ASSIGNMENT 19: LEASE DEED

NAME: FAAREHA SHAHID

INTRODUCTION

A lease deed is a written contract between a landlord (lessor) and tenant (lessee), which states that
the landlord would receive a periodic payment in exchange of allowing the tenant to use and
occupy the property. The lease deed also defines the terms and conditions that govern the
relationship between a landlord and a tenant during the period of lease.

A lease deed is generally required when the property is leased for a long period of time, ranging
between 1-5 years or even longer. In such cases, a lease deed plays an important role to govern the
relationship between the landlord and tenant and lays down the provisions legally binding over
them.

As per Section 105 of the Transfer of Property Act, the definition of ‘Lease’ can be understood as a
transfer of a right to enjoy property for a certain time or in perpetuity; in consideration of a price
paid or promised or of money, a share of crop, service or any other thing of value to be rendered
periodically or on specific occasion to the Lessor by the Lessee who accepts the transfer on such
terms.

In this context,

 Lessor is the absolute owner of the property which is the subject matter of the lease;
 Lessee is the person acquiring the rights to use and enjoy the property on lease from the
Lessor;
 Duration is the term for or period for which the rights to use and enjoy the property is
granted. The duration of the lease can be for a certain time, express or implied or can also
be in perpetuity;
 Premium or Rent is the consideration for granting the rights to use and enjoy the property
can be in the form of a one-time price paid or promised i.e. Premium or on payment of
money or any other thing of value, periodically or on specific occasions or intervals, known
as Rent.

Therefore, by executing a Lease Deed, what is transferred by the Lessor to the Lessee is only his
right to enjoy the property, subject to the terms agreed upon, and not the whole or any part of the
absolute ownership rights, this type of transfer in conveyancing parlance is known as a ‘demise’.
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A lease can be understood as the rightful separation of ownership and possession i.e. prior to the
grant of the lease, the Lessor has the right to enjoy the possession of the land but during the
concurrence of the lease, he excludes himself from that right (Anwarali vs Jaminilal Roy, AIR
1940 Cal. 89).

The usage of the term ‘demise’ in a Lease Deed or instrument of lease triggers the Lessor’s liability
for the warranty of quiet enjoyment of the property the Lessee is entitled to remain in possession
until the lease is terminated by due process of law (Jaswantsinh Mathurasinh & Anr. vs
Ahmedabad Municipal Corporation & Ors., 1992 Supp. (1) S.C.C. 5, 12.).

Key Contents of a Lease Deed in India

The most important provisions that must be included in every lease deed in India are as follows:

1. Description of Property: The lease deed must contain the description of the property like the
area, location, address, structure, furniture and fittings, etc.
2. Duration: The lease deed must clearly state the time period for which the lease deed will be
valid. This provision can also include the information relating to the renewal of the lease
deed if both the parties wish to continue and renew their contract.
3. Rent, Maintenance, and Security: The amount of rent, mode of payment, due dates, security
deposit to be paid, interest on delay in payment, etc. must be clarified in the lease deed. The
lease deed must also include the details and responsibility for paying any maintenance
charges, utility bills, society charges, etc.
4. Termination of Lease: The lease deed must state the reasons for which the lease agreement
can be terminated. This may include breach of lease deed, use of the property for illegal
acts, failure to pay rent, nuisance by the tenant, etc.
5. Subletting: The lease deed must state whether the tenant is allowed to sublet the property or
not.
6. Dispute Resolution: The agreement must mention the manner in which the legal disputes
between the landlord and tenant arising out of breach of the lease deed will be dealt with.
This may include any ADR processes like Arbitration.
7. Applicable Laws: This provision states the laws which will be applicable over the lessor
and lessee in case of a dispute and which court will have jurisdiction to deal with such
matters.
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LEASE DEED

