MODERN HOTEL, GUDUR REPRESENTED BYM.N. NARAYANAN vs K. RADHAKRISHNAIAH & ORS.

The Supreme Court held that the stipulation in the lease deed regarding advance rent being refundable at the end of the tenancy is null and void under Section 7(3) of the Andhra Pradesh Buildings (Lease, Rent and Eviction) Control Act, 1960. Consequently, the amount of advance became payable to the tenant immediately, and the tenant could not be considered a defaulter for not paying rent for some months. Additionally, the lease being for a term of thirty years without a forfeiture clause meant that eviction could not be claimed against the tenant during the subsistence of the lease.