New Delhi, July 8 -- Tenants who continue occupying a property after their lease expires may have to pay higher rent if their lease agreement contains an automatic rent escalation cause, the Delhi High Court has ruled. The court clarified that merely seeking additional time to vacate does not entitle a tenant to continue paying the old rent, Business Standard reported.

The ruling makes it clear that where a lease provides for a scheduled increase in rent, the revised amount becomes payable once the specified date arrives, even if the tenant is staying only temporarily after the lease has ended. The decision is expected to have implications for both residential and commercial lease disputes involving delayed possession of the property.

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