Can old tenants transfer tenancy rights to new party
vineet
(Querist) 24 December 2011
This query is : Resolved
Hi,
can an old tenant of a commercial property whose tenancy is registered under the firms name make a new partner taking xyz amount from the new partner and later withdraw his own partnership and make the new party 100% partner of ABC ltd and let him continue to start a new business without any landlords intervation or legal hassle,
for eg ABC ltd is having a commercial property,and having 100% tenancy right,and there r 2 partners of ABC ltd.
can the 2 partners take the market value of the property and transfer 100% partnership to the new party who's interested in conducting business in the same property
V R SHROFF
(Expert) 24 December 2011
YES. BUT PREFER ONE BY ONE.NOT TOGETHER 2 TO REPLACE TWO.
YES : the 2 partners CAN take the market value of the property and transfer 100% partnership to the new party who's interested in conducting business in the same property
Guest
(Expert) 26 December 2011
Seems to be a hypothetical question, as you have made a mixture of limited company, privately owned firm and the partnership firm with 2 members.
You must know that a limited company must have minimum number of 7 shareholding members. So, where the question arises about a Ltd. company (ABC Ltd.) with 2 partners?
So, you first need to clear what actually is your problem for which you need solution with particular reference to the clarification on the following points:
1) Whether tenant, as per rent/lease deed is in the name of an individual, firm, Private Limited Company, or a Public Limited Company?
2) If in the name of a properietory/ partnership firm or for a company, whether that continues the business with the same name or different name after change in constitution of the firm/company?
prabhakar singh
(Expert) 26 December 2011
Another baffled query.
What is the status of Firm in whose favor the first registered lease is?
Unless the deed is examined personally by me i find your statement suggesting me that it itself is bad if it is a partnership and all the partners have not signed it.Moreover inducting a new partner in the business may amount to sub tenancy under many state laws unless lease deed pre permits creation of sub lease and in which state you r business is located is known to air.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 26 December 2011
Law and landlord do not allow it but there are methods to circumvent and it is a full time job .
You can also do as suggested by Mr shroff .
vineet
(Querist) 26 December 2011
Sorry for the question which is not understood.
I meant was the tenancy is in the name of a firm.cant give the exact name.its ___Auto and is having 2 partners husband and wife.and its a privately owned firm dealing in automobiles spare parts since 1976.the rent receipt is in the firms name.the firm is having 100% tenancy right.as per the agreement made with the landlord its mentioned that the shop was given on rental basis for business purpose.in Marathi its mentioned "aamchi jagaah bhaadyane dhandhya saathi dili aahe".
my questions
1) can this firm ___auto start another business,like apparels or something,or does it have to continue business relating to automobiles only.in the agreement its not mentioned annywhere its given for spare parts business.only in the heading where the premises address is there.under the heading nature of business its mentioned automobiles spare parts.
2)can the 2 partners of ___auto take market value of the premises from new party and make the new party 100% partners of ___auto and let them carry on any business under the name of ___auto as the rent receipt is in ___auto's name.
3)can the landlord create problems for the new party?
thank you all
Advocate. Arunagiri
(Expert) 26 December 2011
As long as your firm is continuing in the premises, you have no problem, you do another additional business, add new partners.
vineet
(Querist) 26 December 2011
Thank u sir
Guest
(Expert) 26 December 2011
Dear Vineet,
Since the tenancy is in the name of a firm and it continues any business in the name of the said firm, any chane in its constitution may not disturb the tenancy right of the firm.
vineet
(Querist) 26 December 2011
Thank u for ur reply sir.
But sir.for e.g. A brand like NIKE conducts business in the premises,can the landlord file a suit for eviction stating that NIKE has nothing to do with automobiles business?
