DPC.doc

HIDAYATULLAH NATIONAL LAW UNIVERSITY

D.P.C.

PROJECT ON

“Prepare a draft of leasedeed!

SU"#ITTED TO #rs. S$ree%a&a Ra%'()ar Pat*l Faculty, HNLU, Raipur

AJAY LA+RA SEC-B Roll-9

DRAFT OF OF LEASE DEED PREPARE A DRAFT

ACKNOWLEDGMENS

At the outset, I would like to express my heartfelt gratitude and thank my teacher, Mrs. Shreejaya Rajkumar Patil for putting his trust in me and giing me a project topic such as this and for haing the faith in me to delier. Mam, thank you for an opportunity to help me grow. My gratitude gratitude also goes out to the staff and administration administration of !"#$ for the infrastructu infrastructure re in the form of our li%rary, I& #a% and my friends that was a source of great help for the completion of this project.

A!A" LAKRA LAKR A

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DRAFT OF OF LEASE DEED PREPARE A DRAFT

ABLE OF CONENS

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%NRODUC%ON

DRAF%NG ? %S MEAN%NG Dra4ti&2 ay * '4i&' a0 t1 0y&t10i0 o4 la3 a&' 4act i& a la&2ua2 4or # &his is the

essence of the process of drafting. All three characteristics rank e'ually in importance. In other words, legal drafting is the crystalli(ation and expression in definitie form of a legal right, priilege, function, duty, or status. It is the deelopment and preparation of legal instr instrum umen ents ts such such as cons consti titu tuti tion ons, s, stat statut utes, es, regul regulat atio ions ns,, ordi ordina nanc nces, es, cont contra ract cts, s, will wills, s, coneyance coneyances, s, indentures, indentures, trusts and leases, etc. &he process of drafting operates in two planes) the conceptual and the er%al. *esides *esides seeking seeking the right words, the draftsman draftsman seeks the right concepts. +rafting, therefore, is first thinking and second composing.

1

Commercial Documents (198!" Stanley Robinson: Drafting Its Application to Conveyancing and Commercial Documents -*utterworths/ -*utterworths/ 0hapter 1, p.23.

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PREPARE A DRAFT OF LEASE DEED

Dra4ti&2, i& l2al 0&0, a&0 a& act o4 prpari&2 t1 l2al 'ocu&t0 li; a2r&t0, co&tract0, ''0 tc$

A proper understanding of drafting cannot %e realised unless the nexus %etween the law, the facts, and the language is fully understood and accepted. +rafting of legal documents re'uires, as a pre4re'uisite, the skills of a draftsman, the knowledge of facts and law so as to put facts in a systematised se'uence to gie a correct presentation of legal status, priileges, rights and duties of the parties, and o%ligations arising out of mutual understanding or prealent customs or usages or social norms or %usiness conentions, as the case may %e, terms and conditions, %reaches and remedies etc. in a self4contained and self4explanatory form without any patent or latent am%iguity or dou%tful connotation. &o collect, consolidate and coordinate the a%oe facts in the form of a document, it re'uires serious thinking followed %y prompt action to reduce the aaila%le information into writing with a legal meaning, open for judicial interpretation to derie the same sense and intentions of the parties with which and for which it has %een prepared, adopted and signed.

OB!EC%8ES • •

&o study the concept of drafting pleading and coneying &o prepare the draft of #ease deed

RESEARCH MEHODOLOG" &he method of research adopted for the project is analytical methodology. 5or the present project releant data and information has %een receied and collected from secondary sources and there has %een use of authentic %ooks and we%sites which proided relia%le information and data.

RE8%EW OF L%ERAURE

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H$ L$ Kuar@0 L2al Dra4ti&2  Do it your0l4, $niersal #aw Pu%lishing 0o. has discussed the concept of #ease deed and its arious forms along with its deed format.

Dra4ti&2 o4 a La0

A deed of lease should %e drafted as a deed %etween the landlord and the tenant. &hey should %e called 6the lesser7 and 6the lessee7 as these are the terms used in the &ransfer of Property Act, 1889. :hile drafting a lease, following points may %e noted) 1. #enerally recitals are not necessary and material facts are mentioned in the operatie part. 9. Consideration Resered rent is mentioned in the %eginning of the $estatum% &he entire consideration, including premium, etc., should %e mentioned. 2. &perative 'art  It shows clearly the lessor diesting himself of possession and the lessee coming into possession, e.g. %y the use of such words as 6&he lessor here%y lets, or demises or grants a lease of, etc., etc. with effect from the ..................... day of ..................7 ;. )abendum  &he nature of the lease, commencement and duration of the <. Reddendum  &his is peculiar to a deed of lease. !ere is mentioned the mode and time fixed for payment. It %egins with the word rendering or paying with reference to the resered rent. Rent is paya%le during the term

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of the lease. Place where paya%le and instalments are mentioned. If there is apportionment of rent that is also mentioned. =. Covenants > &erms and conditions are mentioned in seeral paragraphs. &he usual coenants are to %e found in Section 1?8 of the &ransfer of Property Act/ other important coenants generally refer to payment of taxes, repairs, insurance, su%letting purpose of the lease, e.g. residential purpose, renewal, forfeiture.

Su*-La0

A su%4lease is a demise %y a lessee for lessor term than he himself has. @ery lessee, howeer short his term may %e, make a su%4lease unless he is refrained %y the contract of the tenancy from su%letting. If the demise is for the whole term or for a period %eyond the term, it amounts to assignment. If the lessee diests himself he %ecomes a stranger to the demised property and he has no right to hae possession deliered up to him. It is true that a coenant against su%letting will restrain the assignment, %ut a mere coenant against su%letting does not prohi%it under letting a part of the premises. As long as the lessee remains in possession he may permit another person to use the demised premises without committing a %reach of coenant, namely not to assign, underlet or part with the possession of the demised premises. &he Priy 0ouncil pointed out in )unsrai . *e+oylal Seal ,, that in India a su%4lease is not an a%solute assignment and it was further held in A-s.oy /umar . A-man 0olla  2 that there is no priity of estate as %etween the lessor and the su%4lessee, who does not step into the shoes of the lessee. A su%4lease is not prejudiced %y the surrender of the head lease -Section 11< of &ransfer of Property Act %ut the position is different in the case of forfeiture which annuls all su%4leases except in case of fraud as %etween the lessor and lessee. A su%4lessee is entitled to relief against forfeiture under Section 11; of the &ransfer of Property Act, 1889, which is applica%le only in the case of non4payment of rent. "o relief is open to the su%4lease in case of transfer of %reach of coenant in restraint of transfer.

