I had taken land on lease for 99 years and had constructed a multistoried building. The Lease deed contains a clause, “Cannot assign, underlet or sublet or part with the possession of the demised property without the previous permission of the lesser”. The lease deed provides for construction of building, I have given portions of the building on leave and license to various businessmen. The lesser has issued a notice demanding subletting charges from me and has also marked the copies to licensees demanding to pay the subletting charges. What is the remedy? Can the Lesser institute legal action against me and other licensees?
- by Munilal, Mysore
Generally under transfer of property act, when the Lessor gives the land on lease with a right to construct, the lessor does not have any right on the building constructed there till the lease period is over. The Lessee, the owner of the building, can deal with the building as absolute owner and so he has every right to underlet, sublet and give on leave and license. In your case the lease deed prohibits the assignments under letting, sub letting or parting with possession of the demised property without the permission of the Lessor.
The demised property means the land and not the super structure constructed thereon unless the lease deed provides otherwise. Further, the leave and license does amount of parting of possession, subletting or under letting or assignment. As such, the Lessor cannot claim any subletting charges from you.