Lease Deed
Manish Singh
(Querist) 26 May 2008
This query is : Resolved
A is a company who has taken a premises on lease and thre is no such clause which allows it to sub lease or sub let the premises. Now A is spliting up into a new cOMAPNY CALLED "B" which is goin to take over the business carrying on in the premises of that lease.
How can B take the lease of that premises without letting the Lessor involved?
Can A be legally allowed to sub lease it to it's sister concern without approval/
Please suggest
amit gupta_lawyer
(Expert) 26 May 2008
well in this case A can sub let the property in absense of any specific word about the same as per the section 107 of transfer of property act but subject to the time period of lease and other condition of the lease agrement so that those conditions may not get overlapse with the same.
105. Lease defined
A lease of immovable property is a transfer of a right to enjoy such property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee, who accepts the transfer on such terms.
Lessor, lessee, premium and rent defined : The transferor is called the lessor, the transferee is called the lessee, the price is called the premium, and the money, share, service or other thing to be so rendered is called the rent.
106. Duration of certain leases in absence of written contract or local usage
In the absence of a contract or local law or usage to the contrary, a lease of immovable property for agricultural or manufacturing purposes shall be deemed to be a lease from year to year, terminable, on the part of either lessor or lessee, by six months' notice expiring with the end of a year of the tenancy; and a lease of immovable property for any other purpose shall be deemed to be a lease from month to month, terminable, on the part of either lessor or lessee, by fifteen days' notice expiring with the end of a month of the tenancy.
Every notice under this section must be in writing, signed by or on behalf of the person giving it, and either be sent by post to the party who is intended to be bound by it or be tendered or delivered personally to such party, or to one of his family or servants at his residence, or (if such tender or delivery is not practicable) affixed to a conspicuous part of the property.
107. Leases how made
A lease of immovable property from year to year, or for any term exceeding one year or reserving a yearly rent, can be made only by a registered instrument.
All other leases of immovable property may be made either by a registered instrument or by oral agreement accompanied by delivery of possession.
Where a lease of immovable property is made by a registered instrument, such instrument or, where there are more instruments than one, each such instrument shall be executed by both the lessor and the lessee:
PROVIDED that the State Government from time to time, by notification in the Official Gazette, direct that leases of immovable property, other than leases from year to year, or for any term exceeding one year, or reserving a yearly rent, or any class of such leases, may be made by unregistered instrument or by oral agreement without delivery of possession.
108. Rights and liabilities of lessor and lessee
In the absence of a contract or local usage to the contrary, the lessor and the lessee of immovable property, as against one another, respectively, possess the rights and are subject to the liabilities mentioned in the rules next following, or such of them as are applicable to the property leased:-
(A) Rights and liabilities of the lessor
(a) The lessor is bound to disclose to the lessee any material defect in the property, with reference to its intended use, of which the former is and the latter is not aware, and which the latter could not with ordinary care discover;
(b) the lessor is bound on the lessee's request to put him in possession of the property;
(c) the lessor shall be deemed to contract with the lessee that, if the latter pays the rent reserved by the lease and performs the contracts binding on the lessee, he may hold the property during the time limited by the lease without interruption.
The benefit of such contract shall be annexed to and go with the lessee's interest as such, and may be enforced by every person in whom that interest is for the whole or a
Manish Singh
(Querist) 26 May 2008
tHERE IS A SPECIFIC CLAUSE WHIC STATES THAT IT CAN NOT BE SUB LET OR SUB LEASED
Manish Singh
(Querist) 28 May 2008
Dear Mr. Gupta,
Thank you very much for taking your time out to provide me this answer but this is insufficient to my query.
I found out a case law where i got my query resolved.
But again I am thankful to you.