Surr&'r o4 La00

2 -12?
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Surrender of lease is not a transfer %ut mere yielding up %y the lessee of his interest under the lease to the lessor %y mutual agreement. It is in effect merger of the estate of the lessee into the reersion. It is not a transfer or an assignment of any right or estate within the meaning of Section < of the &ransfer of Property Act - 0a-.anlal . 3agendranat.24. &he person who surrenders is called the surrendered and the person to whom surrender is made is called the surrenderee. A surrender must %e made with clear intention to yield up as mere nonpayment of rent for years together or a%andonment of the site does not amount to surrender - 0isri 5al . Durga 3arain26. A Re'uisition Crder %y the Doernment does not amount to any surrender -$orabai . 'adan C.and =. It may %e expressed or implied. @xcept in a case of some special kinds of lease as re'uired %y special Act, no writing or registration is necessary. A surrender may %e oral, if accompanied %y deliery of possession. 5or the stamp duty of a lease, including an under4lease or su%4lease and agreement to let or su%4let, Article 2< of the Indian Stamp Act, 18 is to %e followed.

Di0ti&ctio& *t3& Lic&0 a&' La0 S. "o 1. 9. 2. ;.

#I0@"0@ A personal non4herita%le right 0reates no interest in the guarantee. "on assigna%le Always permissie and normally

#@AS@ An herita%le right in rem% Interest created in the lessee. $sually assigna%le. Permissie %ut not normally

<. =.

reoca%le. "ot exclusie user +enial of grantorEs title does not

reoca%le. @xclusie user +enial of lessorEs title results in

B.

necessarily result in forfeiture. "o notice necessary to terminate

forfeiture. "otice necessary to terminate

8.

relationship. Instrument granting right does not

relationship. Instrument creating right re'uires

re'uire registration. registration. A lease of immoa%le property is a transfer of a right to enjoy the property for a certain time in consideration for a price paid or promised. &he price paid is called 6rent7. In the case of a licence one person grants another a right to do or continue to do in or upon immoa%le property of the grantor, something which would, in the a%sence of such a right %e unlawful, and such right does not amount to an easement or an interest in the property. &he

4 5 6

-122 =? 0al 2B AIR 1;? All. 21B 62 CWN 176

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underlying assumption in the case of a license remains that the owner continues to %e in possession and control of the property, and it is non4transfera%le, and not exercisa%le een %y serants or agents. A licensorEs transferee of the property is not %ound as such %y the licence, it is reoca%le except in certain cases.

Spci& For0 o4 La00 &he specimen forms of some of lease documents are gien here in %elow which can %e adopted in different situations %y making suita%le modifications as per the needs of an organi(ation) 1. +eed of su%4lease. 9. +eed of lease of land with forfeiture clause and coenants for renewal. 2. Surrender of lease. ;. +eed altering conditionsFcoenants in a lease. <. +eed modifying terms of lease. =. #ease agreement with lessor, lessee and *ank as financing party. B. #ease Agreement for a house -Premises. 8. #ease Agreement for Plant and Machinery

D' o4 Su*-La0 &!IS #@AS@ made this .................. day of .................. 9?19 %etween A* of, etc. -hereinafter called 6the su%4lessor7, of the one part, and 0+ of, etc. -hereinafter called 6the su%4lessee7, of the other part. :!@R@AS *y a lease -hereinafter referred to as 6the original lease7 dated............... the day of ..................... and made %etween GH as owner and A* as lessee and registered in *ook I, ol. ............ pages ............... to %eing "o ............... for the year .................... in the Cffice of Su%4Registrar of ........................ etc., the premises -or, etc. descri%ed in the original lease were demised to the said original lessee for a period of .................... years with effect from

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the ..................... day of..................... on a yearly rent and su%ject to the coenants and conditions to %e performed and o%sered as therein contained. A"+ :!@R@AS the original lessee has agreed to grant and the su%4lessee has agreed to accept a su%4lease of the premises -or, etc. hereinafter descri%ed upon the conditions hereinafter contained) "C: &!IS +@@+ :I&"@SS@S that in consideration of the rent hereinafter resered and the coenants %y the su%4lessee hereinafter contained, the original lessee do here%y grant to the su%4lessee a lease of A## &!A& premises -or, etc. known %y the name of, etc., and situate at, etc., together with the appurtenances/ &C !C#+ the same unto and to use of the su%4lessee for the period of .............. years commencing with effect from the ............... day of ............... at the monthly rent of Rupees ........................ S$*J@0& to the following conditions) 1. &he su%4lessee here%y agrees with and coenants with its lessor, i(., the lessee as follows) -a &o pay the said rent, clear of all deductions, on the............ day of.............. eery current month in adance during the term of the lease. -% &o pay all taxes and outgoings now paya%le or hereafter to %ecome paya%le in respect of the leased premises -or, etc.. -c &o keep the said premises -or, etc. in good and tenanta%le repair, and not to make any alteration therein without the written consent of the landlord. -d &o perform all the coenants, conditions and stipulations contained in the original lease affecting the property here%y leased and to %e o%sered and performed %y the original lessee except payment of rent and not to do, execute or perform any act, deed or thing or suffer anything to the contrary where%y or %y reason or means whereof the original lease may %e aoided or forfeited and to allow the original lessee to enter upon the leased premises -or, etc. for the purpose of inspection of the premises and performing any of such terms of agreement contained in the original lease, which may %e necessary to preent its forfeiture.

