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Section 55 of the Maharashtra Rent Control Act – Effect of non-registration of lease agreement

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The petitioner is the owner of Flat at Juhu (licensed premises).  On 27.4.2017, the license agreement was executed by the petitioner with the respondent no.3 for two years for residential use of the flat.  It was renewed for 2019, 2020 and 2021.  However, the respondent no.3 did not pay the licence fees from April 2021.  The Respondent no.3 replied the notice that the petitioner is liable to pay Rs.3,39,49,711/- towards business transaction.

On 4.10.2022, the petitioner informed the Society and also filed police complaint on 8.10.2022.

On 9.11.2022, the respondent no.3 gave notice for Rs.3,40,00,000/- or return diamonds or execute sale-deed of the flat.

In 2023, the petitioner filed eviction petition under Section 34 of the MRC Act for possession and damages for unlawful occupation.

The application of the respondent no.3 for leave to defend under Section 43 of the MRC Act was rejected by the order dated 6.8.2024.

By another order dated 6.8.2024, the eviction petition was allowed for possession and pay damages at double the license fees till giving possession.

However, the Revisional Authority allowed the revision holding that the premises were given for commercial purpose.

The last agreement of 5.5.2021 had conflicting clauses on use of flat for residential and commercial purposes.

Section 55 of the Act provides for compulsory registration and consequences of non-registration.   Sub-section (2) provides that in the absence of written registered agreement, the contention of the tenant about the terms and conditions shall prevail unless proved otherwise.

In the present case, there are voluminous documents to show that the premises were given for residential use.  If this is pitted against few inconsistent clauses in the last agreement, it is difficult to hold that the intention of the parties was to give flat for commercial purpose.

Doctrine of “blue pencil” for striking off the offending clause when the same is found repugnant to the main contract and sought to destroy it.

Judgment dated 12.11.2024 of the Bombay High Court (AS) in W.P.No.14856 of 2024 of Deepak S. Kavadiya   Vs.  Additional Divisional Commissioner, Kokan Division and others.

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