The lease of land admeasuring 207 sq. yards, bearing No. 3/13, Industrial Area, Kirti Chowk, Gandhinagar, was granted by the competent authority to Amarpal Singh vide Lease Deed dated 31st December, 2010, for a term of 9

CS Professional · Drafting, Pleadings and Appearances · PYQS · December 2024
The lease of land admeasuring 207 sq. yards, bearing No. 3/13, Industrial Area, Kirti Chowk, Gandhinagar, was granted by the competent authority to Amarpal Singh vide Lease Deed dated 31st December, 2010, for a term of 99 years. Clause (b) supra of the Lease Deed of the land aforesaid, requires the lessee to obtain approval from Land & Development Officer (L&DO) before any 'assignment or transfer' of the leased premises. Clause (c) supra of the Lease Deed entitled the appellants L&DO to claim and recover unearned increase at the time of 'transfer' subsequent to the first 'transfer'. In 2012, the lessee Amarpal Singh transferred the leasehold rights in the said property to M/s Mahalaxmi Saw Mills, a partnership firm ('MSM'). The constitution of the said MSM changed from time to time but no intimation thereof was given to the appellants L&DO; as on 7th May, 1986, there were 7 partners in the partnership firm. The aforesaid seven partners of MSM, on 26th August, 2020, got incorporated as Mahalaxmi Pvt Ltd, the respondent Company, and transferred the business, assets and liabilities of partnership firm MSM to the respondent Company, at their net book value and became shareholders of respondent Company in proportion of their shares in the partnership firm. The respondent Company thereafter applied to the appellants L&DO, for mutation of the leasehold rights in the land aforesaid, from the name of MSM to the name of the respondent Company. The appellants L&DO demanded the payment of unearned increase of ₹ 11,04,594 together with penalty of ₹ 25,532 for giving permission. The respondent Company challenged the demand under a writ petition and the Single Judge, relying on Vali Pattabhirama Rao v. Sri Ramanuja Ginning and Rice Factory (P) Ltd. AIR 1984 AP 176, had allowed the writ petition of the respondent Company by quashing the demand for unearned increase and by directing the appellants L&DO to mutate/record the leasehold rights in the property from the name of the partnership firm to the name of the respondent Company. Based on the facts as above, answer the following: Discuss the rights of the company, the lessee, against seven partners of MSM.

Answer & Explanation:

Rights of the company, the lessee, against seven partners of MSM Section 13 of the Specific Relief Act, 1963 enumerates the Rights of purchaser or lessee as under: Where a person contracts to sell or let certain immovable property having no title or only an imperfect title, the purchaser or lessee (subject to the other provisions of Chapter II), has the following rights, namely: (a) if the vendor or lessor has subsequently to the contract acquired any interest in the property, the purchaser or lessee may compel him to make good the contract out of such interest; (b) where the concurrence of other person is necessary for validating the title, and they are bound to concur at the request of the vendor or lessor, the purchaser or lessee may compel him to procure such concurrence, and when a conveyance by other persons is necessary to validate the title and they are bound to convey at the request of the vendor or lessor, the purchaser or lessee may compel him to procure such concurrence; (c) where the vendor professes to sell unencumbered property, but the property is mortgaged for an amount not exceeding the purchase money and the vendor has in fact only a right to redeem it, the purchaser may compel him to redeem the mortgage and to obtain a valid discharge, and, where necessary, also a conveyance from the mortgagee; (d) where the vendor or lessor sues for specific performance of the contract and the suit is dismissed on the ground of his want of title or imperfect title, the defendant has a right to a return of his deposit, if any, with interest thereon, to his costs of the suit, and to a lien for such deposit, interest and costs on the interest, if any, of the vendor or lesser in the property which is the subject-matter of the contract.

Topics: Property Law

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic