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PDF Editor FAQ

What is difference between rent agreement and lease agreement?

It is generally said that “lease is of 12 months or more and rent agreement 11 months or less” but there is no provision in Indian law which specify such a thing. There is no difference between rental agreement and lease agreement in India. Lease of immovable property has been defined in Section 105 of the Transfer of Property Act, 1881 as transfer of a right to enjoy a property made for a certain time, or for perpetuity, in express or implied form, in consideration of a price paid or promised, or money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee, who accepts the transfer on such terms.So, a lease can be of 30 days or it can be of 1 year or it can be for perpetuity like generally made lease for 99 years with term of renewal. So, rental agreement or lease agreement is one and the same thing in India.It can be done for price, money, share of crops (in case of lease of agricultural land), or services provided by the person obtaining the property on lease at specified occasions or time.

What is a "lease" as per the Transfer of Property Act of 1882?

The Transfer of Property Act, 1882Section 105.Lease defined.—A lease of immoveable property is a transfer of a right to enjoy such property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee, who accepts the transfer on such terms.Lessor, lessee, premium and rent defined.—The transferor is called the lessor, the transferee is called the lessee, the price is called the premium, and the money, share, service or other thing to be so rendered is called the rent.___________________________In India the party who takes the property for his use and occupation for prescribed time executes a lease deed. Property can be defined as something tangible or intangible to which its owner has legal title. Lease therefore can be of a movable or an immovable property. Lease is specie of transfer of immovable property under the Transfer of Property Act 1882. In the instant article on Lease, we intend to deal with the immoveable property.A lease is transfer of an interest in an immovable property which is the subject of the lease and that interest is the right to occupy and use the property for which the lease is given for period and on such terms and conditions as agreed between the parties. The transferor of property is called the lessor and the person to whom it is transferred is referred as a lessee, and the consideration so rendered is called rent.The essentials ingredients of a lease agreement are:o Parties to the agreement;o The identification of the property subject matter of the arrangement;o Term of lease,o Rent,o Date of commencement and expiry.Procedure of forming a lease agreement:Lease of immovable property for one year, or term exceeding one year, can only be made by registered instrument. All other leases may be made by unregistered instruments or oral agreements.Where there is no contract or local law governing the execution of a lease deed then lease of immovable property for agricultural or manufacturing purpose shall be deemed to be on yearly basis and terminable on the part of either lessor to lessee by giving 6 months notice. On the other hand a lease of immovable property for any other purpose shall be for monthly basis, terminable by either lessor or lessee by giving 15 days notice.In the absence of a lease agreement in writing or the existing agreement is silent on the rights and liabilities of lessor or lessee then section 108 of the Transfer of Property Act sets down the guidelines to be followed for a working relationship in a lease arrangement. Once the lessor transfers the property leased to the lessee, the lessee in the absence of contract to the contrary shall possess all the rights and will also be subject to all the liabilities of the lessor as he is the owner of it. For computing the time for a lease of immovable property, if time is expressly mentioned then the lease of immovable property will commence from that particular day and where no time is mentioned the lease begin from the day when it was entered into.Where the time is limited and the lease can be terminated before the expiration, but the lease deed omits to mention at whose option it is terminable. In such a case the lessee will have the option to determine the lease.The Right of Possession:A lease of an immovable property can be determined through 8 modes and it is only by one of these methods that the lease stands determined and the lessor gets back right of possession of the property;o By efflux of time limited thereby;o where the interest of the lessor terminates on happening of an event;o the interest of the lessor terminates on, or his power to dispose of the same extends to the happening of any event;o in case the interest of lessor and lessee becomes vested;o express surrender before the term is over;o implied surrender;o forfeiture;o When the lessee renounces his characterThe prerequisites of the agreement:Holding over comes into play when even after the determination of lease the lessee remains in possession of the property and the lessor or his legal representatives accept the rent and assent to the continuing possession by the lessee. In such a case the lease stands renewed year after year or month after month according to the purpose for which the property is leased. Where lease of immovable property has been determined by forfeiture for non-payment of rent and the lessor files a suit to evict the lessee. If the lessee at the hearing of the suit pays to the lessor rent in arrear with interest, full cost of suit or provides sufficient security within 15 days, the court may pass an order to relieve the lessee from forfeiture and allow him to hold on to the property.Lease and License:Lease and license are two different aspects of transferring property and to ascertain whether the transaction is a lease or license it has to be ascertained whether parties had intended to create a lease or a license; if the document creates an interest in the property, it can be referred as lease and if it permits a person to use a property and the legal possession remains with the owner or the original lessee it is called a license.The Stamp Duty Act 1899:The Stamp Duty Act 1899 enumerates the value of stamp duty payable on different lease documents. A lease agreement can be stamped as an ordinary agreement under article 5 of the Indian stamp act and corresponding provision of the state stamp duty act. If an agreement of lease amounts to a demise it is required to be stamped under article 35 of the Indian stamp act which also includes a sub-lease or an agreement to let and sublet. Under article 35, duty charged is on the average annual rent which is multiplied by the number of years according to the length of the lease period.Therefore, while entering into a lease, lessor and lessee have to act according to the provisions mentioned under Transfer of Property Act, registration, amount payable on account of stamp duty and other terms and conditions so mentioned in the lease deed.

Why does the Mullaperiyar Dam in Idukki, Kerala, India need rebuilding?

