Amit (DIRECTOR) 02 December 2014

Breach of the agreement by the landlord / lessor

I am Director in one of a retail companies in Delhi. We have incorporated a new company to set up a retail chain of Saloons and Spa.

To start our first store we signed a lease agreement on a Rs. 100 stamp paper (which was to be registered later as mentioned and agreed in the agreement) for a shop in a Mall in North Delhi with the landlord of that shop.

As per the agreement, there was NO security deposit payable to the landlord and the landlord was to give us the possession on the 7^th Oct 2014, the agreement was signed on the 6^th Oct 2014.

It was specifically mentioned in the agreement that the Lessor confirms to the lessee ( our company ) that he has absolute and lawful possession of this property and enjoy unrestricted and unhindered rights to lease the said property to us.

The landlord or the lessor also took 36 PDC as rent security from us and this is also mentioned in the agreement.

However later on the day of possession the landlord told us that he has some pending dues which he needs to clear for the mall management and after that only he will be able to give the possession to us.

It is now more than 55 days since the agreed date of possession, based on the agreement and his written assurance of possession in the agreement and his later verbal assurances, we already invested about Rs 10,000,00 ( Rs. Ten Lacs ) in our business planning and then there is a huge opportunity cost also.

Now after almost 2 months after the agreed date of possession ( 7^th October 2014 ) as per the agreement, the landlord says that he is not able to resolve his payment disputes from the Mall Management and wants us to terminate the agreement.

Can we take him to court and / or file a police complaint on the basis of criminal breach of trust?

Can we also claim a right to the said property?

We have a valid lease agreement of the premises, can he sale or lease the property with out our approval? In the agreement it is mentioned and agreed that he can not sell the property with out intimating us.

What best can we do to secure our interest and put pressure on him to compensate us? Can we take some criminal procedure against him for additional pressure, on the account of breach of trust?

Thanks

Amit

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4 Replies

Hardeep (Business) 02 December 2014

You have no possession and have only an unregistered lease agreement which may not help you get possession. You could use it to claim breach of trust and file for recompense and damages but it will be a long drawn out procedure with results dependent on evidences of which the unregistered lease agreement is a weak one.. If any of your PDC has been encashed that may make your case stronger. The lease agreement being unregistered is not "valid" .

Amit (DIRECTOR) 02 December 2014

Yes it is an unregistered agreement but still it is a breach of the agreement by the lessor. I suppose the breach of the agagreement in any case have happened and we would instead of civil remedy complain under criminal case of cheating and forgery? Pl advise

Biswanath Roy (Advocate) 02 December 2014

You can file a case for Specific Performance of Contract praying therein Permanent, mandatory and temporary injunction over the property to prevent any kind of transfer during subsistence of your case.and can make paper publication also to lower down the prestige of the Lessor in the eye of public.

T. Kalaiselvan, Advocate (Advocate) 06 December 2014

A suit for specific performance of contract with specific reliefs will be the best option, you have proofs of issuing 36 PDCs as well in addition to the unregistered lease agreement deed which confirms the agreement between you both. Criminal case may not lie for breach of contract. You can draw him to court but confirm that you have verified the property documents with him before entering into the contract.