Landlord refused to compensate the tenant for making improvements in leased property to get more income from the land. I have taken a premises on rent and built several permanent structure with the permission of the landlord. Now the premises is used for organising commercial activity. For that purpose I used to book small fairs, conferences, seasonal markets etc for seven to fifteen days. Several rest rooms, toilets, conference hall, air conditioned hall were constructed by me on my own expenses. The said premises had been on rent for more than ten years. Now the landlord refused to extend the lease and also refused to pay compensation for the improvements and permanent structure made by me on the land.
Asked from: Uttar Pradesh
You had carried out permanent construction on the premises after obtaining due permission from the landlord. These constructions have enhanced both the value and utility of the land. Consequently, the premises now have the potential to generate significantly more benefit compared to their earlier barren condition.
As per established legal principles, if a tenant makes improvements or permanent constructions at their own expense and such improvements are subsequently transferred to the landlord along with possession of the land, the landlord is under a legal obligation to compensate the tenant for the cost of such constructions. If the landlord chooses not to derive benefit from those structures, he may opt to demolish them. However, in your case, the structures have not been demolished and the landlord continues to enjoy the benefits arising therefrom.
Under these circumstances, you are legally entitled to claim compensation for the improvements made. It is advisable to serve a legal notice upon the landlord, formally demanding compensation for the constructions you have undertaken on his land. Should the landlord fail or refuse to comply with your demand, you may initiate a civil suit for recovery of the cost of the improvements.
You have a valid and enforceable right to claim the expenses incurred for enhancing the property, and legal recourse is available to you for enforcement of that right. Landlord has illegally refused to compensate the tenant for making improvements in leased property.
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