Leave and License Agreement or lease Deed
Manoj
(Querist) 05 July 2011
This query is : Open
Hello to all experts. I have a query regarding Lease Deed/License Agreement
“A” the Lessor, executed a unregistered “Lease Agreement” of commercial premises on Stamp Paper of Rs. 50 for a period of 15 years commencing from 1-12-2002 in favour of “Bank”, the Lessee. During the period of lease “A” sold the premises to “B” by a registered Sale Deed in the year 2010. No confirmation Deed is executed between “B” and “Bank” confirming “B” as Lessor in place of “A” or confirming the lease agreement although Bank is paying monthly compensation to “B”. Now “B” is forcing the Bank to vacate the premises. Nothing is mentioned in the Sale Deed about the lease agreement with the Bank nor about the possession of the premises with the Bank. Some of the important terms of lease agreement are mentioned below for reference.
i) the premises are for the exclusive use of the Lessee as Branch premises
ii) lessee can terminate the lease prematurely by giving three months notice to the Lessor. However no clause is mentioned in the Lease Agreement that Lessor can get premises vacated by giving notice of particular period or terminate the lease agreement.
iii) Lessee has to pay monthly compensation of Rs. 82,000/-
iv) Lessor provides space for installation of VSSAT on rooftop,
v)Lessee can remove the furniture and fittings installed by him
on vacating the premises
vi)Lessor agrees to carry out periodical repairs at Lessor cost to make it tenantable.
vii) The Lessee has no insurable interest,
viii) The period of lease is 15 years,
There is no transfer of interest in the property in favour of Lessee. However, the Bank is in possession since 1-12-2002 and still is in possession till date. There is no clause in the agreement allowing the lessee to make any structural changes i.e. construction or renovation except allowing the Bank to install the VSAT on rooftop. The words used in the Lease Agreement are Lease, Lessor and Lessee. No where they have used the word License agreement, Licensee or Licensor.
Now my query is
(1) Is this a Leave and License Agreement or Lease Deed
(2) Is the lease agreement legally enforceable
(3) What is the legal position of the Bank
(4) What steps can be taken by the Bank to avoid vacating the premises, what are the remedies available with the Bank
(5) Can “B” succeed in getting the premises vacated