Kerala's stand:1) The dam is old and unsafe2) The land is Kerala's. The river is Kerala's. It originates in Kerala, and for centuries it has flown towards the west.3) Kerala will build a new dam with its money.4) They have promised to give the same amount of water to TN.5) The water supply to TN wont be affected even during the construction of the dam.6) A central Monitoring committee has to be set up like in other states.Tamil Nadus Stand:1) The Dam is safe, periodical repairs have been carried out.2) If a new dam is built Kerala wont keep its promise3)The water go waste if it flows to the sea.4)Kerala wants more water for power generation.5)The new dam wont be able to provide water due to its height level. etcEconomicsThe 999 year lease agreement was between the madras presidency(a.k.a The British) and the Travancore Maharaja. It took 25 years and a lot of arm twisting for the maharaja to accept this. The agreement was ratified in 1970 without any foresight and a misguided altruism (biggest blunder ever). According to this, TN had the complete control over the water even though it was in Kerala territory.. and it paid some tax for this. So when you look at it today, TN pays Rs 10 lakh per annum for 70 TMC of water..But TN pays 3cr per year for 1 TMC of water to Andra Pradesh and Karnataka.( Even though they share co-basin rivers).. So at todays rate TN has to pay a minimum of 200 crores per year to Kerala instead of the 10 lakh it usually pays !! Also Tn makes some good amount of money (more than 600cr every yr) through agriculture and electricity generation using the waters of the Periyar.The agreement is lopsided and unfair with all the benefits serving the TN govt..And this is the very reason TN politicians are not ready to think of anything other wise. A new dam means a new agreement. And its self interest which guides us all, at least in the indian context..A beautiful analogy explains this...Its Keralas cake, but TN gets to eat the WHOLE cake for FREE!!!(TN actually makes some good money out of this cake).And over that, Kerala has to suffer the risk of Food Poisoning!!!! Fatal food poisoning! The only reason TN is protesting is that if Kerala bakes a new Cake they may have to share or pay for it. Obviously at todays rate. Now who would like that, huh??Safety:The dam is old. It is made of surki and lime motar that gets eroded with the passage of time. Its the oldest such dam in the world. Most other such dams have been rebuilt due to safety concerns. Also some people say that that the Idukki dam can withstand the water flow. But it has to understood that the highest probability of failure is when it rains. Idukki will be full upto the brim, the rivers are overflowing, and huge amount of water will be coming in. If upon this an earthquake or landslide strikes, the effects will be disastrous. In fact, in such a condition, the water may even create new paths and flow into TN!! The consequences are terrifying, to say the least.Central Water CommissionTN keeps speaking about the "Technical Committee" which has 'guaranteed' the safety of the dam. If you check it out, the CWC has a very bad track record, as far as dam safety is concerned. It is flushed with corrupt bureaucrats and ill gotten wealth. TN keeps alluding to this report and the cosmetic repairs done on the dam.Why is that TN does not allow any independent agency to check the dam ? Why doesn't it look into the reports made by the learned professors in IIT...?? In fact, these reports weren't even allowed to be presented before the court!! Why is it, do you think, that TN does not allow any inspection on the dam by Kerala engineers. In fact the chief engineer was insulted by the CWC members. Why is that not even one non-destructive test is allowed on the dam ?? And if you think that Supreme court verdicts are infallible, you are just being extremely naive.And Dam failure is not some remote possibility. It happens every year in some or the other part of the world. And yes, each of these dams were termed as safe, before they failed. In India itself more than a dozen dams have collapsed and all of these were under the CWC. And it is going to be a huge problem in the future.ConsequencesOne of the densest population in the world live by the periyar. Millions will die. Cores of rupees in losses. and most importantly, TN will lose its life-sustaining water source.Both the sates have a lot of shared interest.. But no state is indebted to each other.. Vaiko tells Kerala to show gratitude that they BUY the produce of milk and vegetables of TN...But Kerala is giving water for FREE.. TN makes electricity, agriculture and money out of this...Kerala can survive with out TN and vice versa.. Farmers in Kerala grow cash crops.. they make money out of this and buys the vegetables and fruit from the farmers of TN.. So both win.. But say if Tn denies food , then the farmers of kerala have to start growing their own vegetables. They make less money and also the Tn farmers dont get markets for their produce .. so both loose.Kerala doesn't want to share water with TNSome people say that the new dam will not be able to provide enough water to TN, because it is at a lower height. Are you even serious? What is the point of building a new dam worth 700 crores if it cant provide water to TN? It should be understood that mullaperiyar dam is ONLY for the benefit of TN. Keralites have no use of the dam (flood regulation can be done by the dam downstream). But we want water to be shared. No politicians or Keralite is denying the right of TN for water, but not on our safety.So let me be totally logical ....There are two possible scenarios1) Kerala stand is wrong but it gets accepted : This means that the dam is actually safe, but a new dam is built. So what will be the fallout... ? Well, obviously a new dam will be built. TN will lose the totalitarian control over the dam. But still, a workable agreement can be worked out between the states so that TN gets the amount of water it needs and Kerala get due compensation for this ..2) TN stand is wrong but it gets accepted: This means the dam is actually unsafe but everyone thinks that it is safe. And say, someday the dam actually gives way(god forbid). Is that a scenario we can live with?? Can you forgive yourselves if the disaster happen....As Koffi Annan said, “Building culture of prevention is not easy. While the cost of prevention had to be paid in the present, its benefits lie in the distant future. More over, the benefits are not tangible; they are disasters that did not happen.”for further study:http://jamewils.blogspot.in/2010/11/arugments-by-tamil-nadu-and-counter.htmlNew Dam needed at Mullaperiyar urgently: Shashi Tharoor

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