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VWe have been running a restaurant on a terrace of a 3 storey Hotel, now someone is offering him 2X rent and he wants us to vacate or increase the rent from next month or else he will lock the terrace. Now we have spent more than 20 lacs on this restaurant and suddenly he wants to double the rent. Main point to notice here is
1. It’s a terrace
2. No rent agreement and only cash payment ( although we have whatsapp proof of everything)
3. we have our own terrace electricity connection on the name of the hotel
4. Our rent was just increased 2 months ago (whatsapp proof)Please suggest us what to do as soon as possible
Thanks in Advance -
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PBusiness. Rental zameen pe. 20 lakh ki investment. No rental agreement. Bhai aap ek baar apni location bata do (rough idea) mai aapke liye best dimaag ka doctor dhoond deta hoon. Dont worry sab theek ho jaega.
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FYou’ve built up an equitable right to stay by running your restaurant openly for years and pouring in lakhs of rupees—so you aren’t just a trespasser on that terrace. Under Section 53A of the Transfer of Property Act a “transferee” who takes possession and makes improvements on an oral contract gains a right to remain until the contract is performed—and your ₹20 L investment and utility payments squarely qualify as part-performance . A landlord can’t simply padlock a commercial tenant without giving a written notice (usually 15–30 days) and obtaining a court eviction order—even without a lease agreement Indian law treats you as a month-to-month tenant who must be formally sued for eviction . If he changes the locks anyway, you could file an injunction for unlawful eviction and recover costs for being shut out unfairly . You also have a solid claim to restitution of your improvements—courts routinely order landlords to compensate tenants who built or upgraded premises in good faith . On the safety side, any terrace restaurant needs a BMC health/trade NOC and fire-safety clearance before operation—filing a regulatory complaint will freeze his plans to re-let the space at double rent and buy you negotiation time . Legally he can propose a rent hike, but sudden 100 percent jumps two months after the last increase may be deemed unreasonable under rent-control principles . In practice you can offer a moderate rise (10–15 percent) while you formalize a written lease—he keeps income steady; you keep your business running; and any further lock-outs give you strong grounds for damages.
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BLawyer here. Ive contested plenty of cases against forceful eviction of tenants and yours is a classic case. Youd have to approach the situation carefully but the relief is almost guaranteed and the landlord will neither be able to evict you, nor able to put a lock or create hinderances in your tenancy.
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CAll cash? Is this a legal business? With all permissions? Since this is a commercial arrangement, the owner is within rights to give notice and increase rent. The thing is, who can take the hit.
If you litigate, can the owner afford to lose the rent? Can you afford to litigate and keep the place shut until the situation gets resolved?
Better option is to try to negotiate. Since you have spent your own money in doing up the place, you can try to recover that as part of the negotiation.
Is this in Khar?
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