Cancellation of lease deed

Querist : Anonymous (Querist) 27 February 2020 This query is : Resolved
My father owns a piece of land in the Industrial area, Dewas. Recently we received a notice for the cancellation of the lease deed because the factory is not in working condition. Since I don't know much about this, I want to know what rights do my father lose upon cancellation of the lease deed. He was planning to sell the land anyway, will he still be allowed to sell the land even after its lease got canceled.

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If your father's lease deed for industrial land is being cancelled due to factory inactivity, his rights are significantly impacted. Leasehold land cannot be sold like freehold property, and attempting to sell it could be a prosecutable offence. While the lease is active, transfer might be possible with authority approval, but selling after cancellation is unlikely. It's crucial to review the lease agreement and notice carefully, and consult a local legal expert to understand your father's specific situation and options.

SHIRISH PAWAR, 7738990900 (Expert) 27 February 2020
Dear querist,

Meet and negotiate with the officer. Read notice and lease agreement carefully or show the notice to local advocate and consult with him. Without knowing the notice content it is difficult to advice.

Regards,

Raj Kumar Makkad (Expert) 27 February 2020
A leasehold property cannot be sold like free-hold. There might be terms and conditions of the allotment/lease which according to the department stand violated on the part of your father hence a prior notice has been issued and now it is your turn to reply the same with the help of competent lawyer.

Dr J C Vashista (Expert) 29 February 2020
Mr./Ms. Anonymous,
I fully agree and appreciate expert advise of Mr. Raj Kumar Makkad.
Your father has no right or title to sell the leased plot.
Terms and conditions of lease deed are absolutely clear and unambiguous,your father is stated to have kept the plot vacant and did not commence any industrial activity for which it lease was granted, if there is some truth in your story.

Dr J C Vashista (Expert) 29 February 2020
It is advisable to consult a local prudent lawyer with relevant documents for better appreciation of facts/ record, professional guidance and necessary proceeding.

P. Venu (Expert) 29 February 2020
Any suggestion depends upon the terms and conditions of the lease.

Hemant Agarwal (Expert) 01 March 2020
IN ADDITION TO THE ABOVE EXPERT'S SUGGESTIONS:
1. Land received via a Lease Deed, is for specific purposes and time limitations & under specific statute.

2. IF perceived project is not started within the time limitations, THEN authority is empowered to seize back the land, without any further reference to the land-alottee.

3. Selling a Leased Land would be a prosecutable offence. However the Lease can be transferred to another holder under the same criteria, by getting an NOC from the relevant authority.

Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com

Raj Kumar Makkad (Expert) 01 March 2020
Subsequent lease or say sub-lease is legal only when the lesser has given specific power to lessee in this regard.

T. Kalaiselvan, Advocate (Expert) 19 March 2020
If the lease period is expired and no renewal has been done then the lessee has to vacate the premises.
He do not have rights to sell the leasehold property.
He however can sub-lease the premises during the currency of the lease period.

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