THIS DEED OF LEASE made on this 1st day of April 2019 at New Delhi between
Ashok Kumar S/O Rajendra Kumar residing at 37, A block, New Friends Colony, New Delhi.
Hereinafter referred to as the Lessor (which term shall mean and include wherever the context so
requires or admits his/their heirs, successors, administrators, executors, attorneys and
assigns) of the One part and Bank Of India a body corporate hereinafter referred to as the
Lessee (which term shall mean and include wherever the context as admits or requires its
successors, administrators and assigns) of the Other Part represented by its Manager and holder of
Power of Attorney dated 1st April 2019
Mr. Imraan Khan S/o Abrar Khan witnesseth as follows -

WHEREAS, the Lessor/s is/are the owners of the building bearing No. 37 situated at A block,
New Friends Colony, New Delhi.

WHEREAS, the Ground floor measuring about 700 sq.ft. (Carpet area) in the said building more
fully described in the schedule hereto and hereinafter called the "Said Premises" were vacant and
ready for occupation and whereas the Lessee being in need of accommodation for its use and
occupation approached and requested the Lessor to grant lease in its favour in respect of the "Said
Premises" and whereas both the parties now desired to reduce the terms into writing and
whereas the Lessor agreed to grant lease in favour of the Lessee in respect of the "Said Premises",
it is now hereby agreed as follows -

WHEREAS, the Lessee is already a tenant under the Lessor in respect of the above building
fully described in the schedule hereto and hereinafter called the "Said Premises" paying a
monthly rental of Rs. 1,00,000 and whereas the Lessor approached and requested the Lessee
to pay an enhanced rental of Rs. 1,50,000 and whereas the Lessee consented to pay the
enhanced rental of Rs. 1,50,000 and whereas both the parties now desired to reduce the terms
into writing, it is now hereby agreed as follows -

1. This lease for purposes of payment of rent and period of lease shall be deemed to have
commenced from 1st May 2019
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2. This lease shall be in force for a period of 5 (five) years. The Lessee shall, however, have
the option to continue the lease thereafter for a further period upto 4 (four) years.
The Lessee shall be at liberty to vacate the "Said Premises or part thereof" at any time
during the period of lease on giving 4 (four) month/s notice.

3. The lessee shall pay to lessor in respect of “said premises” a monthly rental of Rs.
1,50,000 (one lakh fifty thousand rupees only) for 5 year period of lease and monthly
rental of 2,00,000 (two lakh rupees only) for the option period of lease payable within the
1st working day of each succeeding calendar month.

4. The Lessee has paid to the Lessor a sum of Rs. 3,00,000 (three lakh rupees only) only
being 2 months rent in respect of the ‘said premises' as deposit of rent to be adjusted
towards the rent for the last 2 months of the tenancy.

5. The payment of all taxes, rates, cess and other levy including penalties, if any, charged
thereon in respect of the `said premises', such as Corporation / Municipal /
Panchayat Tax, Urban Land Tax, etc., due to the State Government, Central Government
or other local or other civic, including enhancements and new introductions shall be to
the account of the Lessor. The Lessee shall be at liberty to pay the above tax, rate or
cess or other levy including penalties, if any, charged thereon in case of default or delay
by the Lessor and adjust the amount so paid together, with interest and other
incidental expenses from out of rents in respect of the `said premises' becoming due
immediately after the said payment or demand reimbursement of all such amounts,
costs, expenses, etc., with interest @ 2.5 % per annum from the date of such payments
until realisation by the Lessee. Service tax (if applicable) will also be borne and paid
by lessor (landlord).
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6. The Lessor shall, at his / their own cost, carry out all repairs including periodical painting
of the `said premises'. The periodicity of such painting will be once in 3 - 5 years. If the
Lessor fails to carry out such repairs including periodical whitewashing and painting, the
Lessee may call upon the Lessor in writing to do the same within one month from
the date of receipt of such request and if the Lessor fails to carry out the same within
that time, the Lessee shall be at liberty to get it done and adjust the amount spent or
expended or such repairs, etc., with interest 1% per annum towards the rent payable to the
Lessor or the Lessee shall have the right to recover the same from the Lessor.

