Sub lease or sale
Heaven 2011
(Querist) 16 March 2010
This query is : Resolved
Respected All,
A land measuring 15 cottahs was leased by the state Govt to our Company on 999 years lase basis with the condition that the company has to construct the property within 5 yrs from the effectiveness of the lease. Company failed obtained exemption for few years. Now one party has agreed to purchase the said land in his name an to start the construction. One condition of the lease agreement was that without a written approval from the Govt the Company can not assign, underlet or part with the property. But section 108J of the Transfer of Property Act 1882 provides that the lessee may transfer absolutely or mortgage or sublease the property leased out to it. In such circumstances which one will be better ? Should we obtain a written approval or first issue a letter of authority to the party to construct the building and to effect the sale agreement?
Kindly advice.
Regards,
Asish
R.R. KRISHNAA
(Expert) 16 March 2010
Since there is a express provision in the lease agreement not to assign or lease or sublet, the company has to take a written consent from the government to lease / assign out the same.
Raj Kumar Makkad
(Expert) 16 March 2010
Obtain prior permission therein otherwise also in the cited provision, there is no permission to the lessee to sale the leased property.
