Allotment of sheds on lease basis shall be on the following terms and conditions :—
(i) the lessee shallexecute a lease deed in form IE (7)
(ii) the lease shall be for a period of 30 years in the first instance renewable for an another period of 30 years at the option of the lessee on a rent not exceeding double the rent in the preceding period. The Icase shall be liable to be terminated at any time by either party by giving in writing a notice of three months to that effect,
(iii) the repairs due to ordinary wear and tear of the shed shall be responsibility of the Corporation, but damages, if any caused to the shed shall be got repaired by the allottee within one month or the Corporation shall get it done and recover the cost from the allottee;
(iv) water connection in the shed shail be provided by the Corporation, The power connection will be taken by the lessee at his own cost;
(v) all dues including those on account of water and power consumption and taxes including property taxes shall be payable by the lessee;
1543
(vi) the rent as fixed by the Corporation from time to time according to the manner prescribed in the schedule shall be payable by the lessee in advance every month by 10th of the month to which the rent relates.
In case of non-payment of rent by the due date mentioned herein above, simple interest @ §2°% per annum or as is determined by the Corporation from time to time shall be charged. Arrears of two months rent shall amount to breach of the terms of lease contract;
(vii) The shed shall be used for setting up a small scale industry for which it is allotted by the Corporation and for no other purpose except with the previous permission of the Corporation;
(viii) The Jessee shall not sub-let, under let, mortgage or otherwise alienate or transfer or part with the possession of the shed or any right or interest therein. He shall also not take any partner without the prior permission of the Corporation in writing.
Provided that incase after the industry has been set up and gone into production, the lessee at any time expresses his inability to carry on the industry due to financial or other reasons and the Corporation is satisfied that he is actually not ina position torun the industry, the lessee can sell the industry inclusive of the machinery and other material therein but excluding the shed and lease rights thereof, with the prior permission of the Corporation in writing.
(ix) The production in the shed shall start withina period of six mouths from the date on which the possession is delivered. The Corporation may, however, at its option, extend the time limit upto a maximum period of three months for reasons to be recorded in writing :—
(x) failure on the part of the lessee to comply with any of the conditions stated above shall amount to breach of contract and the Corporation shall have a right to get the shed vacated forthwith;
(xi) the allottee shall not carry out any additions and alterations to the main shed and buildings without the prior approval of the Corporation and;
(xii) in case the allottee suspends or closes running of the industry in ihe shed at any time for a period exceeding six months, the Corporation as the case may be, shall terminate the lease by giving one month’s notice and resume the possession of the shed;
(xiii) The lessee shall during the term of lease also keep the shed insured at his cost with an Insurance Company of repute with Corporation as 1544 beneficiaries against loss or damage by fire and all other risks and in such sumas determined by the Corporation and shall deposit with it such Insurance policy and receipts for payment of premium in respect of the same.
11, Hire-purchase of shed :— Allotment of sheds on hire-purchase shall be on the following terms and conditions : —
(i) the shed shalf be leased out to hire-purchaser for a period of 15 years subject to the conditions that he shall have an option to purchase it on the expiry of this period provided, he has paid all the instalments;
(ii) The hire-purchaser shall pay 20% of the cost of the shed as is fixed by the Corporation in the manner prescribed in the schedule as first Instalment in advance and the remaining amount alongwith interest @ 6% per annum shall be payable in 15 equal annual instalments, Each instalment shall fall due on the first day of twelfth month from the date on which possession of shed allotted on hire purchase basis was given to the hirepurchaser. The Corporation may on the application of the hire-purchaser extend this period upto two months in hard case for reasons to be recorded in writing,
(iii) in case failure to pay any instalment on due date, the Corporation shall have aright to terminate the contract of hire-purchase by serving one month’s notice and in that case the shed shall be treated on lease basis according to rule 10 above;
Provided that in case the instalment dueis paid within the period of notice such period shall be treated as a further extension over and above the two month’s extension referred to in clause (ii) above and a penal interest @ 9% per annum shall be charged on the amount of over due instalments for the entire period for which default has been made;
(iv) The hire-purchaser shall not sub-let, under-let, mortgage or otherwise alienate or transfer or part with the possession of the shed or any right or interest therein till all the hire-purchase instalments have been paid except as provided hereunder :—
(1) The shed can be transferred within a period of ten years from the date of commencement of hire purchase with the prior approval of the Corporation in writing and on payment in lump sum of twice the cost of the shed, recoverable on hire purchase basis or the market value of the shed (to be determined in consultation with 1545 the state Public Works Department or any other appropriate authotity of the Government), whichever is higher. The instalments already paid will be adjusted against this amount.
(2) The shed can be transferred after ten years from the date of hire.
purchase, with the prior permission of the Corporation, in writing and on payment in lump sum the remaining instalments;
( v) the shed shall be used for setting up a smali scale industry for which it is allotted by the Corporation and for no other purpose except with the previous permission of the Corporation in writing;
(vi) the, hire-purchaser shali keep the shed in a condition of good repairs.
In the event of his failure to do so, the Corporation shall get it repaired and recover the cost of repairs from the hire-purchaser;
(vii) tillall the instalments towards the hire-purchase price of the shed are paid, the hire-purchaser shall keep the shed insured with any Insurance Company, inthe name of Corporation against loss or damage by fire and all other risks as the Corporation may require in such sum as is equivalent to the cost of the shed, and shall deposit with the Corporation all such insurance policies and receipts for payment of the premiums in respect of the same;
(viii) the production in the said shed shall be started within a period of six month from the date on which the possession is delivered. The Corporation may, however, at its option, extend the time limit uptoa maximum period cf three months for reasons to be recorded in writing :
(ix) the hire-purchaser shall execute an agreement, in Form IE (8);
(x) the hire-purchaser shall not carry out any additions and alterations to the main shed and building without the approval of the Corporation.
(xi) in case the hire-purchaser suspends or closes running of the industry in the shed at any time for a period exceeding six months, the Corporation shall terminate the allotment by giving one month’s notice and resume the possession of the shed;
(xii) Breach of any of the above conditions shail entitle the Corporation to terminate the allotment by giving one month’s notice and to resume the possession of the shed thereafter.
(xiti) Clause (xiii) deleted vide notification No. 26 (18) Ind/A/65 dated 12-6-1979, 1546 11, A. Conversion of existing lease basis sheds into Hire-Purchase basis :—
(i) The lessee to whoma shed has been allotted on lease basis may option for hire-purchase of shed in Form No. IE (9) within a period of three months from the date of publication of these rule in the official gazette, irrespective of the fact that he has already given option under the existing rules, on acceptance of option for nirepurchase basis, the amount of rent paid by him under the lease for the period subsequent to the date of his option shall be adjusted towards the initial instalment of 20% of the cost of the shed and the annual hire-purchase instalments.
(ii) After adjustment of the amount of rent towards the initial instalment of 20% and instalments, if there is any shortfall, such amount shall be paid by the lessee a period of 2 months from the date of demand made by the Corporation.
(iii) In case where the option has been accepted by the Corporation the allotment on hire-purchase basis shall be deemed to have come into force from the date, the hire-purchaser desired the option to be enforced in form IE (9) and the period of 15 years during which the entire cost of the shed is ta be paid shall be determined from that date,
(iv) Other conditions will be the same as mentioned in rule 11 above, provided however, that the agreement shall be executed in Form No. IE-(I1).