In 2005 Food Corporation of India invited offers from landowners for construction of plinth and othe......

In 2005, Food Corporation of India invited offers from landowners for construction of plinth and other facilities for storage purposes and after constructin, to lease to FCI on rent for three years. A submitted offer. After negotiation, offer of A at negotiated rate was accepted and agreement on 1.6.2006 was entered into giving details of terms on which A agreed to lease out plinths after construction under lease agreement to be executed between the parties in the prescribed proforma. Time was essence of the agreement and in case of delay in construction and faulty workmanship, FCI was not bound to take plinths on lease. A borrowed loan from Bank and raised construction. FCI took possession on 12.01.2007, but served notice of vacation on 14.09.2008. A filed suit for damages for breach of contract. Main defence of FCI is that in absence of registered lease deed the parties were not bound by the period of lease as the agreement was unenforceable and in absence of valid agreement, tenancy was month to month and liable to be terminated under section 106 of Transfer of Property Act, and hence A cannot claim damages?
Decide by giving reasons.     (10 Marks)

By: santosh