RE: Legal opinion
We refer to your letter dated 08.05.2007 on the above subject. We have perused the documents/papers (all photocopies) referred to us including letter dated 15.04.2007 issued by the Manager addressing the Head Office of the Bank.
It appears that Bank entered into Lease Agreement dated 12.11.1995 (the ‘Lease Agreement’) with Company 1 (COMPANY 1 ) represented by its two directors, namely i) Mr. x, ii) Mr. z to take lease of floor space measuring 1460 square feet on the 1st floor of the building situated at …………….. to set up its Fakirapool Branch. The Lease Agreement was executed for 05 years. Subsequently, the above Lease Agreement was renewed for further 05 years i.e. up to 31.12.05.
Mr. A, Ex-Director of COMPANY 1 through his lawyer sent a legal notice dated 16.06.2004 upon Bank through which he informed the Bank inter alia that …………… had purchased the leased premises not in the name of COMPANY 1 but in their individual names vide Deed of Sale dated 20.06.1991 and claimed ¼ of the paid rent. Please note that we have not been provided with Deed of Sale dated 20.06.1991.
Now, one Mr. C claiming as constituted attorney of Mr. D sent a letter dated 15.04.2007 to the Bank informing that Mr. D has purchased the portion of land and building owned by Barrister A. vide Deed of Sale No. 6323 dated 04.11.2004. Mr. A insisted Bank to execute lease agreement with the individuals i. e. ………….., …………..upon ascertaining ownership of the leased premises. Bank has referred to us Deed of Sale No. 6323 dated 04.11.22004.
In such situation, the matter has been referred to us with a request to advise as to the next course of action of the Bank.
Our opinion is as follows:
We are not aware as to whether bank had ascertained the ownership of the land premises before taking it as leased premises. Since no property document showing the ownership of COMPANY 1 (the COMPANY 1 ) has been referred to us, the ownership of COMPANY 1 cannot be ascertained without the said documents. However, Lease Agreement has expired on 31.12.05 and firstly BARRISTER A. and then his vendee Mr. D claimed ownership over the land. In such situation, if the bank is interested to continue the leasehold right, Bank must ascertaining the ownership of lease premises properly through vetting of property documents and then it may enter into fresh lease agreement with the actual owners.
Should you have any further query, please do not hesitate contact us.
All documents/papers referred to us are returned herewith.
For: “The Lawyers & Jurists”