One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.

Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.

Mr.X had entered into a notarized agreement with ABC Tourism Company for leasing 600 square feet of open land in Area Y to operate a cafe. During the initial construction phase, the company representatives instructed Mr.X to cover the footpath area citing safety concerns. Mr.X complied with these verbal instructions and operated his business successfully for two years. However, after witnessing the cafe’s profitability, ABC Tourism Company sent a legal notice claiming that Mr.X had breached the original agreement by extending beyond the agreed area. The company now demanded that Mr.X either pay additional rent for the extended area or vacate the premises entirely, despite having previously encouraged the construction modifications.

Advice in Such Cases

Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation to come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Document all verbal communications and instructions given by the landlord. Gather evidence of the company’s approval or encouragement for the construction modifications. Review the original agreement carefully to identify any clauses related to modifications or extensions. Consider negotiating a revised agreement that reflects the current situation rather than engaging in costly litigation.

Applicable Sections of Law

Under the Bharatiya Nyaya Sanhita (BNS), Section 318 deals with cheating and dishonest inducement. Section 351 covers criminal breach of trust if any party misappropriates property or funds. The Bharatiya Nagarik Suraksha Sanhita (BNSS) provides procedures for filing complaints under these sections. Additionally, contract law principles under the Indian Contract Act govern breach of agreement cases, while the Transfer of Property Act regulates lease agreements and modifications.

If You Are the Complainant

• File a complaint against the tenant for unauthorized extension of leased premises
• Serve a proper legal notice demanding compliance with original agreement terms
• Gather evidence of the original agreement and any documented communications
• Calculate financial losses due to unauthorized use of additional area
• Consider filing a civil suit for recovery of damages and possession of the extended area

If You Are the Victim

• Respond to the legal notice within the stipulated time frame with proper legal counsel
• Collect all evidence of verbal permissions and encouragement for the modifications
• Document the business investments made based on the company’s instructions
• Explore options for counter-claiming damages for wrongful termination or harassment
• Negotiate for a fair resolution considering your investments and business establishment

How the Police Behave in Such Cases

Police typically treat contract disputes as civil matters rather than criminal cases unless fraud or cheating elements are clearly established. They may suggest approaching civil courts for resolution. However, if there’s evidence of criminal breach of trust or intentional deception, they will register an FIR. Police often encourage mediation between parties before formal legal proceedings.

FAQs People Normally Have

Can verbal permissions override written agreements? Verbal permissions can create implied modifications to contracts, especially when acted upon in good faith. Is a notarized agreement more difficult to challenge? Notarization provides authentication but doesn’t make the agreement immune to legal challenges based on facts. What if I’ve invested significantly based on verbal permissions? You can claim compensation for investments made in good faith based on the landlord’s instructions. How long do I have to respond to a legal notice? Typically 30 days, but check the notice for specific timeframes mentioned.

What Evidence Is Required?

• Original notarized lease agreement and any amendments
• Photographs of the constructed area and modifications
• WhatsApp messages, emails, or written communications regarding permissions
• Witness statements from people present during verbal instructions
• Investment receipts for construction and business setup
• Business registration documents and tax filings
• Bank statements showing rental payments and construction expenses

How Long Will the Investigation Take?

Civil contract disputes typically take 1-3 years for resolution depending on court schedules and case complexity. If criminal elements are involved, police investigation may take 3-6 months. Mediation or arbitration can resolve matters within 2-6 months. The timeline depends on evidence availability, cooperation of parties, and legal strategy adopted.

Advocate Sudhir Rao, Supreme Court of India