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KrishnaKumar (Business)     29 June 2015

Mutation of lesed land

My father owns a plot which is leased out for a business for 35 years. the lease was initiated 15 years back.  He would like to transfer the ownership of this land to me keeping the same lease valid with same T&Cs for remaining 20 years. Is there any legal issues for this as the village officer expressed a concern that mutation will not be possible for a land which is on lease. Thanks for your expert advice in advance.



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 7 Replies

saravanan s (legal advisor)     30 June 2015

only leasehold property can be mutated and not property under lease

G.L.N. Prasad (Retired employee.)     30 June 2015

Mr.Saravanan,

Can you just elaborate difference between lease hold property that can be mutated and Mutation not possible of property under lease.as lay persons can not understand the difference in between the two lease issues.

 

 

KrishnaKumar (Business)     30 June 2015

yes, its a bit confusing. I think the question is straight forward -  can the land owner transfer the ownership of the property to another person when the land is leased out for a third party? Transfer inlcudes registration of the documents and mutation in the village records. The buying party is willing to agree with T&C of the lease until the expiry of lease.

Advocate Ravinder (Advocate/Attorney)     02 July 2015

Your father can transfer his plot on your name.  But the lease will be continued as per the understanding between your father and lease holder.  You can take the lease amounts, but you cannot evict the lease holder from the property.  The leaseholder is entitled to be in the property for the full 35 years time. 

G.L.N. Prasad (Retired employee.)     02 July 2015

Can the sale/transfer without physical possession and without lessee's written permission and NOC is valid in this case.

Advocate Ravinder (Advocate/Attorney)     03 July 2015

Though physical possession is not transfered, but constructive possession will be transfered.  It is more than physical possession.  NOC from lessee is not required. 

G.L.N. Prasad (Retired employee.)     03 July 2015

In case of fraud, who is having burden of proof of establishing lease.  To quote one incident X family has leased the land to a Petrol Bunk for 35 years.  Y has been collecting from Petroleum company lease rent on behalf of the real owners through a letter to them to send rent through Y in 1980 .  Y's family has on back of this X family filed specific performance suit on the basis of an ex partee decree in 1968 and got property registered through Court in 1971.  As real lessor is not aware of this he has even renewed the lease with enhanced lease rent in 1980 received lease rent in his own name, and when he has shifted to Hyderabad, as the lease rent cheques were missing in 1980, he has requested petroleum company to send the lease rental cheques through dealer Y (who was in fact owner as per Court judgment in 1971)

The original owners are not aware of this ex partee proceedings.   As they have been receiving lease rents regularly till the death of lessor in 1998, there is no scope for them to doubt the integrity of dealer Y.  Only after the death of real lessor, when Y's family wanted to partition stating that tthe property was purchased in Court Auction, the fraud has come to light.

Both lower court and HC felt that real lessor's family lost possession decades back and has to pay Adv.Court fee.

In this practical case who was in constructive possession the original owner lessee X or the fraudulent dealer Y ?


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