Commercial lease early termination
palku
(Querist) 11 June 2014
This query is : Resolved
hi
I have a company from Hydrabad who are tenants at my office space in Gujarat.
I had lease agreement on 100 Rs stamp paper and had 3 years lock in period.
I spent so much money on furniture and fixtures and just after 2 years the company vacated office by giving me 3 months notice.
now they are about to vacate and asking me to payback deposit money.
Out of 6 months deposit money they have not paid 3 months rent. so only 3 months money is left and I am not willing to pay this back.
SO NOW WHAT HAPPENS IF I TAKE THE POSSESSION OF THE PROPERTY WITHOUT PAYING REMAING DEPOSIT MONEY CAN THE COMPANY DO ANYTHING ?
Devajyoti Barman
(Expert) 12 June 2014
Refer to your lease deed to find out whether on early determination of lease you have right to withhold the security deposit.
If yes then you can do it, else they can file suit for recovering the money you have withheld.
Rajendra K Goyal
(Expert) 12 June 2014
Lease deed, more than one year, with 3 years lock in period with out registration may not be admissible in evidence till allowed by local law.
For deposit the terms of lease has to be referred, consult a local lawyer.
Sunil S Nair
(Expert) 12 June 2014
Terms of Agreement can only tell you what step should be taken which is best explained by the Experts Respected Devajyoti Barman & K Goyal Ji.
malipeddi jaggarao
(Expert) 12 June 2014
What do you mean by 3 years lock-in period? Whether this clause allows you to forfeit the deposit in case of early determination of lease?
You have spent so much money on furniture & fixtures to suit the requirement of the lessee, you can impress upon them that you sustain loss because of early determination of lease and you are not willing to refund the advance of three months. At the most they may continue for the remaining period and vacate the premises.
Sankaranarayanan
(Expert) 12 June 2014
How you invest such huge money for furniture and fixing, Better to talk with them and explain the loss will occur if vacate.
Surrender K Singal
(Expert) 13 June 2014
Lock in period may come in handy for you to forfeit deposit or adjust for next three months till they vacate
T. Kalaiselvan, Advocate 
(Expert) 14 June 2014
First of all this is an unregistered document which will not have any evidential value in the court, if contested. The lock-in period and early termination of the lease period is all waste exercise. You may note that if the tenant is taking the plea of using the unregistered lease agreement as receipt for the deposit amount and is serving you a legal demand notice demanding return of balance of deposit amount after deducting the justified dues, you may have to comply with his demands, hence it is advisable that better settle the issues amicably, you may find another tenant/lessee sooner or later.