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-e &o keep the original lessee indemnified against all actions, claims, demands and expenses on account of performance or non4performance %y the su%4lessee -of any of the terms, conditions and stipulations of this agreements. 9. &he original lessee does agree and coenant with the su%4lessee as follows) -a &hat upon the su%4lessee paying the rent here%y resered and o%sering and performing the conditions and coenants herein contained, shall 'uietly and peacefully possess and enjoy the property, here%y leased during the said term without any interruption and distur%ance %y the original lessee or any person claiming under or in trust for him, proided that in case of any %reach of any of the conditions and coenants to %e o%sered and performed %y the su%4lessee, the lease shall, at the option of the original lessee, stand determined who shall %e entitled to repossess the property as his former estate without prejudice to his right to recoer all arrears of rent andFor any damages for %reach of such conditions or coenants. -% &he original lessee shall duly and punctually pay the rent resered, o%sere and perform all the coenants and conditions contained in the original lease, and keep the same alie and in full force and irtue and will further, ......... times, keep the su%4 lessee and his estate indemnified against all actions, claims, proceedings and demands on account of any %reach of any of the conditions and coenants contained in the original lease. -c &he original lessee acknowledges the right of the su%4lessee as to production of the original lease and to deliery of copies thereof and undertakes for the safe custody thereof. 2. It is further agreed that the terms 6the original lessee7 and 6su%4lessee7 used herein shall, unless inconsistent with the context, include as well their respectie successors and assigns.

I" :I&"@SS, etc., Signed2 sealed and delivered ,

<)= D' o4 La0 o4 La&' 3it1 For4itur Clau0 a&' Co&a&t 4or R&3al

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&!@ #@AS@ is made the.................. day of.................. 9?19 *@&:@@" A* of, etc.) -hereinafter called 6the lessor7 of the one part and 0+ of, etc., -hereinafter called 6the lessee7 of the other part, :I&"@SS@S as follows) 1. In consideration of the rent hereinafter resered and the coenants and conditions hereinafter contained to %e o%sered and performed on the part of the lessee, the lessor does here%y grant, transfer, demise %y way of lease to the lessee A## &!A& piece or parcel or parcels of land descri%ed in the schedule %elow &C !A@ A"+ &C !C#+ the same unto and to the use of lessee for the term ofKKKKK years commencing from theKKKKK day ofKKKKK 9?19 at the annual rent of RupeesKKKKK 9. &he lessor here%y coenants with the lessee as follows) -a &he lessor shall put the lessee in possession of the said land on the saidKKKKK day ofKKKKK 9?19. -% $pon the lessee paying the rent here%y and hereunder resered and o%sering and performing the coenants and conditions herein contained the lessee shall 'uietly and peacefully hold, possess and enjoy the said land during the said term without any claim, interruption or distur%ance %y the lessor or any person claiming under or in trust for him. -c &he lessor has good right, full power and a%solute authority to grant a lease of the demised premises in the manner hereunder effected. 2. &he lessee here%y coenants with the lessor as follows) -a &he lessee shall pay the said rent without a%atement or deductions on or %efore theKKKKK day ofKKKKK eery year and the first of such payments shall %e made on theKKKKK day ofKKKKK 9?19. -% &he lessee shall %ear and pay all rents, taxes and other assessments and outgoings which are now or may hereafter %e imposed or assessed on the said land except those which are paya%le in law %y the lessor.

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-c &he lessee shall not use and occupy the said land for any purpose other than priate residence for himself and the mem%er of his family %y construction of temporary structures according to the plan approed %y the Municipal Authority. -d &he lessee shall not, except with the consent in writing of the lessor first had and o%tained, assign, underlet or part with the possession of the said land or any portion thereof or of the structures to %e constructed thereon or any portion thereof which consent the lessor may at his a%solute discretion withhold. -e &hat if the lessee shall pay the rent punctually and regularly and duly o%sere and perform the conditions and coenants herein contained and apply in writing to the landlord not less thanKKKKK months prior to the expiration of the term herein resered for renewal of the lease, the lessor shall then and in such an eent grant to the lessee a new lease of the said land for a further period ofKKKKK years on the same terms and conditions as are herein contained except the coenant for renewal and su%ject to such ariations as may %e mutually agreed. -f Cn the determination of the lease, the lessee shall delier peaceful acant possession of the land here%y demised as also the structures to %e erected %y the lessee without claiming any compensation or alue thereof.

I" :I&"@SS, etc., Signed2 sealed and delivered KKKKKA* KKKKK0+ $.e Sc.edule above referred to

/= D' o4 Surr&'r o4 La0 &!IS +@@+ C5 S$RR@"+@R C5 #@AS@ made theKKKKK day ofKKKK *@&:@@" A* of, etc. -the lessee, of the one part and 0+ of, etc. -the lessor of the other part. :!@R@AS %y an Indenture datedKKKKK made %etween the parties hereto and registered inKKKKK it was witnessed that the said 0+, did in consideration of the rent there%y and there under resered and of the coenants and conditions to %e o%sered and performed on the part of the said A* as therein contained granted and demised %y way of

12 | P a g e


lease the property fully mentioned and descri%ed in the schedule hereto for a term ofKKKKK years. A"+ :!@R@AS such lease is in full force and irtue and all rents and conditions resered %y and contained thereunder on the part of the lessee to %e paid, o%sered and performed %y the said A* upto the date of these presents. A"+ :!@R@AS the lessee was at all material times and is presently in possession of the property since the execution of the lease. A"+ :!@R@AS for personal reasons and consideration, the said A* haing desired to %e relieed from any further payment of such rent and performance of the coenants and conditions approached the said 0+ for a surrender of the said lease and deliery of the possession of the property. A"+ :!@R@AS the said 0+ has agreed to accept from the said A* a surrender of the aforesaid lease of the said premises "C: &!@ +@@+ :I&"@SS@S that in pursuance of the said agreement and in consideration of a sum of RsKKKKK %eing the token consideration paid %y the said 0+ to A*, the said A* as %eneficial user of the said property do here%y gie up and relin'uish all his leasehold estate and interest in and surrender and delier possession to the said 0+ of the premises -or, etc. comprised in and %y the said deed of lease &C !C#+ the same as %efore execution of the lease %y the said 0+ &C !C#+ &!@ I"&@"& and o%ject that the same shall stand determined to all intents and purposes and that the residue of the said term ofKKKKK years created %y the said deed of lease, and all other rights and interests of the said A* in the said premises -or, etc. under or %y irtue of the said deed shall stand extinguished and merged in the reersion freehold and inheritance of the premises with immediate effect as if the said lease was neer granted nor intended. A"+ &!IS I"+@"&$R@ further witnesses that in consideration of the surrender of the lease which is accepted %y the lessor he the said 0+ do here%y release and discharge the lessee A*, his successor and estate from all claims, demands and lia%ilities on account of future rent and or arising out of performance or nonperformance or herein%efore recited Indenture of lease. I" :I&"@SS :!@R@C5 the parties a%oe named hae put their signatures the day and year a%oe.

