RAJESHAGARWAL (CA) 16 May 2012

Urgent help

hello every one

One of my freinds is in super market business in hyderabad.The following is the query

They had entered into a agreement las year for a new premises @ 8 lakh per month with 15% hike for every 3 years and 15 years agreement renewable every 5 years.

The Land lord has not yet completed the works like electric supply and is asking for start of rent

The tenant has already deposited a sum of Rs.40 lakh out of 50 lakh agreed deposit.

Incase tenant doesnt want to continue with agremeent and leave th premises What remedies he has for recovery of amount

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2 Replies

adv. rajeev ( rajoo ) (practicing advocate) 16 May 2012

Cancell the agreement and ask for refund of money, if the landlord didn't your frnd can file suit for recovery of money. As per state court fee act y;ou wil hae to pay the Court fee on it.

S Jadhav 98336 98330 (Jadhav & Associates) 16 May 2012

You have mentioned only some terms of the agreement. Normally the agreement will contain many other details such as the date from which rent will start and the date before which the landlord should complete the building including various permissions.

Since the builder has failed to hand over the premises to you, you can cancel the agreement and ask for refund. If he does not give the refund then you can get the money legally by following the process of law.

Please note that the lease agreement should be registered. If yoru friend has not got a registered document, then also he can get a refund. However, it is compulsory to register the lease agreements and only registered documents are considered evidence in a Court of law.

In the absence of a registered document you may not be able to prove that you had agreed for a lease on the terms mentioned therein but you can always ask for a refuind of the money given by you as per the process of law. File a suit.

S Jadhav