• Regarding with lease to partnership firm

Sir i am secretary of society and had given land on permanent lease in name of a partnership firm having two partners but one partner was the government servant and cannot be apartner in firm but entered into fraud contract with another partner and since he was not competent under indian contract act so partnership firm cease to exist on day of execution of lease and secondly he had fraudlently concealing fact shown himself as partner to society secretary so now can lease be cancelled under section 65 of indian contract act and section 5 of transfer of property act as partnership firm cease to exist as person and not a living person on day of execution of lease and property leased out be restored to society?
Asked 10 months ago in Property Law from Aligarh, Uttar Pradesh
Religion: Hindu
What the agreement says about the cancellation of lease ? any specific conditions are mention in the lease agreement which you entered in to the partnership firm .Section 65 in The Indian Contract Act, 1872 says that 
obligation of person who has received advantage under void agreement, or contract that becomes void. Actually you entered in to a contract with partnership firm not to individual. When an agreement is discovered to be void, or when a contract becomes void, any person who has received any advantage under such agreement or contract is bound to restore it, or to make compensation for it to the person from whom he received it.
Ajay N S
Advocate, Ernakulam
1916 Answers
19 Consultations
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Sec-lion 56 of the Contract Act of which the relevant portion runs as follows:

"56. An agreement to do an act impossible in itself is void.

A contract to do an act which, after the con tract is made, becomes impossible, or, by reason of some event which the promisor could not pre vent, unlawful, becomes void when the act becomes impossible or unlawful.

 *   *    *    *  
Section 65 may also be set out here:
  "65. When an agreement is discovered to be void, or when a contract becomes void, any person who has received any advantage under such agreement or contract is bound to restore it, or to make compensation for it, to the person from whom he received it." 

3) The principle of Section 65 also applies to leases.

4) if the doctrine of frustration applies, the contract becomes void automatically from the date of the supervening impossibility and does not depend on the volition of either party. 

5)it is better you move court in this regard 
 
Ajay Sethi
Advocate, Mumbai
23290 Answers
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The society has to file a lawsuit for cancellation of lease on the ground that it was executed by it as a result of fraud and concealment of facts by the partnership firm. It will have to be proved that society is not taking benefit of its own  wrong. That there was misrepresentation will have to be proved. A criminal complaint for cheating should also be filed against the partner. Both the remedies can be pursued simultaneously. 
Ashish Davessar
Advocate, Jaipur
18158 Answers
449 Consultations
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1. Yes, there is no partnership firm whom the said land was leased,

2. So, the said lease itself becomes infructuous for non existance of the leasee.
Krishna Kishore Ganguly
Advocate, Kolkata
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231 Consultations
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You can take the defences you so desire in your reply 
Ajay Sethi
Advocate, Mumbai
23290 Answers
1219 Consultations
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The opposite party will take many defences to repel your claim. Unless the lease deed is perused threadbare nothing can be said.
Ashish Davessar
Advocate, Jaipur
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449 Consultations
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1. Why was this point not informed in your earlier port?

2. If the above clause has been incorporated in the lease deed, it should have been objected while executing it,

3. However, the the said clause has no affect in treating the said deed invalid since there can not be a deed or agreement with a non existing and virtual entity.
Krishna Kishore Ganguly
Advocate, Kolkata
12118 Answers
231 Consultations
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Obligation of person who has received advantage under void agreement, or contract that becomes void.—When an agreement is discovered to be void, or when a contract becomes void, any person who has received any advantage under such agreement or contract is bound to restore it, or to make compensation for it to the person from whom he received it. 

“Transfer of property” defined.—In the following sections “transfer of property” means an act by which a living person conveys property, in present or in future, to one or more other living persons, or to himself, 1[or to himself] and one or more other living persons; and “to transfer property” is to perform such act. 1[In this section “living person” includes a company or association or body of individuals, whether incorporated or not, but nothing herein contained shall affect any law for the time being in force relating to transfer of property to or by companies, associations or bodies of individuals.]

Both the laws mentioned by you are reproduced above.  From the contents it can be seen that the conditions of lease agreement has not covered the above aspects.  Hence it may not be maintainable.
T Kalaiselvan
Advocate, Vellore
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127 Consultations
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In the lease deed it is mentioned that - containing any thing (kisi bhi baat ke hote hue) the rights of lesse  not be  affected and right  of society  remain confined only for taking rent. if opposite party takes stand of this clause.
Therefore the contents of lease deed clearly indicates that the deed is not going beyond the actual issues.  If this was the case then it cannot be illegal.
T Kalaiselvan
Advocate, Vellore
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you entered in to a contract with partnership firm not to individual. The person who enter in to the contract represented by the firm 
Ajay N S
Advocate, Ernakulam
1916 Answers
19 Consultations
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