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Signed2 sealed and delivered KKKKKA* KKKKK0+ $.e Sc.edule above referred to

(= D' Altri&2 Co&'itio&0 i& a La0 &!IS +@@+ made theKKKKK day ofKKKKK*@&:@@" A* of, etc. -thereafter called Lthe landlordL of the one part and 0+ of, etc. -thereinafter called Lthe tenantL, of the other part. :!@R@AS %y a lease -hereinafter called Lthe principal deedL, dated theKKKKK day ofKKKKK and made %etween the parties hereto and registered atKKKKK Registration office in *ook "oKKKKK

olume

"oKKK

pagesKKKKK

toKKKKK *eing "oKKKKK for the yearKKKKK, the said A* granted and demised to 0+ the house -or, etc. situate at, etc. A"+ :!@R@AS the parties hereto hae agreed to alter and modify the terms and conditions of the principal deed in the following manner "C: &!IS +@@+ :I&"@SS@S as follows) 1. Su%4clause -e of clause 9 -or, etc. of the principal deed, the following su%clause shall %e omitted and shall cease to hae any effect. 9. 5or su%4clause -% of clause 9 -or, etc. of the principal deed, the following su%4clause shall %e su%stituted, namely) -Set out the new su%4clause 2. &hat as altered and modified as aforesaid the principal deed shall remain in full force and effect. I" :I&"@SS :!@R@C5 etc.,

7itnesses

KKKKKA* KKKKK0+

<.= D' Mo'i4yi&2 r0 o4 La0 14 | P a g e


&!IS +@@+ made theKKKKK day ofKKKKK *@&:@@" A* of, etc. -hereinafter called Lthe lessorL, of the one part and 0+ of, etc. -hereinafter called Lthe lesseeL other part %eing supplemental to the deed of lease -hereinafter called Lthe Principal +eedL, dated theKKKKK day ofKKKKK and made %etween the same parties %eing a lease of a house -or, etc. situate at etc. "C: &!IS +@@+ :I&"@SS@S as follows) 1. &he lessor shall forthwith erect and construct and will complete on or %efore theKKKKK day ofKKKKK to the reasona%le satisfaction of the lessee, a room -or, etc. and other additions to the premises leased under the Principal +eed, in accordance with the plans and specifications, copies whereof hae for the purpose of identification %een signed %y the lessor and the lessee. 9. In consideration of the premises, the lessee here%y agrees with the lessor that as from theK.KKKKK day ofK.KKKKK he, the lessee will pay to the lessor during the residue of the term granted %y the lease under the Principal +eed, the additional yearly rent of RsK..KKKKK, such additional rent to %e paid %y e'ual 'uarterly -or monthly payments on the same days and in the same manner as are proided %y the Principal +eed for the payment of rent there%y resered, the first of such payment to %e made on the rights and remedies of the lessor shall %e applica%le to the said additional rent. 2. 5rom and after the completion of the said additions and works to %e erected and constructed %y the lessor as aforesaid, the agreements and conditions contained in the Principal +eed shall apply thereto in the same manner as if the said additions and works had %een completed prior to the grant of the lease %y the Principal +eed. I" :I&"@SS :!@R@C5 etc., Signed2 sealed and delivered KKKKK0+ KKKKKA* $.e 'lans2 etc% above referred to

15 | P a g e


<5= La0 A2r&t 3it1 L00or, L00 a&' Ba&; a0 Fi&a&ci&2 arty &!IS &RIPAR&I&@ ADR@@M@"& thisKKKKKKKKKK day ofKKKKK -month KKKKK -year in words KKKKK *@&:@@"KKKKK an existing 0ompany within the meaning of the 0ompanies Act, 1<= and haing its registered office atKKKKK -hereinafter called Lthe #essor 0ompanyL which expression shall unless excluded %y or repugnant to the context %e deemed to include its successors and assigns of the first part, KKKKKa 0ompany incorporated under the 0ompanies Act, 1<= and haing its registered office atKKKKK -hereinafter called Lthe #essee 0ompanyL which expression shall unless excluded %y or repugnant to the context %e deemed to include its successors and assigns of the second Part A"+KKKKK a nationali(ed *ank carrying on %usiness amongst other places in India atKKKKK -hereinafter called Lthe *ankL which expression shall unless excluded %y or repugnant to the context %e deemed to include its successors and assigns of the third part/ :!@R@AS under an Agreement for !ypothecation datedKKKKK executed %y the #essor 0ompany in faour of the *ank, the *ank granted to the #essor 0ompany a sum of RsKKKKK as and %y way of adance in current account to ena%le the *orrower to purchaseKKKKK -hereinafter referred to as Lthe said e'uipmentL for the purpose of leasing out the said e'uipment to the #essee 0ompany, inter alia, secured %y hypothecation of the said e'uipment upon the terms and conditions therein contained/ A"+ :!@R@AS the #essor 0ompany has entered into an Agreement for #ease with the #essee 0ompany on theKK day ofKK for leasing out the said e'uipment to the #essee 0ompany su%ject to the payment of rentFhire charges there%y resered and also su%ject to the other terms and conditions therein contained/ A"+ :!@R@AS in terms of the sanction of the *ank, the *ank will allow the#essor 0ompany to grant lease of the said e'uipment to the #essee 0ompany, interalia, upon the following conditions) -a that the lease of the said e'uipment is to %e granted %y the #essor 0ompany to the #essee 0ompany with the consent of the *ank and the #essee 0ompany should

