CHAPTER II- Ownership, Heritability and Transferability of Apartments, Section 8- Right of re-entry

  1. Leasehold land is that land which is given on lease by a person (the ‘lessor’) to another person (‘the lessee’). This provision deals with a multi-storied building constructed on leasehold land.

A sub-lease deed is required to be executed by each apartment owner whose apartment is a part of a property constructed by a lessee on leasehold land.

  • The sub-lease deed is to be executed within three months from the date on which the possession of any apartment is delivered to him.
  • The sub-lease must adhere to the terms and conditions on which the lease was granted to the lessee.
  • Any other terms and conditions imposed by the lessee on the apartment owner must be approved by the lessor.
  1. In case the lessee suspects that there had been any breach of the terms and conditions of the sub-lease he may himself inspect the land on which the multi-storeyed building containing the concerned apartment has been constructed. Or, he may authorise one or more persons to inspect it to make a report as to whether there had been any breach of the terms and conditions of any sub-lease. It is lawful for the lessee to enter that land in such a case.
  2. When the lessee or any person authorised by him makes an inspection report of that land, he must furnish a true copy of it to the concerned apartment owner.

When the findings indicate that there has been a breach of the terms and conditions of the sub-lease give a notice to the concerned apartment owner requiring him to refrain from committing any breach of the terms and conditions of the sub-lease. He may also notify him to pay compensation fees according to the notified rates.

  1. The defaulting apartment owner has the right to appeal to the District Court within 30 days of receiving the notice challenging the findings of the lessee or the compensation amount to be paid by him.
  2. It is lawful for the lessee to recover the amount of the composition fees from the defaulting apartment owner as an arrear of land revenue.
  3. After the compensation has been paid by the apartment owner to the lessee, no further action can be taken against him.
  4. This provision is applicable in the following instances-
  • When the defaulting owner fails to pay the compensation within 60 days after he receives the notice.
  • When the defaulting owner, within 60 days after the District Court directs him to pay the same or  different compensation amount.
  • When the defaulting owner appeals to a higher court after the case has been disposed off by the District Court.

In these instances, the lessee has the power to exercise the right of re-entry in the defaulter’s apartment. This may be done if the right of re-entry includes the right to remove the defaulter after paying a compensation for ejectment.

  1. Twenty-five percent of the compensation fees must be deposited in the District Court’s bank account by the defaulter for his appeal to be admitted by it.
  • The District Court may remit or reduce that amount.
  • It shall distribute that deposit amount along with the interest decided in that appeal, or where any further appeal has been made against its decision, in accordance with the decision of that further appeal.
  1. The defaulting apartment owner has the right to challenge the ejectment compensation amount offered to him by the lessee in the District Court within 30 days of the offer of the ejectment compensation.
  2. The lessor, after ejecting/removing the defaulter, may allot his apartment to another person at a rate, not greater than the compensation that he is to receive from the defaulter.
  3. The lessor may direct the lessee to take action against the defaulting owner as has been outlined in the previous sections, after 90 days since the lessee has served the notice to the defaulting owner. The lessor may himself take action against the defaulter if the lessee fails to do so.