Running factory to be transferred to another party after obtaining permission of MIDC. Transferee willing to pay only 20% now on Agreement to Assignment (Unregistered) and nothing at the time of demand/ transfer permission from MIDC and balance 80% at the time of execution of Deed of Assignment.
Request clarification on following points:
1. On receipt of transfer permission, it is said that even if TRANSFEREE never pays remaining amount nor bothers to complete the DEED of ASSIGNMENT, the transfer order of MIDC cannot be cancelled on request by TRANSFEROR alone, as both parties need to submit signed affidavit to MIDC to cancel the same.
2. With the help of Transfer Order, even before the execution of Deed of Assignment, the TRANSFEREE can get water connection, electric connection, possession of the factory and as per MIDC he will be treated as the new owner for all purposes.
3. Parties cannot show AGREEMENT To ASSIGNMENT to MIDC, it is an illegal document as TRANSEROR has no permission yet to talk about TRANSFER/ASSIGNMENT of lease property and MIDC is not party to this as in original lease deed it is clearly mentioned that LESSEE (we) cannot assign our lease to anyone without permission of MIDC. Therefore, this document cannot even be registered with stamp duty and it is common practice to execute it on Rs 500 stamp paper and leave it unregistered.
There is lack of clarity on how the transaction is to be completed, as different opinions are being received from consultants, MIDC staff, retired MIDC experts, and lawyers.
We would be grateful for your valued advise.
