LEASE DEED

PSDA

Subject: Submitted By:

Property Law Yash Bansal
Submitted To: Enrollment Number:
Ms. Sonia Maan 00917703519
Semester: Section:
VI K

Vivekananda School of Law & Legal Studies

Vivekananda Institute of Professional

Studies DELHI

2022
 DECLARATION

I hereby declare that the project work entitled

“DRAFTING OF LEASE DEED”

submitted to VIVEKANANDA SCHOOL OF LAW AND LEGAL STUDIES, DELHI
is a record of original work done by me under the guidance of Ms. Sonia Maan, Assistant
Professor at Vivekananda Institute of Professional Studies. The results embodied in this
project have not been submitted to any other university or institute.

Yash Bansal
 ACKNOWLEDGEMENT

I would like to express my deepest appreciation to this institution for providing me with such
knowledgeable and professional faculty and all other necessary resources. A special gratitude I
would like to give to my teacher Ms. Sonia Maan whose contribution to stimulating suggestions
and encouragement, helped me coordinate my project.
Also, I would like to thank my family and friends for constantly guiding me and supporting me,
and improving my report with comments and advice.
 INDEX

S. No. Content Page Number

1. LIST OF CASES 5

2. LIST OF ABBREVIATIONS 6

3. INTRODUCTION 7-8

4. LEASE DEED 9
 LIST OF ABBREVIATIONS

S. NO. WORD ABBREVIATION

1. Section S.

2. Square Feet Sq. Ft.

3. Year on Year YoY

4. Terms and Condition T&C

5. Rupees Rs.
 INTRODUCTION

The Transfer of Property Act, 1882 provides for 5 types of transfers namely:-
1. Gift
2. Mortgage
3. Sale
4. Lease
5. Exchange
Lease refers to a conveyance of an interest in the property owned by a person to another person
for a specific period of time or for a stipulated period of time only, without transferring the
ownership in the property. So, leasing a property would mean transferring the interest in the
property or transferring the possession of the property from the owner to another person for a
certain period of time without actually transferring the ownership. The person who transfers the
property is called the ‘Lessor’ and the person to whom the interest is conveyed or who enjoys the
possession is called the ‘Lessee’. Lease as a mode of transferring the property has been dealt
with under the Transfer of Property Act, 1882 from S. 105 to 117.
S. 105 provides for the definition of ‘Lease’. S.105 of the Transfer of Property Act, 1882 defines
a lease as:-
➢ A lease of immovable property is a transfer of a right in the property to enjoy such
property, for a certain period of time which may be express or implied, or in perpetuity,
in consideration for a price paid or promised to be paid, or money, or a share of crops, or
service, or any other thing of value to be rendered periodically or on specific occasions to
the transferor by the transferee, who accepts the transfer on such T&C.1
Thus, a lease is a transfer of immovable property for a particular period of time for some
consideration of which the transferee has accepted the T&C.
S.106 of the Transfer of Property Act, 1882 provides for the duration of the lease in absence of
an agreement. As per S. 106 of the Transfer of Property Act, 1882 a lease for agricultural or
manufacturing purposes is deemed to be on YoY basis and would end on expiry of 1 year from

1
The Transfer of Property Act, 1882 (Act 4 of 1882), S. 105
the date of commencement of the lease, while any other lease is on a month on month basis and
would expire on the expiry of 1 month from the date of commencement of the lease.2

➢ ESSENTIALS OF LEASE:-
a. Competency of parties- It is necessary that the lessor and the lessee are
competent to enter into a contract. For instance: Either of the parties must not be a
lunatic or insolvent or have an unsound mind.
b. Acceptance- For a lease agreement to conclude it is necessary that the lessee to
whom the interest in the property is to be transferred agrees to the T&C of the
lease agreement.
c. Right of possession- It is pertinent to note here that in case of the lease the
possession of the property is transferred from the lessor to the lessee and not the
ownership. If the ownership of the property is transferred then that would merely
be a sale and not a lease.
d. Lease- Lease is a mode of transfer of property in which property is transferred
only for a particular period of time which is mentioned in the lease agreement.
e. Immovable property- S. 105 of the Transfer of Property Act, 1882 clearly
stipulates that transfer of property by lease can only be of immovable property.3

➢ RIGHTS OF LESSOR:-
a. Right to recover the rent from the lessee.
b. Right to back possession of the property.
c. Right to recover the damages done to the property.
d. Right to take back possession after termination of lease.4

➢ DUTIES OF LESSEE:-
a. Duty to inform the lessor about facts that would increase the value of the property
which the lessor is not aware of.

