Lease agreement

Shanu (Querist) 30 November 2015 This query is : Resolved
Dear Professionals,

I am having a query with regard to lease agreement.
I am (Lessee) entering into an agreement with Mr. A(Lessor) and he wants me to pay rent to Ms. B.
By inserting following clause:-
"The Lessor hereby direct and authorize the Lessee that the Lease Rent payable by the Lessee to the Lessor under this Deed shall be paid to and in favour of Ms.B. The Lessor do hereby covenant and confirm to Lessee that the payment of Lease Rent by the Lessee to and in favour of Ms.B shall discharge the Lessee of their entire payment obligation, towards the Lessor, under this Deed and further that such payment shall not discharge the Lessor of his obligations towards the Lessee under this Deed. "

Is such payment valid.

Can we make payment to Ms B without any POA on behalf of Mr A?

Please share your opinion on this.

Thanks & Regards

Shanu

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kavksatyanarayana (Expert) 30 November 2015
Author, Lessor already agreeing to pay the rent to Ms.B in the document it self. so it is a proof that you are paying rent. for better, you obtain a receipt for the payment from Ms.B. for this no POA is necessary.

Rajendra K Goyal (Expert) 01 December 2015
Better get document drafted by a lawyer and be executed by all parties to safeguard the interest of all.

Rajpal Sharma (Expert) 01 December 2015
Hi

I think, there is nothing wrong in the clause and arrangement. But make sure that A is liable to pay income tax on the rental income. In present situation "B" is acting on behalf of "A". It is better to have a clause in the agreement/Deed that only lessor shall be liable to pay income tax and other taxes whatsoever on income arises under this agreement/deed and shall always keep the Lessee indemnified and hold harmless against all action, proceedings that may be taken by concerned authorities on account of default on part of Lessor.