• Lease agreement of 20 years can be termed as rent agreement?

We had entered into a lease agreement with a Public sector undertaking with leasing out of Power plant for 20 years, after having successful operation of the agreement for nearly 4 years there was sudden change of the contractual terms and conditions resultant into non-operation of the contract and we are legally stuck, however, company is now forcing us to pay lease rental can I please know the following: 

1.	Is there any court ruling that any contract which has joint responsibility of leasing of power plant, supply of coal, buying of power and payment of lease rent in one composite contract, can the client inforce upon us in isolation payment of lease rent despite of not paying our bills? We need help to understand that any composite contract cannot be dealt in isolation 
2.	Any court ruling unless the lease agreement is not registered and Stamp duty paid cannot be termed as binding over rent agreemnt

Shall be thankful if can get some light on the above query!!
Asked 8 years ago in Business Law

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3 Answers

Please note that court decisions have no blanket applicability and without knowing the full case history and terms of the lease deed no citations can be referred to which may fit into your case.

Lease agreement if not registered is very much binding but for collateral purposes and it can be admissible in evidence in court also if the penal stamp duty is paid once the court impounds it.

If you being the lease copy I may render possible help. Since you are form Kolkata you may feel free to contact me at [deleted] for further assistance.

Devajyoti Barman
Advocate, Kolkata
23288 Answers
519 Consultations

1)it is necessary to peruse agreement signed by you with PSU to advice

2) kindly clarify whether terms were changed with your consent or not?

3) if you had agreed to the changes then contract would be binding upon you

4) if client is not making payment of your bills issue legal notice to client to pay your bills

5) invoke the arbitration clause in the contract if lcient has committed breach of contract

Ajay Sethi
Advocate, Mumbai
97268 Answers
7856 Consultations

1. The ;lease agreement is required to be perused to examine whether it is a composite contract or all the components of the contract are interdependent or have bee agreed to be treated separately. In case the performance of one party is dependent on the performance of the another party of the agreement, then the first party can not be blamed for his non performance by the 2nd party who himself did not perform as per the contract and on whose performance, the performance of the 1st party depended.

2. What was the period of the lease agreement? If it was for more than an year, then it was required to be registered to be eligible to be treated as legally valid and enforceable.

Krishna Kishore Ganguly
Advocate, Kolkata
27501 Answers
726 Consultations

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