16 | P a g e


confirm that the said e'uipment is su%ject to the *anks charge under the said Agreement for !ypothecation datedKKKKK/ -% the #essee 0ompany should undertake the *ank that it would not assign the leasehold interest of the said e'uipment for any reason whatsoeer/ -c that the #essee 0ompany shall undertake the *ank that the #essee 0ompany shall not hae any claim on the moneys to %e realised under the insurance policies to %e taken out in respect of the said e'uipment/ -d that the #essee 0ompany should directly pay to the *ank the rentFhire charges and interest paya%le %y the #essee 0ompany to the #essor 0ompany in terms of the said Agreement for #ease datedKKKKK/ -e the *ank through its officers, agent and nominee %e entitled to inspect the said e'uipment at such time as the *ank may think fit/ -f that the #essor 0ompany shall execute a +eed of Assignment in faour of the *ank irreoca%ly authorising the *ank to collect rentFhire charges to %e paid %y the #essee 0ompany to the #essor 0ompany towards li'uidation of the moneys adanced %y the *ank to the #essor 0ompany and all interest accrued thereon. A"+ :!@R@AS with a iew to recording the conditions herein%efore proided, the parties hereto hae agreed to enter into an agreement %eing these presents inthe manner hereinafter appearing. "C: &!IS ADR@@M@"& :I&"@SS@&! and it is here%y agreed and declared %y and %etween the parties hereto as follows) 1. &he lessee 0ompany here%y confirms that the said e'uipment is su%ject to the hypothecationFcharges created %y the #essor 0ompany in faour of the *ank under the Agreement for !ypothecation datedKKKKK 9. &he #essee 0ompany here%y undertakes the *ank not to deal with the said e'uipment which will prejudice the interest of *ank and not to assign or transfer the %enefit of the said Agreement of #ease datedKKKKK

17 | P a g e


2. &he #essee 0ompany here%y undertakes the *ank that the #essee 0ompany shall not hae any claim on the moneys to %e realised under the insurance policies to %e taken out in respect of the said e'uipment. ;. &hat the #essor 0ompany here%y irreoca%ly and unconditionally authori(es the #essee 0ompany to pay all the rentFhire charges paya%le %y the #essee 0ompany to the #essor 0ompany in terms of which the #essee 0ompany here%y confirms and acknowledges. <. &he #essee 0ompany here%y irreoca%ly and unconditionally agrees, confirms and declares that irrespectie of any disputes %etween the #essor 0ompany and the #essee 0ompany as regards terms, conditions and coenants contained in the Agreement for #ease datedKKKKK, the #essee 0ompany shall directly pay to the *ank rentFhire charges and interest thereon paya%le %y the #essee 0ompany to the #essor 0ompany in terms of the Agreement for #ease datedKKKKK =. &he #essor 0ompany and the #essee 0ompany here%y jointly declare and confirm that the *ank through its officers, agent and nominees will %e entitled to inspect the said e'uipment which will %e in the possession of the #essee 0ompany in terms of the Agreement of #ease datedKKKKK and to take possession thereof if the *ank so thinks fit. B. &hat the #essor 0ompany and the #essee 0ompany here%y also jointly agree and confirm that it would not amend, alter andFor modify any of the terms, conditions and coenants contained in the said Agreement for #ease datedKKKKK without the prior permission of the *ank in writing. 8. &he #essee 0ompany here%y also confirms and declares that if the #essee 0ompany fails to pay the rentFhire charge to the *ank in terms of these presents, the *ank will %e at li%erty to take possession of the said e'uipment if the %ank so desires to protect the interest of the *ank. . &he #essee 0ompany here%y agrees that the said e'uipment will %ear the seal LhypothecatedKKKKKKKKKK *ankL "C: &!IS ADR@@M@"& 5$R&!@R :I&"@SS@&! as follows

18 | P a g e


-a &hat in pursuance of the said agreement and in consideration of the premises aforesaid, the #essor 0ompany as %eneficial owner here%y transfers and assigns up to the *ank all the rentFhire charges paya%le to the #essor 0ompany %y the #essee 0ompany under the Agreement for the #ease datedKKKKK together with power for the *ank to sue, call up or recoer and gie effectual discharge for the same in the name of the #essor 0ompany or otherwise. -% &hat the #essee 0ompany here%y agrees to pay duly and punctually allrentsFhire charges paya%le %y the #essee 0ompany to the *ank under the said Agreement for #ease datedKKKKK and upon such payment to the *ank the #essee 0ompany shall %e fully discharged from its o%ligation for payment of the rentsFhire charges to the #essor 0ompany under the said Agreement for #ease datedKKKKK -c &hat the *ank upon receipt of the rentsFhire charges mentioned a%oe shall %e at li%erty to adjust and appropriate the said rentsFhire charges in li'uidation of the amounts due and paya%le for principal and interests for the loan granted under the said Agreement for !ypothecation datedKKKKK -d &hat the #essor 0ompany here%y coenants with the *ank that the #essor 0ompany has not receied any rentFhire charges in adance nor any deposit or adance or premium from the #essee 0ompany adjusta%le against the said rentsFhire charges. 1?. It is here%y expressly agreed and declared %y and %etween the parties hereto that all the terms, conditions and coenants herein contained shall oerride the terms, conditions and coenants contained in the Agreement for !ypothecation datedKKKKK and the Agreement of #ease datedKKKKK to the extent the same are inconsistent. I" :I&"@SS :!@R@C5 the parties hereto hae executed these presents on the day, month and year first a%oe written. &!@ 0CMMC" S@A# C5KKKKK has hereunto %een affixed pursuant to the resolution passed %y the *oard of +irectors of the 0ompany on the day ofKKKKK in the presence of MrKKKKK and MrKKKKK two of the directors of the 0ompany who hae executed these presents in token of their presence in the presence of) SID"@+ A"+ +@#I@R@+ for and on %ehalf ofKKKKK %y MrKKKKK 0onstituted Attorney under the Power of Attorney datedKKKKK in the presence ofKKKKK

19 | P a g e


<6= La0 A2r&t 4or a Hou0 <ri00= !IS #@AS@ made onKKKKK day ofKKKKK %etween A*KKKKK -hereinafter called Lthe lessorL -the expression shall include the owner for the time %eing of the lessors interest in demised premises of the Cne Part and 0+KKKKK -hereinafter called Lthe lesseeL -the expression shall include his heirs, executors, administrators and permitted assigns of the other. &!@ +@@+ &!@R@5CR@ :I&"@SS@&! AS 5C##C:S)

1. &he lessor here%y demises to the lessee all that dwelling house with the land fully descri%ed in the Schedule hereto together with all out houses, wells, motor garage, kitchen, pathways, passage, garden and other appurtenances thereof situate atKKKKK to hold the same to the lessee form theKKKKK day ofKKKKK for the term ofKKKKK years -or year to year paying therefor during the said term the monthly rent of RsKKKKK -RupeesKKKKK paya%le on the first day of the month succeeding that for which the rent is due. 9. #essees o%ligation) -i

&he lessee here%y agrees that he will, during the said term -tenancy, pay all rents, taxes and other charges excluding the house tax which now are or may hereafter %ecome paya%le in respect of the demised property/

-ii

Pay Municipal charges including water %ills and electric %ills, etc.

