Is registration of conducting agreement compulsory?
Abdul Latif
(Querist) 15 January 2014
This query is : Resolved
Dear Sir,
We have entered Business Conducting Agreement in Hyderabad. Property is in Hyderabad.
By the Agreement, the owner permits and allows the Conductor ( "We") to enter upon the said premises, fully described in the Schedule written hereunder to conduct the proposed business of restaurant and banqueting facility and conductor has agreed to do so at its own cost and expenses.
Further it is clearly mentioned in the Agreement that It is expressly understood that this Agreement does not confer and is not intended to confer any right of tenancy, sub-tenancy, leave and license or any other right whatsoever in or to the Premises. The Conductor, its servants and agents have been permitted and shall continue to be permitted to enter upon the said Premises during the subsistence hereof for the specific and limited purpose of enabling the Conductor to perform its obligations of conducting, operating and running the said Restaurant, and Banqueting Facility from the said Premises under the terms hereof. It is expressly clarified and declared by the parties hereto that the Conductor has not acquired any right in the said Premises whether as a sub-lessee or tenant of the Lessee. However a right to conduct business in place of the Owner is granted upon the Conductor.
As per my understanding, this Agreement is neither Lease Agreement nor any Leave and License Agreement so we do not need to get the same registered. But the Owner insist on Registration of the same.
Please advise me in this regard.
Thanks & Regards,
Abdul Latif
Pradeep MK
(Expert) 15 January 2014
Only one clause cannot determine the nature of document i.e.Lease or Leave and License. Entire document needs to be examined.
You have not mentioned what consideration you are paying to the owner for use of the premises.
Lots Supreme Court judgement differentiate the lease and license. Since the owner has created some rights in immovable property the documents should be either Lease or Leave and License.
Registration is beneficial to you please go ahead. the issue of payment of stamp duty and registration charges is separate.
Guest
(Expert) 15 January 2014
Well advised by above Expert to follow the same.
Rajendra K Goyal
(Expert) 16 January 2014
Agree with the expert.Registration is beneficial, total agreement need to be seen to decide the nature of the document.
