SC:Yearly increase clause in rent deed doesn’t mean tenancy is for more than a year

The Hon’ble Supreme Court, on 17th June 2020, in the matter of Siri Chand (Deceased) Thr. Lrs. v. Surinder Singh held that a contingent clause which binds the tenant to increase the rent yearly by 10% , which was contingent on tenancy to continue for more than a year, cannot be read to mean that the tenancy was for a period of more than one year.

The Hon’ble Supreme Court observed that:

When the lease deed does not mention the period of tenancy, other conditions of the lease/rent deed and intention of the parties has to be gathered to find out the true nature of the lease deed/rent deed.  (Para 14)

A contingent clause which binds the tenant to increase the rent by 10% each year, which was contingent on tenancy to continue for more than a year, cannot be read to mean that the tenancy was for a period of more than one year. (Para 16)

Copy of judgement: Judgement_17-Jun-2020

-Adv. Tushar Kaushik

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