• Land lease issue with government petroleum company

I own land and leased it to the government pertroleum company. I was also dealer. My license was terminated due to one of the old cases and I accept the consequences. 
Term of the Lease 30 years:
Rent paid since 2000: Rs. 200 / month

We stopped accepting rent since 2003. 

However, during this course, company created 3rd party interest by creating ATM (non-petroleum product) and CNG filling station - without landlord (in this case I am the land lord) consent. (remember I was dealer at that time)
I understand that Dealership and Land lease are treated as separate contracts and have no bearing on each other. 
In the mean time, I have filed petition in local court to fight legal battle on the grounds that since they created 3rd party interest, the lease stands void.

At this point we occupy the property, but govt company is bringing local magistrate and local police pressure to vacate our land so that they can start running the petrol pump for next 14 years (remaining period of lease) and then - renew the lease after the lease expire.

I have read that Govt companies are not able to find suitable lands as property prices have sky rocketed and in that regards petrol pump has not been lucrative business. so they have directive never let go off the land that they have possession of. 

Please advice
Asked 7 years ago in Property Law
Religion: Hindu

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8 Answers

Dear Concerned,

In reference to above as yourself is in possession of the property and the petrolpump is not operational, file an application in the concerned court stating that you need to use the land for XYZ reason and for the same seek permission for dismantling of the petrol pump.......(in case you dont want to pursue) . Or if there is a provision in the lease deed / the dealership agreement ...check if you can re brand the petrol pump with some other petroleum company.....

Best of luck

Atulay Nehra
Advocate, Noida
1308 Answers
58 Consultations

5.0 on 5.0

1)refuse to vacate the land

2) refuse to bow down to pressure tactics

3)you can in suit filed by you seek an injunction restraining petroleum company from disturbing your possession of land pending hearing and final disposal of the suit

Ajay Sethi
Advocate, Mumbai
94522 Answers
7485 Consultations

5.0 on 5.0

You are rightly filed a petition before the local court for eviction on the ground of violation of the agreed terms and conditions for the lease. You can also seek the eviction under the grounds of your personal occupation, default by the company in payment of monthly rents of the premises and areas of rents. The magistrates and local police does not have any right or power to visit the land and the pressurize you for vacating. If you are facing any problem or trouble from them you can approach the Honorable Chief Justice of concerned High Court with your grievance. You can lodge a complaint online.

Lakshmi Kanth
Advocate, Hyderabad
446 Answers
15 Consultations

4.7 on 5.0

1. By the act of stopping to accept rent what did you want to claim? Did you cancel the lease agreement giving adequate notice?

2. The lease agreement is required to be perused for giving proper advice. Was there any clause mentioned in the lease agreement about termination of the said lease agreement?

3. If yes, then just follow the steps mentioned in the lease agreement for terminating the said lease agreement,

4. if there is no such clause for terminating the agreement, you can not unilaterally terminate the lease agreement,

5. If there is a termination clause in the agreement, then they shall have to vacate the land as per the clause of the agreement and in such case the so called directive of the Govt Company's will not matter at all.

Krishna Kishore Ganguly
Advocate, Kolkata
27191 Answers
726 Consultations

5.0 on 5.0

termination of licence is void (if based on decree or judgment in the case) because you have right to appeal against the decree. unless and until decree is finally decided by the superior court your licence cannot be terminated.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0

termination of license is an administrative action and it cannot be terminated without giving notice to the licencee. if notice is not received by you then you should challenge the termination of license before the appropriate authority. ultimately you can file a writ before the high court.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0

1)thanks for your appreciation

2) even if company moves HC chances of success are bleak

Ajay Sethi
Advocate, Mumbai
94522 Answers
7485 Consultations

5.0 on 5.0

1. The Petroleum Company did not comply with the terms of the lease agreement they have entered in to with you since they have opened an ATM counter at your premises and sold CNG also which was not mentioned as the product to be sold by the said PSU from your premises,

2. This is a good cause for seeking termination of your said lease agreement with them,

3. Since you have already got a stay order from the lower Court, it appears that the Court has found some merit in your argument,

4. Contest the appeal of filed by the Company before higher Courts fittingly,

5. It will be beneficial for you if you can gather all such land lords who have been victimised by the Company and file a joint petition against them seeking relief.

Krishna Kishore Ganguly
Advocate, Kolkata
27191 Answers
726 Consultations

5.0 on 5.0

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