We have taken a Commercial Property on Lease, Vide Registered Lease Deed, for a period of 15 Years and the said Agreement is registered.
Subsequently, the aforesaid Property was further Sub-Leased, to another Party, Vide Un-Registered Sub-Lease Deed, for a period of 10 Years.
As per the said Sub-Lease Deed;
1) There was a rent free fit out period of 60 days;
2) Rentals payable in advance;
3) Lock-in-period of 20 Months and if Sub-Lessee desires to vacate the premises before the lock-in-period, then Sub-Lessee is required to pay rentals for the balance lock-in-period and after that can vacate the premises;
4) Termination; if Sub-Lessee doesn’t pay the rent for a consecutive period of 3 Months;
5) Arbitration Clause; before resorting to any litigation, the disputes shall be settled b/w the parties through a sole arbitrator appointed duly agreed and appointed by the Parties;
6) Stamp Duty: Payable by the Sub-Lessee as per the Agreement.
Subsequently, after signing of the Sub-Lease Deed;
1) Sub-Lessee kept on assuring that they will start their business in few days;
2) Sub-Lessee kept on assuring that they will register the Sub-Lease Agreement; &
3) the Sub-Lessee, neither took possession of the Property, nor paid the rentals;
4) Rent-free fit-out period of 60 days lapsed and monthly rentals were not paid by the Sub-Lessee for a consecutive period of 3 months;
5) As such, Sub-lessor having no other option; (as neither Sub-lessee was taking possession, nor paying the rentals) terminated the Sub-Lease Agreement;
6) Dispute arose as to recovery of rentals (even after adjusting the Security Deposits, rent recovery stood substantial);
7) After termination of the Sub-Lease Deed; Notice was sent to Opposite Party, referring an arbitrator, and sought his consent for appointment of an arbitrator;
8) Opp Party rejected the Name of the Arbitrator suggested by us.
9) As such, an CMP Petition was filed before High Court, u/s 11 (5) seeking appointment of the Arbitrator;
10) Notice was served. Opp Party Counsel appeared and argued that as the Sub-Lease Agreement is an Un-registered Deed & its unenforceable, as document itself is invalid.
Note:
Sub-lessee never took possession of the Premise. The Sub-Lessee failed to pay monthly rent, even after rent-free fit out period. Sub-Lessee failed to pay rentals for the balance lock-in-period, as agreement was terminated. Sub-Lessee failed to register the Sub-Lease Agreement.
My queries are;
1) Such being a case, am I supposed to pay Stamp Duty charges now (even though as per Sub-Lease Deed, it was under the scope of the Sub-Lessee), to make the Agreement enforecable?.
2) What further steps can be taken from my end to recover the Rentals?
Pl advice.