7. The Lessee shall be at liberty to under-lease / sub-lease the `said premises' or part thereof
to any of its subsidiaries or to any other party.

8. The Lessee shall have the right to utilise the leased premises or part thereof for any of their
various needs.

9. The Lessor shall grant all rights of way, water, air, light and privy and other easements
appertaining to the `said premises'.

10. The Lessor has no objection to the Lessee in installing the exclusive generator sets for the
use of the Office whether such generator sets are owned by the Lessee or taken on hire
by a Third Party for the exclusive use of the Lessee. Further, the Lessor agrees to provide
suitable space with proper enclosures for installation of generator set free of cost.

11. The Lessee shall have exclusive right on the parking space for parking of the vehicles of
staff members and customers of Lessee and the same shall not be disturbed
obstructed or encroached in any manner by any persons whomsoever.

12. The Lessee shall have the absolute & exclusive right to use the entire space in
‘said premises’ both outside and inside for making full use of frontages
and the side walls in displaying Lessee’s signboards /
advertisements without any additional charges to the exclusion of third
parties. If anybody causes any intrusion, trespass or encroachment restricting
the peaceful enjoyment of the Lessee over the space which is
specifically meant for usage of the Lessee, the Lessor on receipt of
such Notice from the Lessee shall take all possible legal actions
against such violations including criminal action, if necessary. If the
Lessor fails to take legal recourse to remove such intrusions, trespass
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or encroachments within one month from the date of receipt of such

13. The Lessor has no objection to the Lessee installing ATM in the said premises at any time
without any additional rent to the Lessor, the ATM room will be constructed by the
Lessor at his cost and that the Lessor will provide the required additional power to the
Lessee.

14. The First Party has no objection to the Second Party installing V-SAT antenna in the said
premises at any time without additional rent (free of cost) to the First Party.

15. The Lessee shall have the right to remove at the time of vacating the `said premises', all
electrical fittings and fixtures, counters, safes, strong room door, safe deposit lockers,
partitions and all other furniture put up by it.

16. The Lessee shall be liable to pay all charges for electricity and water actually consumed
by the Lessee during the occupation and calculated as per the readings recorded by
the respective metres installed in the `said premises'.

17. The Lessee shall not make any structural alterations to the building without the
information and permission of the Lessor. However, the Lessee is at liberty and no
permission of Lessor is required for fixing wooden partitions, cabins, counters, false
ceiling and fix other Office furniture, fixtures, electrical fittings, air- conditioners, exhaust
fans and other fittings and Office gensets, etc.,as per the needs and requirement of the
Lessee and or make such other additions and alterations on the premises which will not
affect the permanent structure.

18. The Lessor may at their own cost and expenses construct any additional
structure/additional floor in the building and in which case and if the Lessor decides to
lease out the said additional floors / area, then the first option and offer will be given to
the Lessee and the Lessee shall have the right to take the same on lease on mutually
acceptable terms. And in case of refusal by the Lessee, then the Lessor will be at liberty to
lease out the same to any other party.
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19. The Lessee shall hand over possession of the `said premises' to the Lessor on the expiry
of the period of lease fixed herein or on the expiry of the period of option should the
Lessee avail itself of the same and on refund of deposit made by the Lessee, if any, in the
same state and condition as on the date of occupation but subject to natural wear and tear
due to ordinary use and lapse of time.
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SCHEDULE OF THE
PROPERTY

Property situated at A block, New Friends Colony, New Delhi (building no. 37, ground floor). The
carpet area of which is 700 sq. ft.

In witness whereof the parties hereto have set their hands hereunto in full agreement of the terms
and conditions set-forth herein above the day and year hereinbefore first mentioned.

WITNESSESS LESSOR / S

(1) Dev Rathor

(2) Javed Akhtar LESSEE