AI Overview...
Beneficial Clauses of Construction or Setup Favorable to Lessee
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Right to Construct and Make Alterations
Several lease agreements explicitly provide lessees with the right to construct buildings or structures on the leased land, often at their own cost, with provisions that facilitate such construction. For example, Clause 8 in some leases states that lessors shall assist or cooperate with lessees to enable construction, including making necessary applications (References: Govindram Bros. Pvt. Ltd. . and others VS Alexander Benedict Joseph Pereira - Bombay, Govindram Bros. Pvt. Ltd. & others VS Alexander Benedict Joseph Pereira - Bombay). This setup benefits lessees by ensuring they can develop the property without undue hindrance. -
Right to Remove Structures and Structures’ Benefits
Lease clauses often specify that lessees have the right to remove structures at the end of the lease, especially if no compensation is stipulated, which is advantageous for lessees who wish to retain the benefit of their investments (References: Larsen And Toubro LTD. , Club House Road, Madras VS Trustees Of Dharmamurthy Rao Bahadur Calavala Cunnan, Chettys Charities By Its Trustees - Supreme Court, PRAVINBHAI S/o JASBHAI PATEL VS O. L. OF AMBICA MILLS LTD - Gujarat). This flexibility encourages lessees to undertake construction without fear of losing their improvements. -
Construction for Beneficial Use and Improvements
Clauses that recognize the construction of structures as beneficial for the lessee’s enjoyment—such as toilets, mezzanine floors, or other improvements—are favorable. These clauses often specify that such constructions are for the lessee’s benefit and are not subject to landlord claims or restrictions (References: VINOD MAHABIPRASAD GUPTA vs SAIDPUR JUTE CO. LTD. AND ORS . - Bombay, Varma Realtors VS Habib Alladin - Andhra Pradesh). -
Protection Against Unlawful Eviction or Possession
Some lease provisions or judicial interpretations emphasize that the use of land for non-agricultural purposes, including construction, is protected, provided it aligns with the lease terms. This benefits lessees by safeguarding their rights to develop the property legally (References: Chanchalben Amritlal Patel VS Deputy Collector (ENC) and Competent Authority - Bombay). -
Beneficial Interpretation of Lease Terms
Courts tend to interpret ambiguous lease clauses in a manner beneficial to lessees, especially when the language favors construction rights or improvements. For example, interpreting clauses to favor lessees' rights to construct or remove structures at the end of the lease period enhances lessee security (References: Additional Commissioner Of Income-tax VS Hindustan Milk Food Mfg. Ltd. - Punjab and Haryana, Shahed Kamal VS Pagarani Universal Infrastructure Private Limited, formerly known as A. Surti Developers Pvt. Ltd. - Bombay).
Analysis and Conclusion
The most beneficial clauses for lessees are those that explicitly grant the right to construct, make improvements, and remove structures without excessive restrictions or compensation obligations. Provisions that facilitate cooperation from lessors, protect lessees’ improvements, and allow for flexible interpretation in their favor significantly enhance lessee rights and benefits. Judicial decisions reinforce the importance of interpreting lease clauses beneficially to uphold lessee interests, especially regarding construction rights and improvements.
References:
- PRAVINBHAI S/o JASBHAI PATEL VS O. L. OF AMBICA MILLS LTD - Gujarat
- Varma Realtors VS Habib Alladin - Andhra Pradesh
- Larsen And Toubro LTD. , Club House Road, Madras VS Trustees Of Dharmamurthy Rao Bahadur Calavala Cunnan, Chettys Charities By Its Trustees - Supreme Court
- Chanchalben Amritlal Patel VS Deputy Collector (ENC) and Competent Authority - Bombay
- Govindram Bros. Pvt. Ltd. . and others VS Alexander Benedict Joseph Pereira - Bombay
- Govindram Bros. Pvt. Ltd. & others VS Alexander Benedict Joseph Pereira - Bombay
- Additional Commissioner Of Income-tax VS Hindustan Milk Food Mfg. Ltd. - Punjab and Haryana
- Shahed Kamal VS Pagarani Universal Infrastructure Private Limited, formerly known as A. Surti Developers Pvt. Ltd. - Bombay
- VINOD MAHABIPRASAD GUPTA vs SAIDPUR JUTE CO. LTD. AND ORS . - Bombay
Search Results for "Give me some Clause of Construction or Set up which Beneficial to Lessee"
2005 0 Supreme(Guj) 347 • India - Gujarat
K.A.PUJ
Clause 11 stipulates that on determination of the lease, the lessee should demolish the construction at their cost and after making ... Clause 9 makes it clear that after the expiry of period of 51 years, the lessor and lessee through their representatives each and ... Clause 14, however, makes it clear that whatever rights are given to the lessees under the lease-deed, the said rights include right ... Clause 11 stipulates that on determination of t....
2015 0 Supreme(AP) 540 • India - Andhra Pradesh
R.SUBHASH REDDY, A.SHANKAR NARAYANA
Therefore, the act of respondent No.16 in making construction of commercial or residential apartment complexes in any part of the ... in favour of respondent No.16, and seeking the relief in the latter I.A. restraining the very same respondent No.16 from making construction ... the appellant, it shall be in respect of the interest held by the appellant over the property is concerned, while interpreting clause ... ... ii) It is stated that the findings recorded by the Court below that by sub-clause (iii) of cla....
1988 0 Supreme(SC) 550 • India - Supreme Court
S.RANGANATHAN, SABYASACHI MUKHARJEE
force in argument at least if there had been a clause specifically stating that lessee will not be entitled to compensation for ... that there is much force in this submission of learned counsel for appellant - As view court have taken is entirely based on a construction ... his structures - Clause here makes no mention of compensation and only talks of lessees right to remove structures - Even if no such ... The clause only provides that, in case the landlord decided to exercise this ....
2005 0 Supreme(Bom) 503 • India - Bombay
D.B.BHOSALE, S.B.MHASE
Therefore, the submission that where an act of taking possession of the land or building in slum area from a lessee as sub-lessee ... However, the fact remains that the use of the land for non agricultural purpose either by `K’ or by the appellants and construction ... unauthorised structures, or (3) who knowingly gives financial aid to any persons for taking illegal possession of such lands, or for construction ... Even if it is assumed that the appellants were inducted by Karsan Jivabai, by executing a valid document d....
1994 0 Supreme(Bom) 399 • India - Bombay
A.P.SHAH
Final Decision: The court allowed the petitioners' revision application and set aside the order of the City Civil Court. ... ... And Clause 8 of the lease-deed provided as under :- ... "The lessors shall at the request and costs of the lessee make or join in such applications as may be necessary to be made to enable the lessee to construct a building ... The words in Clause 8 - ".... to enable the lessee to construct a building or buildings on the said land or to enable the #HL_START....
1994 0 Supreme(Bom) 307 • India - Bombay
A.P.SHAH
The lease was granted in 1950 for a period of 20 years, with a clause requiring the petitioners to construct buildings on the land ... The court also held that the lease-deed was pertaining to construction of any type of building by the petitioners and as such this ... ... And Clause 8 of the lease-deed provided as under : – ... “The Lessors shall at the request and costs of the Lessee make or join in such applications as may be necessary to be made to enable the Lessee to construct a building ... The ....
1974 0 Supreme(P&H) 57 • India - Punjab and Haryana
PRITAM SINGH PATTAR, D.K.MAHAJAN
that the rule of interpretation is that where two interpretations of a fiscal statute are possible, the interpretation that is beneficial ... entire relevant previous year or at any one point of time during the relevant previous year - Held, the phrase "at any time" in Clause ... The Appellate Assistant Commissioner and the Tribunal held that the phrase "at any time" in Clause (ii) of Section 2(18)(b) of the ... This principle can be called the principle of lesser burden and the Supreme Court has explained it as follows ....
2022 0 Supreme(Bom) 589 • India - Bombay
S.J.KATHAWALLA, MILIND N.JADHAV
Maharashtra Ownership Flats (Regulation of Promotion of Construction, Sale, Management and Transfer) Act ... II of MMRDA Act, Court hold that there was no requirement for Developer to obtain consent of flat purchasers before commencing construction ... 12, 2(c) - Mumbai Metropolitan Region Development Authority Act, 1974 - Societies Registration Act, 1860 - Letters Patent Act - Clause ... It is settled law that a beneficial legislation has to be interpreted in a manner so as to further the beneficial ob....
2024 Supreme(Online)(Bom) 6638 • India - High Court of Bombay
SANDEEP V. MARNE, J
, 39, 47, 86) ... ... (B) Lease Deed - Provisions for alterations - The lessee ... Godbole, construction of toilet and WC is only for beneficial enjoyment of the suit premises and same cannot attract folly under Section 13(1)(b) of the Bombay Rent Control Act. ... By no stretch of imagination, construction of mezzanine floor, lowering of plinth, construction of toilet /WC, etc. be covered by Clause 4(c) of the Lease Deed. ... Clause 2 of the Lease Deed contains righ....
1973 0 Supreme(Cal) 243 • India - Calcutta
HAZRA, A.N.SEN
LEASE - CONSTRUCTION - LEASE DEED - INTERPRETATION - ANNUAL PAYMENT - WHETHER RENT OR CAPITAL EXPENDITURE - HELD, ANNUAL PAYMENT ... contained various other provisions, including the right of the assessee to install new plant and machinery and its entitlement to the beneficial ... It is necessary to set out the said agreement in its entirety as the question involved in the present case turns on a true construction of the said document. ... The lessee will get the remaining surplus. In other words, the #....
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