-iii

&hat he will not without the preious consent in writing of the lessor transfer or su%let or otherwise part with possession of the demised premises.

-i

&hat he will, without the consent in writing of the lessor, use the demised premises for residential purposes and for no other purpose. 2. #essorEs o%ligations)

-i

&hat he will during the said term -tenancy maintain the demised premises in good and ha%ita%le condition and shall execute all necessary repairs including annual white4washing and colour washing, plastering, painting, etc. and shall renew all %roken panes, fittings, %olts, etc. and on les sees giing the lessor notice in writing of any decay, defects, disorders, will, within one calendar month from the receipt of such notice, repair and amend the same.

20 | P a g e


-ii

&hat he will, during the said term -tenancy, maintain the electric installation in the said premises and supply at his own expense such electric fans as may %e re'uired %y the lessee.

-iii

&hat he will carry out all immediate necessary repairs to the said premises to the entire satisfaction of the lessee.

-i

&hat the lessor shall repair, when necessary, the well, the passages, pathways and the road connecting the pu%lic road with the %ungalow here%y demised. ;. Proided always and it is here%y agreed as follows)

-i

&hat wheneer any part of the rent here%y resered shall %e in arrears forKKKKK months after due date or there shall %e a %reach of any of the coenants %y the lessee hereincontained, the lessor may re4enter on the demised premises and determine this lease.

-ii

&hat the tenancy here%y created shall %e determina%le at the option of the lessorFlessee -or either party %y giing to the lessorFlessee -or the other party KKKKK calendar months notice in writing. <. It is here%y agreed %etween the parties as follows)

&hat the demand for payment or notice re'uired to %e made upon or gien to the lessee shall %e sufficiently made or gien if sent %y the lessor or his agent through the post %y registered letter addressed to the lessee at the demised premises -or, atKKKKK and, that notice re'uiring to %e gien %y the lessor shall %e sufficiently gien if sent %y the lessee through the post %y registered letter addressed to the lessor at his usual or last known place of residence or %usiness -or, atKKKKK and that any demand or notice sent %y post in either case shall %e assumed to hae %een deliered in the usual course of post. I" :I&"@SS :!@R@C5 the parties hereto hae hereunder signed this deed on the dates mentioned against their respectie signatures. Signed, sealed and deliered KKKKKA* KKKKK0+

<7= La0 A2r&t 4or la&t a&' Mac1i&ry

#@SSCR)

-insert name and address

#@SS@@)

-insert name and address

+A&@)

21 | P a g e


1. #@AS@) &he lessor here%y agrees to lease to #essee and the #essee here%y agrees to take on #ease from #essor, su%ject to the terms of this #ease Agreement -hereinafter referred to as the LADR@@M@"&LKKKKKKKKKK -write %rief title of the asset -hereinafter referred to as the L@N$IPM@"&L descri%ed in the Schedule annexed hereto. 9. P@RIC+) &he #essee shall take the e'uipment for its use on lease for the term to commence from the date of payment %y the #essor to the supplier and to terminate at the end ofKKKKK months from the date of such commencement. &he period of lease may %e extended for such period and on such terms and conditions as may %e agreed upon %y and %etween the parties hereto. -Su%ject to the concurrence of #essors *ankers. 2. R@"&A#) In consideration of the a%oe, the #essee shall pay to the lessor, #ease rent at the rate specified in the Schedule hereunder written for the entire period of the #ease. Such rent shall %e paya%le %y the #essee to the #essors designated *ankersKKKKK -insert the name of %ankers for and on %ehalf of the #essor3 within seen days of the same %ecoming due and paya%le. &he lease rent shall %e due and paya%le on the first day of each calendar month, commencing from the calendar month in which the period of lease commences, proided that the lease rent for the calendar month in which the period of lease commences shall %ecome paya%le on the commencement of the lease period. #essee will pay on demand as late charges, an amount e'ual to two per cent -9O per month of each instalment of lease rent or part thereof that remains unpaid for a period of more than seen -B days. It is expressly understood %y the parties hereto that time shall %e the essence of this Agreement, in so far as it relates to the o%ligations or commitments of the lessee. ;. :ARRA"&I@S) &he #essee has made the selection of the @'uipment %ased upon its own judgement prior to the purchase thereof %y the #essor and expressly declares that it has not relied upon any statements or representations made %y #essor, makes no express or implied warranties including those of merchanta%ility or fitness for particular use of the @'uipment and here%y disclaims the same. &he #essor shall not %e responsi%le for any repairs, serice or defects in the @'uipment or the operation thereof. !oweer, the #essor agrees that #essee shall %e entitled to the %enefits of the manufacturers warranties in respect of the @'uipment. <. <. &I&#@, I+@"&I5I0A&IC", C:"@RS!IP C5 @N$IPM@"&) "o right, title or interest in the @'uipment shall pass to #essee %y irtue of these presents. 0onditioned upon #essees compliance with and fulfilment of the term of conditions of this

22 | P a g e


Agreement, the #essee shall hae the right to hae and retain possession and use of the @'uipment for the full term of lease including the extended term if agreed to. #essor may re'uire plates or makings to %e affixed to or placed on the @'uipment, indicating #essors interests therein -and the interests of its *ankers. #essor and #essee here%y confirm that their intent is that the @'uipment shall at all times remain the property of the #essor. #essee also agrees and undertakes not to sell, assign, su%let, pledge, hypothecate or otherwise encum%er or suffer a lien upon or against any interest in this Agreement or the @'uipment, or to remoe except for the purposes of repairs with prior intimation to the #essor the @'uipment from the factory or office site where originally put to use or allow any third person to use the e'uipment without the prior consent of the #essor in writing. =.