2
The Transfer of Property Act, 1882 (Act 4 of 1882), S. 106
3
Supra Note 1 at 7
4
The Transfer of Property Act, 1882 (Act 4 of 1882), S. 108
 b. Duty to pay rent.
c. Duty to maintain the property in the condition in which the property was initially.
d. Duty to prevent any other person from using the leased property.
e. Duty to give notice to lessor regarding any proceeding related to property.
f. Duty not to attach any permanent structure with the consent of the lessor except
for the purpose of agriculture.
g. Duty to return the possession after expiry of the term of the lease.5

➢ RIGHTS OF LESSEE:-
a. If any alteration is made during the period of the lease then the same will come
under the same lease.
b. If a significant part of the leased property is destroyed wholly or partly due to fire
or floor or war or by a mob or by any other means leading to inefficiency of
benefit to the lessee then the lease would be voidable at the option of lessee.
However, if any damage is done due to the acts of the lessee itself then the
remedy would not be available.
c. If the lessee has made any expenses for repairs then the same shall be deducted
from rent if the lessor has failed to do so in reasonable time.
d. Lessee can deduct all the things that the lessee had attached in the property but the
lessee has to return the property in the same condition as it was initially.
e. If the duration of lease has not been specified then the lessee or his or her legal
representative has a right to collect all the profits or benefits from the crops that
were sown.
f. If the lessor neglects to make any payment which the lessor is bound to make
which if not made would be recoverable from the lessee then the lessee may make
such payment and deduct it with interest from the rent or recover it from the
lessor.6

5
Ibid
6
Ibid
 ➢ DUTIES OF LESSOR:-
a. It is the duty of the lessor to disclose any material defect in the property so leased.
b. The lessor can enter into an agreement with the lessee to abide by the T&C of the
agreement then he can enjoy the property for the rest of the time period without
any interference with an obligation to pay the rent later on.
c. The lessor is bound by the request of the lessee to give him right of possession in
the property.7

➢ TERMINATION OF LEASE:- S. 111 of the Transfer of Property Act, 1882

provides for termination of lease. A lease can be terminated in the following ways:-
1. Lapse of time- When the time period for which lease agreement was made
expires.
2. Interest- If the lessor’s interest in leasing the property ceases then that would
amount to termination of lease.
3. Specific event- If the termination of the lease depends upon a particular event
then the occurrence of that event would amount to the termination.
4. Same owner- If the interest of the lessor and lessee's interest is vested in the same
person then the lease would terminate.
5. Express surrender- If the lessee yields up the interest under the lease to the
lessor by mutual agreement then the lease is terminated.
6. Implied surrender- If the lessor grants lease to a third person with the consent
of the lessee then the lease terminates.
7. Forfeiture- Forfeiture can occur in three ways:-
a. When there is a breach of an express condition.
b. When the lessee renounces his character or gives title to 3rd person.
c. When lessee is declared unsolved.
In such cases lease would terminate.
8. Expiry of notice to quit- When the notice given by the lessee to the lessor to quit
the lease or intention to quit the lease expires then the lease would also expire.8

