Cancelation of lease
C S Sharma
(Querist) 24 June 2015
This query is : Resolved
Dear Sir
There are 4 directors in my company, I am one of them.
In year 1995 I gave my land for rent for 30 years.
Now I want discontinue this agreement, because some term not in my favor, like if company fail to repay loan of bank, the bank can sale my property & recover his money. I agreed on faith by mistake.
Now I want cancel this agreement, but a director who signed this agreement is refusing.
Our of 4 director, 1 director is with me & I am also director.
Can I cancel this agreement , if any 1 director sign on stamp?
Or what is procedure to cancelation?
Please help me
Thanks & Regd
C S Sharma
N.A.Karthikeyan
(Expert) 24 June 2015
Dear sir,
you can issue a notice to the company for termination of rental agreement as per exit clause in the Lease agreement. As far as bank is concerned they have right of lien over the property until their loan is repaid. Any one director can sign the agreement based on the authority given by the board of Director through a resolution passed in favour of Director at the meeting of the Board of directors. For proper guidance consult a lawyer along with Documents.
Rajendra K Goyal
(Expert) 24 June 2015
You would remain liable for the loan taken /lease on the said agreement from the Bank or otherwise, till the loan is repaid / new lease entered. Send letter to Bank /owner regarding your intention to retire and hence bank / owner should ask the company to arrange alternative during renewal next time or immediately.
Generally Banks renew the loan of working capital yearly.
C S Sharma
(Querist) 25 June 2015
Thanks for reply Sir
uttamtibrewal@yahoo.com
(Expert) 25 June 2015
Mr CS sharma....
YEs you can terminate the agreement simply via issuing a notice to the company which can be accepted by any one director...
if possible send me the copy of agreement so that after going though the same more better suggestion can be made in regards
C S Sharma
(Querist) 26 June 2015
Dear Uttam Ji
I sent mail at your yahoo address.
Thanks for helping me Sir
C S Sharma
(Querist) 28 June 2015
This lease deed is executed on 3rd day of June 1996 between m/s Vishwakarma stone craft pvt ltd, through their director Sh bhagirath Sharma ages 63 years cast Jangid (hereinafter called the lessee). Which expression shall, unless excluded by or repugnant to the context, include his successors in office, administrators and permitted assing of the first part and SHIR CHANDRA SHEKHAR SHARMA PROP. M/S VISHKARMA GRANITES , KHASRA NO. 111/2 (hereinafter called the lessor) which expression shall unless excluded by or repugnant to the context, include his heirs, successor , administrators and assings of the second part.
Whereas lessor is absolute owner of the land, measuring 5 biga.(hereinafter called “Plot”. After getting this land registered, lessor had got this land converted in to Industrial use..
NOW THIS LEASE DEED WITNESS AS UNDER
1. The, lessor has agreed to give the sais Plot on lease to the lessee for a period of 35 years.
2. The lessee shall pay rent of Rs/-30,000.00 per annum.
3. The lease period shall start from 1st June 1996.
4. The lessee shall be entitled to use the said Plot for industrial/ commercial purpose and entitled to make any temporary or fixed construction.
5. The annual lease rent will be increase after every 5 years by 10% or at the rate mutually agreed to both party.
6. The lessee will pay the annul rent in time, in case of default, the lessor will be entitled for interest of 18% p.a. the outstanding.
7. The lessee shall not be entitled to sublet further said Plot without written consent of the lessor.
8. The lessee shall entitled to take electric, Power, Water connection as pet their requirement.
9. The lessee is entitled to mortgage the said Plot for taking any term loan, working capital loan or any other credit facility in connection with business from any bank or financial institute., for which the lessor shall not have any objection. The lessee is also entitled to mortgage the sais Plot as equitable-mortgage to ant bank or any financial institute for which the lessor shall not have ant objection.
10. During the lease period if lessee fail to repay the loan, the lessor will be bound to increase the lease period for another 25 years on the same term and conditions. In this case the lessor will neither take possession nor evict the lessee from leased property by any means. In this condition the leased deed will be produce before Sub- registrar for further extension of 25 years of lease period.
11. In case the lessee fail to repay the loan amount taken by bank then lessor will not take any legal action not it will interfere against the proceeding of recovery by any of bank and in case of sale of leased property by any of bank such sale will be treated as sale by lessor.
12. The lessee shall be liable to pay any Govt., Semi Govt liabilities or outstanding occurring during the leased period.
13. On expiry of the lease period, if the partied concerned, agree not tot extend lease agreement any further, the lessee shall be entitled to remove movable assets from the sais plot. The lessor shall pay reasonable price of supper structure constructed on the said plot or price agreed between both partied and the lessee will handover possession of plot including super structure to the lessor.
14. Stamp duties and all other expenses for this leased deed will be born by lessee. The original leased deed will be hald by the lessee. Cerificated copy of the leased deed will be held by lessor. The lessee is entitled to mortgage the original leased deed as aquitable-mortgage to any bank for which lessor will not have any objection.
ADV-JEEVAN PATIL, MUMBAI
(Expert) 01 July 2015
Despite retirement by appointment of alternate Director, your liability still exists Provided bank agrees to discharge you and alternate Directors accept full liabily of bank
