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JayRdy (Na)     25 June 2024

Cancellation of lease agreement and lease demanding huge amout

Dear all,

I have entered in mou in feb with auto cng  company to lease my land. Mou is for him to obtain peso explosive license approval.

After approval from peso In 15th March we entered into registrared lease aagreement and partial adavce amount 5lk out of 10lk was paid. He is still suppose to obtain final District commissioner approval. After approval remaining 5lk to be paid.


On 20th march Manipal, bescom offcials, health officer came for spot inspection. My neighbor  who saw them and after knowing cng bunk coming in my land  gave complaint with health inspector objecting to same citing his health issue and hazards and treatned of filing WP.

On 21st itself I sent email about the objections raised by neighbor and copy of his objections submitted before bbmp was shared in email asking to terminate the agreement. 

Now company is demanding 25 lakhs and sent me notice asking compensation saying they engaged consultants and they have paid them 10 lks to obtain approval from bbmp and District commissioner noc, and they have incurred other losses like legal fees, architect fees and others, also asking me to pay 5lk as loss of opportunity and loss of business. 

Agreement registrared on 15th March . 21st itself I have informed of the objections of neighbora in email asking to cancel lease agreement.

 In this 5 days 15th march to 21st march, they say they have obtained bbmp, bescom approval. The govt fees paid them is hardly Rs. 1000. 

They demanding such exorbitant money from me for cancellation of lease agrement. Still they have not obtained final DM NOC. I told them if you are ready to obtain DM nOc they can obtain for this no reply. Now demanding huge money.


Please advice sir.



 4 Replies

T. Kalaiselvan, Advocate (Advocate)     25 June 2024

In my opinion. you have hastily made a decision to terminate the agreement just on the basis of a complaint given by the neighbor. 

The authorities concerned have not taken any action against the complaint neither you were instructed to cancel the lease agreement,  therefore the fault of hurriedly cancelling the lease agreement lies on you without ascertaining the facts and details. 

However you can issue a reply notice through your advocate denying their allegations and challenge their case on merits before court of law. 

Dr. J C Vashista (Advocate )     26 June 2024

Send proper reply to the notice through a local lawyer.


Dear Mr. 

Mere based on the contents written herein by you it is extreme difficult to make any comments and giving any opinion. 

This is not a mere case of LAW. It is a case which attracts LEGAL, CONTRACTS & ARBITRATION.

Till such time the copies of MOU and REGISTERED AGREEMENT both are ready in depth and finer gaps, if any are discovered no comments can be made or should be made. In the meanwhile, I would suggest you not to run to any advocate immediately and without considering the impact. 

I feel that you may need to talk with me should I you want any unconditional opinion from me  and at the time of talk you have to be armed with the said documents in front of you. This will help all the parties involved in the dispute which has popped up. 

You need help and not me and accordingly option is yours. Each and every thing can't be discussed or opined through short messages. Whatever may be, you may feel free to call me over my contact number 03324234052 or 03379618311 and without any fear in your mind. Please note that I would prefer to attend calls only in between 2.30 pm and 5.00 pm. My email id is:-


P. Venu (Advocate)     27 June 2024

Yes, you have been unwise and hasty in rescinding the agreement. Having entered into agreement for leasing out the land the specific purpose, onus rested with the lessee to obtain the necessary permissions and taking care of other formalities and technicalities, including protests or objection from those in the locality and the neighbours.

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