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Lease amount

(Querist) 04 May 2025 This query is : Open 
Dear Sirs,

To maintain the confidentiality of the parties involved, I am using pseudonyms.

Ramu is the lawful owner of the property. Balram is the first tenant, and Pramod is the second tenant. Both tenants are residing on the first floor.

Pramod approached the owner, Ramu, with a request for a lease. At Ramu's instruction, Pramod paid the lease amount to Balram, as Balram was going through financial difficulties. Balram, in turn, paid rent and interest on the amount received from Pramod.

A lease agreement was executed between Balram and Pramod based on the advice of Ramu, who also acted as a witness to the agreement. The lease amount was transferred to Balram's wife's account via IMPS.

Now, Balram is unable to repay the lease amount or the interest to either Pramod or Ramu. Aggrieved by this, Ramu filed a police complaint against Pramod seeking to vacate the premises, citing Balram’s failure to pay the interest.

In response to the complaint, Pramod expressed his willingness to vacate the premises if the lease amount is repaid; otherwise, he indicated that he would seek legal recourse. Ramu is not showing any responsibility to repay the lease amount to Pramod and she says that Pramod has paid to Balram and he should collect from him only and vacate the house.

Following a meeting involving all parties, Balram agreed to repay the lease amount along with eight months’ pending interest within a period of three months.

Now, Ramu and Pramod are requesting that Balram execute a written agreement confirming that he will repay the said amount within three months, failing which they will initiate legal proceedings.

In this context, I seek clarification on the drafting of the agreement: who should be the First Party and who should be the Second Party?

Thank you for your guidance.


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