations of both parties. The tenant's rights and protections are often governed by state-specific rent control laws. These laws may specify the conditions under which a tenant can claim rights in a redeveloped property. When opting for redevelopment, it is common for a redevelopment agreement to be signed between the property owner and the developer. This agreement may include provisions regarding the existing tenants and their rights. The fact that the tenant has other flats in the city may not necessarily impact their rights in the specific property undergoing redevelopment. However, it could be relevant to understand the tenant's overall financial situation.
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