Building Clause Penalty Brings Legal Impasse Although the Woman's Commercial and Savings! Bank, Nanking Road, gave strong reasons in a statement fo support their argument that their tenants living in Ching Vu Alley, South Chungking Road, should have moved out long ago to allow the bank to dispose of the property, more than 3,000 recalcitrant tenants are still endeavouring to secure the right of living in the alley by referring their legal battle to the Ministry of Justice at Chungking.
The official announcement by Who bank yesterday declares the bank has {ull right to ask the tenants to move out under authority granted by the First Special District Court. In Several actions connected with this major rental dispute the bank won the appeal decision and the court has given ample time in which the tenants could leave.
The land on which the tenants live was leased by the Bank in 1931 from the Shanghai Benevolent Institution together with buildings on it and a copy of the lease was filed with the court. According to Article 6 of this lease the bank should, on signing the lease, in addition to the one year's rent therein mentioned, deposit an additional sum of $49,000 with the institution. 1f the bank failed to commence re-building immediately upon the expiration of five years from the date of the commencement of the lease, the deposit will be forfeited without prejudice to the other rights-of the lessor under the lease.
The bank, it is stated, is now-under strict obligation imposed by the lease to commence rebuilding operations at once as the five-year term has expired. Otherwise the bank will have to pay a heavy fine. It is indicated that the bank tried to ease the situation by negotiating with the institution for the cancellation of the rebuilding clause but to no avail. Having no alternative the bank started legal proceedings and won the legal battle after which the tenants were given one year to vacate.
The Shing Sheng News Agency last night said the tenants sent a petition to-the Minister of Justice in Chunking requesting that the rental situation in Shanghai should be judged on its own merits as special circumstances have arisen. They ask the Ministry to revise the Civil Law as a temporary remedy to the situation so as to allow tenants to continue living in their present houses and to avoid paying high rentals in this overcrowded city. The Ministry is also petitioned to reconsider the case and to repudiate the decision reached by the local court.
Text read from the printed page and cleaned; old type leaves the occasional error.