The land owner can legally enter into a lease contract with the tenant for use of his/her agricultural land for agriculture and allied activities for a specified period for a consideration based on an agreement with terms and conditions mutually agreed by the owner and the cultivator. Agriculture and allied activities would include raising of crops including cardamom plantation, food and non-food crops, fodder or grass; fruits and vegetables, flowers, any other horticultural crops and plantation; animal husbandry and dairy; poultry farming, stock breeding; fishery; agro forestry, agro-processing and other related activities by farmers and farmer groups.
Sample Format of Lease Deed for Plantation is given below.
LEASE AGREEMENT FOR PLANTATION
This Lease Agreement made at ______________ this __ day of __________ made between
(1) Mr. ______________ and (2) Mr. ______________ both of ______________ hereinafter referred to as the 'Lessors' of the One Part
M/s ______________ Ltd., a company registered under the Companies Act as a
public Company limited by shares and having its registered office at
______________ hereinafter referred to as 'the Lessee' of the Other Part as
(1) The Lessors are joint owners of a large piece of hilly land admeasuring about ____ Acres situated at ______________ and which is more particularly described in the Schedule hereunder written .
(2) The Lessee is doing business, inter alia of growing agricultural plantations and propose to develop a rubber plantation on the said land.
(3) The Lessee has therefore requested the Lessors to grant a lease of the said land for ______ years which is generally the life of a rubber tree and which the Lessors have agreed to do on the following terms, covenants and conditions.
Now this Deed witnesseth that pursuant to the said agreement and in consideration of the rent hereby reserved and of the covenants on the part of the Lessee and other terms and conditions herein contained the Lessors do hereby demise unto the Lessee the said land described in the Schedule hereunder written for a period of ____ years from the date hereof and at the rent and on the covenants, terms and conditions hereinafter recorded.
1. The Lessee covenants with the Lessors as under
(a) To pay an yearly rent of Rs. _______ in advance without any deduction, the first of such payments to be made on the execution of these Presents and the subsequent payments to be made on or before the corresponding date of each subsequent year regularly during the period of this demise.
(b) To pay all land revenue and all other taxes dues and duties including
sales tax on the sale of rubber latex produced regularly and as and when they
become due and shall indemnify and keep indemnified the Lessors against any
liability in respect thereof.
(c) To observe and perform the terms and conditions herein after mentioned.
2. And it is hereby agreed and declared that
(a) The Lessee shall develop the said land for growing rubber tree plantation and other incidental plantations and for no other purpose.
(b) The Lessee shall maintain such plantation in good condition and shall observe and perform all the rules, regulations and orders of the Government or any local authority.
(c) For the purpose of developing the plantation the Lessee will be entitled to nourish the land by removing all bushes and other wild growth, stones and rubbles, by digging pits, terracing it wherever required and doing all acts and things as will be necessary for the growth of the rubber trees.
(d) The Lessee shall be entitled to cut any of the existing trees subject to Government restrictions and permissions.
(e) The Lessee will be entitled to put a compound wall round the whole of the demised land or any part or parts thereof in whatever manner the Lessee thinks fit for the protection of the plantation.
(f) The Lessee will be entitled to put up any farm house or other structure necessary for such plantation but shall not put up any building for the residence or other use of any person not actually working on the plantation.
(g) The Lessee will be entitled to construct any structure required for drying, or otherwise processing the latex produced and doing other operations for marketing the same.
(h) The Lessee will be entitled to dig wells or tube-wells for obtaining water required for the trees or to obtain water from any outside source.
(i) The Lessee however will not be entitled to quarry stones or minerals if any from the demised land.
(j) The Lessee will not be entitled to mortgage or otherwise encumber the demised land or any part thereof or sub-let the same or any part thereof without the prior written consent of the Lessors and which will not be unreasonably withheld or refused.
(3) And it is hereby agreed and declared by and between the Parties hereto that on the expiration of the said period of lease or earlier termination thereof for any other reason, the Lessor shall remove all the houses and structures constructed thereon at its own costs within one month from the date of such termination by efflux of time or otherwise if the Lessee so desires, failing which the same along with the trees standing thereon will belong to the Lessors absolutely without liability to pay any compensation therefore.
(4) And it is further agreed and declared that the Lessee shall indemnify and keep indemnified the Lessors against all losses costs, charges and expenses that the Lessors may suffer or incur on account of (i) the Lessee committing breach of any law, rule or regulation or directions in connection with the plantation (ii) the Lessee causing any damage to property or loss of life (iii) the Lessee causing loss to any adjoining land and anything appurtenant thereto by any act or (iv) any accident occurring during the operations on the said land and (v) non payment of taxes dues and duties payable to the Government or any Local authority in respect of the said land or any other amount payable in respect of the plantation (vi) any other reason whatsoever.
(5) AND THE LESSORS DO HEREBY COVENANT WITH THE LESSEE THAT -
(a) The Lessors have in themselves good right and full authority to demise unto the Lessee the demised land and in the manner herein appearing.
(b) That on the Lessee paying the said rent in the manner aforesaid and observing and performing the covenants conditions and stipulations herein contained and on the part of the Lessee to be observed and performed the Lessee shall peaceably and quietly hold, possess and enjoy the demised land in the manner aforesaid during the term hereby created without eviction interruption, disturbance, claim and demand whatsoever by the Lessors or any person or persons lawfully or equitably claiming by, from, under or in trust for them.
6. AND IT IS HEREBY FURTHER AGREED AND DECLARED AS FOLLOWS
(a) This Lease is granted on express term or condition that if the said yearly rent or any part thereof payable in the manner hereinbefore mentioned shall be in arrears for the space of more than ______ months after the same shall have become due and payable and whether the same is demanded or not, or if any of the covenants, agreements, terms and conditions hereinbefore provided is not observed or performed by the Lessee or if the Lessee is ordered to be wound up or otherwise goes upto liquidation, or if the Lessee does not start the plantation operation for more than two months from the date hereof, or if the plantation is abandoned for more than four months continuously for any reason whatsoever, or if the said land or any substantial part thereof is intended to be acquired by the Govt. then and in any of these events it shall be lawful for the Lessors, by giving to the Lessee one month's prior notice, to terminate this lease and to enter upon the said land or any part thereof in the name of the whole.
(b) If the said demised land or any major part thereof is acquired by the Government or any local authority or if the Government prohibits the plantation or takes over the same under any law, this lease shall stand terminated, without any notice by the Lessor, on the happening of any of the said events.
(c) If the Lessee does not desire to continue the lease for any reason he will be entitled to terminate this lease by ______ months' prior notice to the Lessor to that effect but in that event the Lessee will be liable to pay to the Lessor an amount equal to all the rent for the remaining period of the lease as compensation or liquidated damages for loss to the Lessor.
IN WITNESS WHEREOF the parties have put their hands the day and the year first hereinabove written.
THE SCHEDULE ABOVE