Lessor 'A' has given two acres of his own land on lease to a Lessee 'B' to set up industry. 'B' avails loan from a bank to set up his industry and thus 'B' mortgages his leasehold rights to the bank. ‘B’ wants to sub-lease one acre of land out of the said two acres of land to a sub-lessee ‘C’.
1. Is bank’s NOC required to give one acre land on sub-lease basis to sub-lessee ‘C’ ?
2. Is it mandatory to vacate the charge on one acre of land to be given on sub-lease by the bank before giving it on sub-lease to ‘C’. ?
3. Is it legal/general practice to vacate charge by a bank in such cases or it is unwarranted?