SRSRSRSRSRSR (ABC) 21 May 2015

Property on lease

Hello Sir, I have taken a Farm (4 Acres) for 10 years from a person and paid him Rs. 4 Lakhs. The deal is signed on a Stamp paper. But now, that person took crop loan for same farm from Credit Society by showing them 7/12. Now, Society says they will deduct the Loan amount with interest directly from bill which will be received from the Sugarcane factory. As the Sugarcane bill shows the farm under that person's name and whichever crop is grown, they will first deduct their amount. Sugarcane is sent to Factory under my name and loan is by his name. Does the Society has right to deduct the amount from my account. Please Advice. Thanks

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3 Replies

bsrao 22 May 2015

If you are the supplier of sugar cane, the society cannot enforce a deduction from the payment due to you from the factory. However, if you have submitted any document to the factory that the sugar cane is part of the standing crop of that land belonging to the owner, then YES,it is decutible.

T. Kalaiselvan, Advocate (Advocate) 25 May 2015

You have a lease agreement on he property and have been gainfully occupied in it, therefore the revenue extracted from it belongs to your since you are regularly remitting the lease amount to the owner. The action of society is illegal, you may issue a legal notice if they insist on it.