&he e'uipment hereunder leased, will %e deliered %y the manufacturersF suppliers to the location specified %y #essee. #essor shall not %e responsi%le for any damage incurred to the @'uipment during deliery. #essor will re'uest the manufacturersFsuppliers to effect deliery on or %efore the date of commencement of the renta%le, %ut if for whateer reasons, deliery is not affected %y the manufacturersFsuppliers %y the date, lessor shall not %e lia%le for any loss suffered %y the #essee there%y. #ease rentals shall %e deemed to commence from the date of dis%ursement for the actual purchase made with the consent of the lessee.

B.

I"+@M"I&H) #essee agrees to comply with all laws, regulations and orders relating to the possession, operation, and use of the @'uipment and assumes all risks and lia%ilities arising from or pertaining to the possession, operation or use of the @'uipment. #essee does here%y agree to indemnify and keep indemnified and hold safe and harmless the #essor from and coenants and undertakes to defend #essor against any and all claims, costs, expenses, damages and lia%ilities whether ciil or criminal, of any nature whatsoeer, arising from or pertaining to the use, possession, operation or transportation of the @'uipment. Any fees, taxes or other lawful charges paid %y #essor upon failure of #essee to make such payments, shall %ecome immediately due from #essee to make such payments, shall %ecome immediately due from #essee to #essor. #essee further coenants and undertakes to indemnify and keep indemnified the #essor against loss of @'uipment %y sei(ure %y any person other than the #essor for any reason whatsoeer, or resulting from any form of legal process initiated %y any person other than the #essor, proided that such indemnity shall not coer such loss as arises out of any neglect or default on the part of the #essor. #essee further agrees to indemnify and keep indemnified the lessor

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against all risks and lia%ilities whether ciil or criminal, arising from the possession, use, operation or storage of the @'uipment and for injuries or deaths of persons or damage to property arising from the a%oe. 8. $S@, I"SP@0&IC") #essee will cause the @'uipment to %e operated in accordance with manufacturers manuals or instructions, if any, and in so far as applica%le %y competent and duly 'ualified personnel only and in accordance with applica%le Doernment regulations, if any, and for %usiness purposes only. #essor shall hae the right from time to time during the normal %usiness hours on any working day to enter upon #essees premises or elsewhere after prior notice for the purpose of confirming the existence, condition and proper maintenance of the @'uipment. . R@PAIRS, #CSS A"+ +AMAD@) +uring the term of the #ease and any renewal thereof, #essee, at its own cost and expenses will keep all @'uipments in good repair, condition and working order and shall furnish all parts, mechanisms, deices and sericing re'uired thereof. All such parts, mechanisms and deices shall immediately %e deemed part of the @'uipment for all purposes hereof and shall %ecome the property of the #essor. In the eent, any item of @'uipment is lost, stolen or destroyed or damaged %eyond repair for any reason, #essee shall promptly pay the #essor the instalments of lease rentals then remaining unpaid less insurance claims receied %y #essor, in respect of insurance effected in pursuance of this Agreement, whereupon #essor will transfer to #essee, without recourse of warranty, all of #essors right, title and interest, if any, in such items. If, howeer, the insurance claim receied %y the #essor exceeds the amount of unpaid rentals, the #essor shall forthwith pay the difference to the #essee. 1?. I"S$RA"0@) #essee shall o%tain and maintain for the entire term of this Agreement at its own expense, comprehensie insurance against loss or destruction or damage to the @'uipment including without limitations destruction or loss %y fire, theft and such other risks or loss as are customarily insured against on the type of @'uipment leased hereunder and %y %usinesses in which #essee is engaged and in such amounts as shall %e satisfactory to lessor, proided howeer that the amount of insurance against loss or destruction or damage to the @'uipment shall not %e less than the greater of the full replacement alue of the @'uipment or the instalments of lease rentals then remaining unpaid hereunder plus any renewal options entered into pursuant to this Agreement. @ach insurance policy will name #essee as insured and note #essors -and its *ankers interests as loss payee. #essee

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shall furnish to #essor a certificate of insurance or other satisfactory eidence that such insurance coerage is in effect. 11. 5$R&!@R ASS$RA"0@) -a +uring the term of this Agreement, #essee shall proide if so asked for %y #essor annual audited accounts of the #essee. -% #essor here%y coenants that the @'uipment is the a%solute property of the #essor and undertakes not to sell or transfer the same to any party except as to hypothecate, mortgage or create a charge in faour of a *ank or 5inancial Institution. &he #essor shall inform the #essee of any such mortgage or hypothecation. -c #essee irreoca%ly agrees that the lease rentals will %e increased %y any incremental taxes, if any, whether Sales &ax or @xcise +uties or any other related and conse'uential charges, if any, leied on this transaction now or hereafter as also %y any increase in purchase price of the asset in the interening period %etween placement of the order and its acceptance and the eentual deliery of the @'uipment. &he lease rentals hae %een stipulated in the assumption that the lessor shall %e entitled to claim in his income tax assessment inestment allowance 9
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that such payment to the *ankers or 5inancial Institution made %y the #essee of the sums due under this Agreement, shall %e considered as haing %een paid to the #essor, towards the #essors dues hereunder. In that eent, the *ank shall hae no right of recourse to possession of @'uipment so long as the #essee meets with lease rental payments falling due under this Agreement. -f &he #essor here%y agrees to inform its *ankers a%out this arrangement and o%tain their confirmation to the same. 19. S$RR@"+@R) $pon expiration or earlier termination of the lease, #essee shall delier to the #essor the said @'uipment at such a place as #essor may specify in good repaira%le condition and working order, normal wear and tear resulting from the proper use of the @'uipment and damage %y fire not caused %y the negligence of the #essee shall %e excepted. 12. @@"&S C5 +@5A$#&) An eent of default shall occur hereunder if #essee) -a fails to pay any instalment of lease rentals or part thereof or other payment re'uired hereunder when due and such failure continues for a period of 1? days after written notice is sent from #essor/ or -% fails to perform or o%sere any other coenant condition or agreement to %e performed or o%sered %y it hereunder or %reaches any representation or proision contained herein or in any other document furnished to the #essor in connection herewith and such failure or %reach continues unreel died for a period of ten days -if such %reach is capa%le of %eing remedied within ten days after written notice is sent from the #essor/ or -c without #essors consent, attempts to remoe -except for repairs, sell, transfer, encum%er, part with possession or su%let any item of @'uipment/ or -d shall commit an act of %ankruptcy or %ecome insolent or %ankrupt or make an assignment for the %enefit of creditors, or consent to the appointment of a &rustee or Receier or either shall %e appointed for #essee or for su%stantial part of its property without its consent, or %ankruptcy, reorgani(ation or insolency proceedings shall %e instituted %y or against #essee/ or -e shall suffer an aderse material change in the financial condition from the date hereof, and as a result thereof #essor deems itself or any of its e'uipment to %e insecure/ or -f shall %e in default under any other agreement at any time executed with #essor.