7
Ibid
8
The Transfer of Property Act, 1882 (Act 4 of 1882), S. 111
 LEASE DEED

This deed of Lease made on the 11th day of March 2022 between Mr. Ramesh Jain (hereinafter
called “the Lessor”) S/O Mr. Kamal Jain residing at Plot No. 12 Ground Floor, East Patel
Nagar, New Delhi, and Mr. Rahul Mehta S/O Mr. Kunal Mehta residing at Plot No. 14 West
Rohini, New Delhi (hereinafter called “the Lessee”).
WHEREAS the Lessor is the owner of the first floor of Plot No. 12 Ground Floor, East Patel
Nagar, New Delhi which is declared to be the value of Rs. 50,00,000 by the Lessor and
WHEREAS, the First floor of the Plot bearing No. 12 measuring about 1800 sq. ft. (Carpet area)
comprising 1 bedroom, 1 bathroom, 1 kitchen cum pantry, and 1 living area in the said building
more fully described in the schedule hereto (hereinafter called the "Said Premises") is vacant
and ready for occupation and w
WHEREAS the Lessee being in need of accommodation for its use and occupation approached
and requested the Lessor to grant a lease in its favor 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 a lease in favor of the Lessee in respect of the Said Premises, it is now hereby agreed as
follows -
WHEREAS, the Lessee will be a tenant under the Lessor in respect of the above floor fully
described in the schedule hereto paying a monthly rental of Rs. 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 the lease shall be deemed to
have commenced from 12th March 2022.
2. This lease shall be in force for a period of 6 years certain from 12th March 2022.
3. The Lessee shall pay to the Lessor/s in respect of the said premises a monthly rental of
Rs.50,000 (Rs. Fifty Thousand Only).
4. The Lessee shall, however, have the option to continue the lease thereafter for a further
period of up to 6 years after the expiry. However, in the extended period, the rent shall be
enhanced to Rs. 60,000 (Rs. Sixty Thousand Only).
5. The Lessee shall be at liberty to vacate the "Said Premises or part thereof" at any time
during the period of lease on giving 3 months notice.
6. The Lessee has paid to the Lessor a sum of Rs. 50,000 only being 1-month rent in respect
of the said premises as a deposit of rent to be adjusted towards the rent for the last 1
month of the tenancy.
7. The payment of all taxes, rates, cess and other levies 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.
8. The Lessee shall be at liberty to pay the above tax, rate or cess or other levies 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 @ 8% per
annum from the date of such payments until realization by the Lessee.
9. The Lessor shall, at his own cost, carry out all repairs including periodical painting of the
said premises. The periodicity of such a painting will be once in 2-4 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 28 days 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 @ 8% per annum towards the rent payable to the Lessor or the
Lessee shall have the right to recover the same from the Lessor.
10. The Lessee shall not be at liberty to sub-lease the `said premises' or part thereof to any of
its subsidiaries or to any other party.
11. The Lessee shall have the right to utilize the leased premises or part thereof for any of
their various needs subject to no nuisance.
12. The Lessor shall grant all rights of way, water, air, light and privacy, and other easements
pertaining to the said premises.
13. The Lessee shall have an exclusive right on the parking space for parking of his own 2
vehicles which are 4-wheeler vehicles and the same shall not be disturbed obstructed or
encroached in any manner by any persons whomsoever.
14. If anybody causes any intrusion, trespass, or encroachment restricting the peaceful
enjoyment of the Lessee over the space which is specifically meant for the 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, or encroachments within one
month from the date of receipt of such Notice from the Lessee, the Lessee shall be at
liberty to take legal action against the violators and recover the cost/expenses incurred for
such removal out of the rent payable to the Lessor or from any other monies payable to
the Lessor.”
15. The Lessee shall have the right to remove at the time of vacating the said premises, all
electrical fittings and fixtures, 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 meters 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 furniture, fixtures, electrical fittings, air conditioners, exhaust fans,
and other fittings, 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 stamp duty and all other expenses in respect of this Lease Deed and a duplicate
thereof shall be borne and paid by the Lessee.
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 the 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.
 SCHEDULE
(Leased under this deed)

All the pieces and parcels of immovable property bearing Plot No. 12 Measuring 1800
sq. ft. are bounded by:-
On the East: Front-facing 20 feet road
On the West: 15 feet road
On the South: Vacant
land On the North: Plot
No. 14
The market value of the property leased under this deed is Rs. 50,00,000 (Rs. Fifty Lakhs
only).
The Stamp duty is paid as per the Department of Revenue, New Delhi.
The Stamp Duty paid by the Lessee is Rs. 1,80,000 and the Registration Fees paid by the
Lessee are Rs. 26,000.
IN WITNESS WHEREOF the parties herein have affixed their respective signatures to
this deed at Sub-registrar’s office, II Basai-Darapur on 12th day of March of the year
2022 in presence of the witness:

WITNESSES:-
Lessor’s Witness-

Lessee’s Witness-