Rent agreement expired: Tenant to pay Rs 24L

In a recent Delhi High Court ruling, a tenant named Mr. Mendiratta was ordered to pay Rs 24 lakh to his landlords, Mr. and Mrs. Chawla, due to his failure to vacate a rented shop after the expiry of his lease agreement. The 238.38 sq. ft. shop was rented for Rs 25,500 per month in 2014, with a term of 11 months, and the rent agreement was not registered.

Mendiratta claimed to have paid Rs 10 lakh as a security deposit between November 2016 and March 2017, but there was no paper trail or receipts to support this claim. He also admitted to signing multiple rent agreements in 2015, 2017, and 2018, but was unable to produce these documents in court. The dispute arose when a new unregistered rent agreement with an increased rent of Rs 29,000 per month was signed on August 22, 2018.

Mendiratta disputed the rent increase, arguing that the rent should have been Rs 2,900 per month, as he had paid Rs 10 lakh as security deposit in earlier years. However, he could not provide any evidence to back up this claim, and the Chawlas categorically denied Mendiratta's assertions. After the expiry of the 2018 lease agreement on July 31, 2019, the Chawlas asked Mendiratta to vacate the shop, but he refused until he received his Rs 10 lakh back.

The Delhi High Court ruled on September 28, 2026, that Mendiratta must evict the shop and pay mesne profits to the landlords for the period of unauthorized occupation. The court emphasized that tenants should maintain a proper paper trail to defend their position in case of disputes, and that any substantial payments should be made through traceable banking channels and documented.