Termination of lease agreement during lock in period by lessee
venkatesh
(Querist) 18 March 2014
This query is : Resolved
Dear Sir,
I require your advice and suggestion clearly on the following:
1) One of the Employer entered Lease Agreement with Lessor for 3 years lock in period. After lock in period 3 months notice on either side for terminating the lease agreement / vacating the commercial office space.
2) The lease agreement is not registered.
3) The lessee due to expansion decided to terminate the lease after one year accepting 3 months notice period
4) Now after 3 months notice period, Lessor not willing to refund Security Deposit amount, giving reason of not getting suitable tenant at the same rate agreed by lessee.
5) More than 5 months after the notice period, nearly for 8 months lessee forced to pay rent.
6) Security Deposit is for 10 months.
7) Now new Lessee is willing to come at a lesser rate, viz. Rs.5-10 less than the lessee paid to the lessor.
8) Can the Lessee refuse to pay rent further and demand refund of security deposit?
9) Or Lessee need to pay for the entire 3 years lock in period though the lease agreement is not registered
10) Simply, its a black mail of the lessor refusing to refund the Security Deposit; not willing to take new tenant, as the lessor will be getting lesser amount than what lessor getting from the existing lessee; indirectly forcing lessee to pay rent till lease completes 3 years.
Kindly advise how our Indian Legal Law takes this into account and give justice to Lessee in a fair and decent manner.
Thanks
Venkatesh
Devajyoti Barman
(Expert) 18 March 2014
Without gong through the lease deed, it is difficult advise. Both parties are bound by the general terms especially the terms governing termination of lease.
R.V.RAO
(Expert) 19 March 2014
as per the lease agreement, signed by both parties, the lessor and lessee both agreed for 3 year lock -in -period.
it could have been legally strong ground to have registered the lease agreement of 3 years.
the lessee's grounds of defence are weak, as he does not want to honor the 3 year lock in period, after 1 year of lease.
consult an advocate and show the lease agreement for a sound advice.
Rajendra K Goyal
(Expert) 19 March 2014
The lease agreement which requires registration was not registered although signed by both the parties is a proof of certain agreed terms between the parties.
To advise in the given circumstances all the documents have to be seen, consult a local lawyer.
T. Kalaiselvan, Advocate
(Expert) 20 March 2014
The three years lease agreement need to be registered by paying proper stamp duty and this unregistered agreement has no legal validity. However on the basis of the information give by the author, the lease agreement can be treated as an evidence for having received the advance amount by the lessor, thereby upon vacating the the premise, the lessee can very well issue a lawyer's notice demanding the deposit amount followed by a suit for recovery of money. However, please contact a good and prudent advocate locally and proceed as per his advise.
