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Reshma (Legal Consultant)     26 May 2011


IT company has leased a building for its business activities. It has engaged small time canteen vendors / cafeteria for the welfare of its employees. MOU is enterend between the company and these vendors. Under the MOU a very meger maintenance charge is been recovered from the vendor only once per annum. The company is not charging any rent from the vendor.

Pl let me know does this amount to sub-letting of the premises ?


 6 Replies

adv. rajeev ( rajoo ) (practicing advocate)     26 May 2011

It does not amounts to sub lletting of the premises, because co., is taking maintenance p.a. and more over for employee co., has to provide everything

1 Like

pervez (adviser)     27 May 2011

I agree with my learned friend's views.. howvever, terms of MOU may have to be looked into before deciding on the same....

1 Like

prabhakar singh (advocate)     27 May 2011

BOTH MR. RAJEEV n MR.PERVEZ rightly opines that it should not be said to be sub letting sofar as it can be inferred from facts put by you.

The co. by allowing to open canteen by vendors has not givenup its possessory control over area used for canteen and this element is crucial to decide if there is subletting or not.This why pervez is insisting to go through draft of MOU as the next element.say rent,is not there as already disclosed by you.

1 Like

Reshma (Legal Consultant)     27 May 2011

Can we execute the MOU on Rs.100/- stamp paper or a company letter head with suffice for the same. Pl suggest.

Shashikant V. Patil (Lawyer)     27 May 2011

Dear Reshma,

You can very well execute MOU on Rs 100/- stamp paper and not to  use Co. letter head to  suffice.   You can use laser paper to suffice.   Also it is informed that, this will not  a subletting, becuase your Co. is having intention to obtain the work and services of canteen  facilities  from those vendor for the welfare of your employees.   Therefore, only maintenance charges  condition  incorporated  in the said MOU  irrespective to the charges more or high to be recovered is a Co. decision.


1 Like

Hirdayanath M Kamble (Service)     27 May 2011

This does not amounts to sublitting, as the activity carried on, in the primises are ancillary activity meant for the welfare of the employees the MOU may have been entered into  by the company just to keep a controll over the canteen person, and charging a merger annual maintanance as stated by you , clearly brings out the fact that the primese is not carring any independent activity  in itself  for which the comp[any is charging rent.

1 Like

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