Case030: court acknowledged the validity of cancellation based on around 4 months’ non-payment

C O N T E N T S

Judgement of the Tokyo District Court on February 17, 2016 (Case Number: 2015-RE-974)

Tokyo District Court acknowledged the validity of cancellation of building lease contract based on around four months’ non-payment.

The rent of the building was 100,000 yen per month. However, the lender and the tenant made a written agreement providing that the rent is 53,700 yen per month so that the tenant could submit that to a public institution to receive welfare. In the district, the maximum rent accepted for receiving welfare was 53,700 yen per month. They also made a written agreement providing that the document stating the rent was 53,700 yen was only for submitting to a public institution and that the document did not change terms of the lease agreement.
As the tenant paid only 53,700 yen of 100,000 yen rent for some months, the lender demanded to pay unpaid rent.
As the tenant denied payment of the full rent and the amount of unpaid rent became around four months’ rent, the lender cancelled the lease agreement and demanded eviction based on cancellation of the lease contract.
The tenant argued that the rent reduced to 53,700 yen per month by the written agreement.
The court denied the tenant’s allegations judging that the lender and the tenant agreed in writing that the document did not change terms of the lease agreement.
The court acknowledged that the lease contract was validly cancelled based on around four months’ non-payment of the rent.