Habib Punja and Sons v. Madam Margot Agas, Misc. Civ. App. 15-D-67, 5/10/67, Biron J.
In March 1963, plaintiff let commercial premises to defendant at a monthly rental of Shs. 2,400/- for a period of three years. The agreement provided, “If the lessee be desirous of taking a new lease …. After the expiration of the term hereby granted … and …. Shall deliver ….. notice in writing not less than three (3) months before the expiration of the said term then the lessors will … grant to the lessee a new lease …..” at a monthly rental of Shs. 3,000/-. Defendant exercised this option, but contends that the standard rent under section 4(1) of the Rent Restriction Act is Shs. 2.400/- rather than Shs. 3,000/-. That Act defines “standard rent” as the rent at which the premises were let on a prescribed date which, for commercial premises were let on a prescribed date which, for commercial premises, is let January 1965. [Rent Restriction Act, ss. 2, 4(1).] However, section 4(1) also provides that if a lease entered into before the prescribed date provides for an increase in rent during the
Term, or if it provides for a progressive rent, then the rent as so increased shall be the standard rent. Plaintiff argued that the letting of the premises with an option to renew constituted on letting for a period of six years and that the rent of Shs. 3,000/- was a progressive rent.
Held: (1) There is no authority determining whether an increased rent upon an option to renew is a progressive rent during a single tenancy. [Distinguishing Bryanston Properties Co. Ltd. v. Edwards (1943) 2 All E. R. 646; Tedman. V. Whicker (1944) 1 All E. R. 26; Wheeler v. Wirral Estates Ltd (1935) 1 K.B. 294.] (2) The intention of the parties, as shown by the ordinary meaning of the words of the agreement, governs whether a new and separate tenancy was created. (3) The words of the tenancy, which vary materially from those of the Encyclopaedia of Forms and Precedents, 3rd Edn. Vol. 8, p. 231, show an intent to create a new and separate tenancy if the option to renew is exercised. Therefore, the rent of Shs. 3,000/- is not progressive rent under the original tenancy; the standard rent is Shs. 2,400/- the rent on the prescribed date.
0 Comments
PLACE YOUR COMMENT HERE
WARNING: DO NOT USE ABUSIVE LANGUAGE BECAUSE IT IS AGAINST THE LAW.
THE COMMENTS OF OUR READERS IS NOT OUR RESPONSIBILITY.