HOTEL / RESORT LEASE DEED
BETWEEN
__________, __________, of __________, PAN __________ (the "Lessor");
AND
__________, __________, of __________, PAN __________ (the "Lessee").
The Lessor and the Lessee are each a "Party" and together the "Parties".
RECITALS
D. The Lessee has requested a lease of the Premises to operate a hotel or resort, and the Lessor has agreed to grant one on the terms set out below.
E. The Parties intend this Deed to create a lease within the meaning of s.105 of the Transfer of Property Act, 1882, transferring to the Lessee the right to exclusive possession of the Premises for the Term, and not a licence, management contract or franchise.
NOW THIS DEED WITNESSES as follows.
- 1. GRANT AND TERM
1.3 The Lessor shall deliver possession of the Premises to the Lessee on the Commencement Date with sanctioned electricity and water connections available.
- 2. RENT
2.5 If Rent is not paid within seven days of its due date, the Lessee shall pay interest at 18% per annum on the overdue amount from the due date until payment.
- 3. SECURITY DEPOSIT
3.2 The Lessor may deduct from it only unpaid Rent or other charges, the reasonable documented cost of damage beyond fair wear and tear, and any amount payable on early termination under clause 8.
- 4. USE, LICENSING AND COMPLIANCE
4.1 The Lessee shall use the Premises only to operate a hotel or resort, and for no other purpose without the Lessor's prior written consent.
4.4 The Lessee shall obtain and maintain, at its own cost, every registration, licence, fire safety, food safety (FSSAI) and health approval its operation of the Premises requires, and shall not commence operations before the necessary registrations are in place. The Lessor shall sign any consent or NOC required from the owner for those approvals, at the Lessee's cost, and shall not unreasonably withhold or delay it.
4.5 The Lessee shall comply with guest-registration and reporting obligations under the Registration of Foreigners Rules and any local police or tourism reporting requirement.
- 5. MAINTENANCE, ALTERATIONS AND FIXTURES
5.1 The Lessor shall keep in good repair, at its own cost, the structure, roof, external walls and lifts, and shall remedy latent defects.
5.2 The Lessee shall keep the interior, fixtures, fittings and equipment listed in Schedule II in good repair, and make good damage caused by its guests, staff or contractors, fair wear and tear excepted.
5.3 The Lessee may carry out internal, non-structural fit-out, branding and signage with the Lessor's prior written consent, not to be unreasonably withheld, and shall comply with municipal and fire regulations in doing so.
- 6. INSURANCE
6.1 The Lessor shall insure the building against fire and allied perils for its reinstatement value.
6.2 The Lessee shall insure its own fit-out, stock and equipment, and shall maintain public liability cover appropriate to a hotel or resort business.
- 7. THE SECTION 118 QUESTION, RECORDED
7.1 Where clause C states that the Lessee is not an agriculturist and clause B records the Land as agricultural or horticultural, the Parties acknowledge that permission under section 118 of the Himachal Pradesh Tenancy and Land Reforms Act, 1972 may be required for this lease, and that this Deed is not effective to grant possession for the Term until any permission required has been obtained.
- 8. NOTICE, TERMINATION AND LOCK-IN
8.3 On a material default not remedied within thirty days of written notice, the other Party may terminate this Deed by fifteen days' further written notice and, in the Lessor's case, recover possession only in accordance with law.
- 9. RENEWAL
9.2 Except as stated above, the Lessee has no right to renew, and this Deed ends on the expiry of the Term.
- 10. EXPIRY AND HANDOVER
10.1 On expiry or earlier termination, the Lessee shall hand over vacant and peaceful possession of the Premises together with all keys and access cards.
10.3 The Lessee shall clear all utility, licensing and statutory dues relating to its occupation up to the date of handover.
- 11. INDEMNITY
11.1 The Lessee shall indemnify the Lessor against claims, losses and reasonable legal costs arising from its operation of the hotel or resort, the acts of its guests, staff or contractors, and its breach of this Deed.
11.2 The Lessor shall indemnify the Lessee against claims arising from a defect in the Lessor's title, a prior encumbrance, or the Lessor's breach of this Deed.
- 12. STAMP DUTY AND REGISTRATION
12.2 The Parties shall present this Deed for registration before the Tehsildar or Naib-Tehsildar exercising the powers of Sub-Registrar for the Tehsil in which the Premises lie, within four months of execution, with both executants or their s.33-authenticated attorneys attending in person with photo identification and PAN.
- 13. NOTICES
13.1 Notices under this Deed shall be in writing, delivered by hand against acknowledgment or by registered post or courier, to the Lessor at __________ and to the Lessee at __________.
- 14. DISPUTE RESOLUTION AND GOVERNING LAW
14.3 This Deed is governed by the laws of India as in force in Himachal Pradesh.
- 15. GENERAL
15.1 This Deed, with its Schedules, is the entire agreement between the Parties about the Premises.
15.2 No amendment is effective unless in writing and signed by both Parties.
15.3 If any provision is held invalid, the rest of this Deed continues in effect.
SCHEDULE I — THE PREMISES
SCHEDULE II — FACILITIES, FIXTURES AND EQUIPMENT
SIGNED AND DELIVERED by the LESSOR
__________
PAN: __________
Signature: ______________________________
SIGNED AND DELIVERED by the LESSEE
__________
PAN: __________
Signature: ______________________________
WITNESSES