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1;. R@M@+I@S) $pon the occurrence of any default and at any time thereafter the #essor would declare all future rentals due and to %ecome due hereunder for the full term of the lease immediately due and paya%le and on such declaration %eing made %y #essor, #essee shall forthwith proide to the #essor the present alue of the said sums due discounted at the rate of 19O per annum and upon #essee failing to make the said payment within 2? days thereof #essor may in its discretion do any one of the following) -a &ake action for recoery as li'uidated damages for loss of %argain and not as penalty, of any amount e'ual to all unpaid lease rental payment which in the a%sence of a default would hae %een paya%le %y #essee hereunder for the full term thereof plus interest thereon at the rate of 9O p.m. for the period until receipt of the said amount/ -% $pon notice to #essee terminate this Agreement and all Schedules executed pursuant hereto and forfeit the amounts paid %y #essee %y way of rentals and demand the #essee to return all e'uipment to #essor at #essors own risk and expenses in the same condition as deliered, ordinary wear and tear and damage %y fire not caused %y the negligence of #essor excepted, at such location as the #essor may designate and upon failure of #essee to do so within 1; days from the date of demand, enter upon premises where such @'uipment is located and take immediate possession of and remoe the same, all without lia%ility to #essor or its Agent for such entry or for damage to property or otherwise. #essor may detach and dismantle the @'uipment from any part of the freehold or process machinery to which it may %e affixed without the written permission of #essee/ -c Sell all the @'uipments at pu%lic or priate sale or lease to others with B days "otice on account and at the risk of #essee and appropriate the net sale proceeds or realisation of rental towards the present alue of all the future rentals declared to %e immediately due and paya%le at the rate of 19O per annum as aforesaid and to recoer from the #essee the shortfall or deficit together with interest thereon at the rate of 9O p.m. %ut the #essor shall not in any such action or for duty to account to #essee for such action or for any surplus realised %y the #essor %y sale or lease. -d &he remedy referred to hereina%oe is intended to %e in addition to any other remedy aaila%le to #essor at law proided howeer that on the #essee making payment to the #essor at any time %efore action under 0lauses -a or -% a%oe taken %y #essor of the present alue of all future lease rentals as proided herein %efore, the #essee shall retain all the e'uipment leased hereunder for its own use and the #essor further

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undertakes to transfer all its title and interest on the said @'uipment to the #essee on receipt of payment as referred to hereina%oe. 1<. :AI@R) Any expressed or implied waier %y the #essor of any default shall not constitute a waier of any other default %y #essee or a waier of any of #essors right. All original rights and powers of the #essor under this Agreement will remain in full force, notwithstanding any neglect, for%earance or delay in the enforcement thereof, %y the #essee of this Agreement shall not %e deemed as waier of any continuing or recurring %reach %y the #essee of this Agreement. 1=. "C&I0@S) Any notices or demands re'uired to %e gien herein shall %e gien to the parties hereto in writing and %y post or %y hand deliery at the address herein set forth or to such other addresses as the parties hereto may hereafter su%stitute %y written notice gien in the manner prescri%ed herein a%oe. 1B. &his Agreement and other contracts executed %etween the parties hereto pursuant to this Agreement cannot %e cancelled or terminated except as expressly proided herein. #essee here%y agrees that #essees o%ligations to pay all lease rentals and any other amounts owing hereunder shall %e a%solute and unconditional. &his Agreement cannot %e amended except in writing and shall %e %inding upon and to the %enefit of the parties hereto their permitted successors and assigns. 18. &he captions in this Agreement are for conenience only and shall not define or limit any of the terms hereof. 1. AR*I&RA&IC") All disputes, differences, claims and 'uestions, whatsoeer, which shall arise either during the su%sistence of this Agreement or afterwards %etween the parties andFor their respectie representaties touching these presents or any clause or thing herein, contained or otherwise in any way relating to or arising from these presents shall %e referred to the ar%itration of two Ar%itrators, one to %e appointed %y each party to the dispute and such ar%itration shall %e in accordance with and su%ject to the proisions of the Ar%itration and 0onciliation Act, 1= or any statutory modification or reenactment thereof for the time %eing in force. 9?. *y execution hereof, the signor here%y certifies that he has read this Agreement, including the Schedule hereto and that he is duly authorised to execute this Agreement on %ehalf of the #essee. I" :I&"@SS :!@R@C5 each of the parties hereto has caused this agreement to %e executed in duplicate on thisKKKKK -date %y its duly authorised officers.

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Signed for and on %ehalf of) 5orKKKKKKKKKKKKKKK In the presence of) :itness "o. 1 :itness "o. 9 Signed for and on %ehalf of) 5orKKKKKKKKKKKKKKK

CONCLUS%ON

It can %e concluded that a successful lease deed re'uires all of the following %eginning or continuing a ciil legal proceeding, without reasona%le grounds to %eliee the allegations of the proceeding, with a purpose other than simply getting a judgment in the proceeding, and that, the proceeding has terminated in the faour of the person %eing prosecuted or sued -i.e. the future plaintiff in the malicious prosecution suit must first win the suit against him or her. A ciil proceeding is typically where the plaintiff is not a goernmental entity 44 although the defendant might %e 44 and the plaintiff is suing for money or an injunction. @en if the people %ringing the criminal or ciil proceeding think they hae a winning case and are suing for a legitimate reason when they %egin the case, they can %e guilty of malicious prosecution if they discoer a reason they cannot win during the case, %ut continue the case for improper moties anyway.

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DPC.doc

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