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Article Published in the Express Magazine Dated August 19, 2001
General Attorney : Rajiv K. Luthra

I was running a parlour in a rented accommodation, and two months back there was a fire in which all the shops, including mine, were completely destroyed. My landlord is not willing to invest in the construction of another shop as he feels he cannot afford it and would rather sell the land off. Can I reconstruct a shop in that place at my expense, even if the landlord is not interested, because although the land may not be my own, the tenure of my tenancy still exists?

Rahul Chaudhry, Patna

It is not advisable for you to construct a new shop on the site where the old structure stood, without the consent of the landlord, as the same may not be legally allowed. The Hon'ble Supreme Court has upheld this view and has elaborately discussed the issue of the subsistence of tenancy under circumstances where the leased property has been completely destroyed due to a natural calamity.

Under section 108(B) (e) of the Transfer of Property Act, in case a property is destroyed by fire, tempest or flood, or violence of any army the lease may be rendered void at the option of the lessee provided that such injury to the leased property has not been occasioned by the wrongful act or default of the lessee. However, it has been held by the Hon'ble Supreme Court that this section cannot be interpreted to mean that the tenant is entitled to squat on the open land in the hope that in future if any shop is constructed on the site, he would have the right to occupy the same on the strength of the original contract of tenancy. Where the tenancy is exclusively for premises and not for land, on the destruction of the property, due to a natural calamity, which is the subject matter of tenancy, the tenancy stands extinguished. The lease of a shop is the transfer of the property for its enjoyment. On the destruction of the shop, the tenancy cannot be said to be continuing since the tenancy of a shop presupposes a property in existence and there cannot be a subsisting tenancy where the property is not in existence. However, if the property in issue is governed by the State Rent Act, the provisions of the said Act may need to be looked into. From your query, it is not clear whether your tenancy comes within the purview of the applicable State Rent Act or not.

We are entering into a family partition and, in this regard, I wish to clarify who should pay the stamp duty if the partition deed is silent on the issue, as per the law?

Gurpreet Singh, Chandigarh

Section 29 of the Indian Stamp Act 1899 deals with the question of which party to an instrument should bear the stamp duty in the absence of an agreement to the contrary between the parties. The section declares that the expenses of providing proper stamp duty on the instrument of partition is to be borne by the parties there to in proportion to the respective shares in the property partitioned. The Collector can proceed to recover duties and penalties in the manner prescribed under the Act only against each of the parties in respect of the proportionate amount of the duty due from him. By "parties thereto" is meant not merely the party or parties applying for partition but all the co-sharers who must necessarily be parties in the partition proceedings and are equally bound to bear the proposed stamp duty.

When the partition is made in execution of an order passed by the revenue authority, civil court or arbitrator, the expense of providing the proper stamp duty is to be borne by the parties in such proportion as directed by such authority, civil court or arbitrator.

 
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