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Noc to leasor

Querist : Anonymous (Querist) 02 August 2020 This query is : Resolved 
We have occupied property for office premise under lease
Owner of the property is planning to take Loan from Bank and bank in turn asking owner to give NOC from us(leasee)
Is there any issue giving owner NOC for this
NOC for owner taking loan from the bank
Dr J C Vashista (Expert) 03 August 2020
You are in possession of the property on the strength of lease deed but not titleholder (Owner), the owner is well within his right to raise loan mortgaging the property for which you can not have any objection i.e.,you have no option but ot issue NOC to landlord.
Querist : Anonymous (Querist) 03 August 2020
Thank you sir
Just one doubt it may affect my possession if he is in default because as per deed he should ensure my peaceful possession during lease period
Rajendra K Goyal (Expert) 03 August 2020
What is the language of said NOC required by the Bank?

Obtain the language / format of NOC, get it vetted by your lawyer. Discuss its pros and cons / effect positive and negative with your lawyer and proceed.
P. Venu (Expert) 03 August 2020
Even if there is a default of the loan, your tenancy is protected but only to the extant provided by the local rent laws.
Rajendra K Goyal (Expert) 03 August 2020
You said:
Just one doubt it may affect my possession if he is in default because as per deed he should ensure my peaceful possession during lease period.

Reply:

Generally, not. In case of default from borrower, Bank may ask to deposit rent in loan account provided so agreed in the NOC.

If Bank proceed under SARFAESI Act, it may take premises in possession (may not be physical), can not evict tenant without court orders.


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