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Confusion-meaning of tenancy right ?


CA Abhishek Singh (practice)     07 December 2013

CA Abhishek Singh
practice 
 35 likes  2059 points

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Hello everyone,

 

i am confused as to the meaning of tenancy right.

 

i understand tenancy right as right to use the premises taken on lease/rent for period mentioned in the lease/rent agreement.

i read many case laws and confused how can a tenant surrender the tenancy right to a builder and get huge compensation/ flat in new building although he is not the owner.

 

compensation should be paid to the owner and not the tenant.

 

waiting for clarification from experts. 
 

avater

Mihir (Wealth Manager)     08 December 2013

Mihir
Wealth Manager 
 620 likes  5278 points

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Back in the day, people were given tenancy rights to residence in a premises for a nominal rent for long period of time under bombay rent control act. Under this act, if a tenant has resided in that premises for over 12 years, then the tenant cannot be evicted without proper notice and compensation. The problem was serious not only for the builders but also for owners because if the owner would like to sell that property, they have to get a consent from the tenant and settle by paying large sum to the tenant. In case the tenant does not wish to be evicted, he may file a suit in the court and prolong the case as long as the tenant wishes to reside there. 

Now the leave and licence agreement is not more than 11 months which protects the owner as well as the society. If the tenant does not leave the flat after proper notice, it will be considered as adverse possession, and the court, if moved, shall order the tenant to be evicted. Now the judiciary is considering scrapping the provision of adverse possession, which is a debatable issue.

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