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FREDERIC (DIRECTOR)     14 February 2010

Conducting agreement - key advantages/disadvantages

Mr, Mrs,

I am about to start up my restaurant business in Mumbai & I am in discussion with a company to get a location. This company doesn't own the location but rents it. They propose me a conducting agreement. I am a bit skeptical about it. I would have some basic questions:

i/ How can I ensure that this company is entitled to propose me this contract? This company should have a contract with the landlord, right?

ii/ Generally speaking, what are the key features of such a contract? More specifically what are the advantages/disadvantages of such a contract versus a lease agreement?

iii/ Would you have a standard conducting agreement document for a restaurant business?

iv/ What if the contract between this company & the landlord terminates? My conducting agreement continues to be valid or not?

v/ What's the applicable taxation on the conducting agreement fees?

Thanks in advance for your help,

Kind regards,



 4 Replies

FREDERIC (DIRECTOR)     14 February 2010

Mr, Mrs,

I am sorry, I would have an additional question, let's call it, question # 6.

vi/ In the course of this conducting agreement, I get the location & I operate the restaurant. While doing so, I give a new name to the restaurant, let's call it 'Super Byriani'. Does this commercial name 'Super Byriani' owns to me (ie. the conductor) or to the Company?

Thanks in advance for your help,

Kind regards,


Raj Kumar Makkad (Adv P & H High Court Chandigarh)     15 February 2010

1. Obtain the copy of the rent-deed/contract/mortgage-deed/lease-deed what so ever it may be executed between the landlord and the company and get it deeply studied with the help of local engaged counsel and find out whether any term exits therein to sub-lease/sub-mortgage/sub-tenancy etc., if yes only then move ahead otherwise landlord can intiate legal action against you and in that case you shall have to vacate the property.


2. If the company has obtained the land on lease only then sub-lease-deed shall work otherwise contract mentioning the entire facts of the property is a good document. It depends on the facts of your matter which document fits you.


3. Yes. I have.


4. In that case it shall be invalid.


5. In depends over the document to be executed and this cannot be anticipated without having the knowledge of document with the company.


6. It shall belong to you.

1 Like

FREDERIC (DIRECTOR)     16 February 2010

Mr Makkad -

Thanks for your clear & quick reply. I would have few further questions:

1. If I understand correctly, in the contract between the Company and the Landlord, it must be clearly written that the sub-lease is authorized or that the Company has authority to appoint a Conductor. If such a clause doesn't exist, then the Company is not entitled to propose a conducting agreement . Is my understanding correct?

2. Could you please send me a copy of a conducting agreement for restaurant business?

3. In the conducting agreement that the Company proposes me it is written that they will own the licences whereas the Conductor needs to pay for it. I am a bit puzzled. If the conductor pays for it, it needs then to be owned by the conductor and not the company. What do you think?

4. Would you know a lawyer expert in commercial lease / conducting agreement in Mumbai that I could consult?

Thanks in advance for your help,



Rahul Hemdev   23 March 2018

Hi Frederic, I know it�s after 8 Years, but did you get the answers to your reply query that you sent to Mr Thakkar.. I am in a similar situation and this information can be very helpful to me..

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