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Nell Fernandes (retired employee)     03 November 2016

Bank lease agreement

Dear Sir,

We let out our premises to a nationalized bank in April.  They just got the offer letter signed and not any lease deed. we spent several lakhs making the requisite changes, shutters, transformer for the load asked. We didnt realize then it was a wrong decision to give to a psu bank.

The bank till last month did not give us any lease deed.  when we saw the lease deed, we were shocked. it is asking for us to sign 15 years with 15% increment every 5 years but the worst thing is that the first statement says that the bank can at its discretion vacate the premises anytime with just 3 months notice. 

it says several such things like if it needs additional load beyond 15 kv we supplied, we will have to secure and give at our own cost else it will secure itself and deduct from us.  It says that it can sublet the premises to anyone without asking us.  

All the points are in favor of the bank and does not protect the owner anywhere.   

Since we did not sign the lease nor is it registered and we do not want to sign it till the bank removes that 3 months notice clause. it should be applicable then viceversa.  We do not mind the loss but we do not want such a nasty tenant.  the circle office feels that owners are their employees and do not even talk properly.  when they wanted our premises, they ran after us. 

Kindly tell me the legal way to get them evicted immediately. 



Learning

 5 Replies

adv.bharat @ PUNE (Lawyer)     03 November 2016

Repeated query answer to this query is allready given.

adv.bharat @ PUNE (Lawyer)     03 November 2016

No reply to repeated query.

G.L.N. Prasad (Retired employee.)     04 November 2016

The lease agreement is in tune with uniform format for all lease agreements, and for your sake alone, they have not entered any new clauses in the agreement.

Once a format was laid down by the Bank, the subordinate officials can not add / delete any clause in the format.

You may not be knowing the advantages of giving lease to a Bank and your suspicions may be imaginary.  Bank may get premises on lease somewhere, but you can never find any such organisation as tenant better than a commercial bank.

When their entire business is focussed, they have to take their own precautions and Banker is never interested in litigation and always avoids litigation.

The decision is yours.

Nell Fernandes (retired employee)     07 November 2016

Thank you Sir for your response,

Kindly educate me on the benefits of bank tenant. Strong room and transformer cost itself is around 3.5 yrs rent. It is binding for 15 years with rents not being reviewed per market rates.

I googled and found hundreds of stories from owners who have given to banks.On this site itself, there are several stories. If i had come to this site earlier, i would have never given to a PSU bank.

Anyway, since it is given now, have no issues continuing it as long as both parties are protected.  I understand that it is a uniform format but any protection legally should be viceversa. If bank can vacate at its whim, the owner should also be ready to get bank vacated at its whim.  I have already addressed the question to the head-office of the bank and their response today has been emphasizing. Will need to see what they do in review. 

adv.bharat @ PUNE (Lawyer)     15 November 2016

u will be benefited by expert advice.


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