Whereas the lessor carries on business as Lease Financing and leasing-out equipment and the lessee carries on business as manufacturer of and dealer in Hosiery goods and intends to take on lease certain plant and machinery from the lessor.
And whereas the lessor has agreed to give on lease such plant and machinery that may be required by the lessee.
And whereas the lessee has selected the plant and machinery from the manufacturer and seller thereof.
Now these presents witnesseth and the parties hereby agree as follows:
1. The lessee hereby agrees to lease out to the lessee and the lessee agrees to take on lease from the lessor the plant and machinery described in Schedule I hereunder.
3. The lease of the said plant and machinery shall be for a period of three years which may be renewed for another three years by mutual agreement.
4. The lessee agrees to pay the lease rentals at the rates specified in Schedule II hereunder. The lease rentals would be paid by lessee within 10 days of the same becoming due and payable.
5. In default of payment on due date, interest at 3% per month on each instalment due would be charged on the outstanding amount. The time for payment of the instalment is understood by the parties to be of the essence of the Lease Agreement.
6. The lessee expressly declares that the lessee has made the selection of plant and machinery based upon its own judgment and has not relied upon any statement or representation of the lessor.
7. The lessee undertakes to be responsible for all repairs, service defects and smooth running of the plant and machinery. The lessee will, however, be entitled to the benefits of the manufacturer’s warranties in respect of the plant and machinery.
11. The lessee will cause the leased-out plant and machinery to be operated in accordance with manufacturer’s Manuals and Instructions by competent and duly qualified personnel and in accordance with the applicable government regulations and for the lessee’s business purposes only.
12. During the term of the lease, the lessee shall at its own cost and expense keep the plant and machinery in good repair and working condition.
14. During the term of this Agreement, the lessee shall furnish to the lessor Annual Audited Accounts duly reflecting the said plant and machinery taken on lease and the lease rentals payable for same.
15. The lessee agrees to bear and pay all extra or additional or new taxes or levies in relation to plant and machinery on leasing out the same to the lessee.
16. Upon expiry of the lease period or in case of default on termination of the lease by the lessor, the lessee undertakes to deliver up possession of plant and machinery to the lessor at specified storage space intimated by the lessor at the cost and expense of the lessee and in good and working condition.
18. On any default in payment of any lease rental or breach of any of the terms and conditions hereof the lessor would be entitled to take possession of plant and machinery mentioned in Schedule I hereunder and take such action as are permissible in law for recovery of the dues.
19. The waiver of any particular default or breach of the lessee by the lessor shall not be treated as waiver of any other default or breach of the terms and conditions of this agreement.
20. Any notice of demand required to be given shall be given by post or by hand-delivery to the addresses of the parties given hereinabove.
21. The lessee agrees and undertakes that its obligations to pay all lease-rentals and any other amount owing hereunder shall be absolute and unconditional. The lessee shall not be entitled to cancel or terminate this agreement without paying the entire lease-rentals.
20 Automatic Vests Knitting Machines, Colour Motif, colour-in-colour, floating pattern, mesh pattern, plating horizontal and vertical stripes, etc.
And other particulars.
Schedule II
Total worth of rentals payable by the lessee … Rs. 51,78,800
And other particulars.
Lease rentals and due date
Rs. 5,56,980 payable quarterly beginning from 10th June 2000 and thereafter on 10th of every third month and the entire amount would be paid by 10th March 2003.
The Lease Rentals is in addition to the Lease Management fee of Rs. 51,788 payable at the time of signing of the agreement.
In witness whereof the parties herein have signed, sealed and delivered these presents on the day, month and year first above-written.
