Landlord & Tenant--Arrears of Rent--Rent Escalation Clause in Unregistered Lease Deed Enforceable
Rent escalation clause in an unregistered lease deed is enforceable where the tenant continues to occupy the premises beyond the initial one-year period. An escalation clause operates automatically upon completion of one year, is contingent upon continuance of tenancy, and does not render the document compulsorily registrable. Continued occupation beyond the stipulated date attracts contractual obligation to pay rent at the enhanced rate applicable during such period of occupation.
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