Tenant moved out during the free period, not paying rent

Mayank Arora (Querist) 22 November 2013 This query is : Resolved
Please help me regarding this query

I own a small shop. Recently, I gave it on lease to a company. As per the agreement, the deposit is Rs 1 lakh and rent is Rs 30,000 per month. The first 3 months were rent-free for interiors and construction.
There is no clause of a lock-in period or a notice period in the agreement, as I thought I had more than 3 months rent as security deposit already.

Two months after the lease, the company told me that they are ending the lease and asked for a refund of the deposit. They maintain that the lease does not have a notice period and hence they are allowed to terminate the agreement anytime, even the next day.

The problem is since the first 3 months were rent-free, they are not even paying the rent for these 2 months.

1) Are they allowed to terminate the agreement without any notice?

2) Can I ask for the 2 months rent in this scenario, even if first 3 months were rent free?

3) Can I withhold the security deposit?

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H. S. Thukral (Expert) 22 November 2013
In this case, since there is no term fixed for lease, it becomes a lease on monthly basis which can be terminated by giving 15 days notice. Hold on to security deposit and in case the lessee files suit for recovery, file counter claim for damages.

ajay sethi (Expert) 22 November 2013
you ought to have got the deed vetted by a lawyer . company is correct in its stand . if there is no lock in period no notice period company can terminate leave and license agreement. return the security deposit.

Rajendra K Goyal (Expert) 22 November 2013
Agree with the expert ajay sethi ji, nothing more to add,

Devajyoti Barman (Expert) 22 November 2013
You can not withhold money except making any charges on them.
You have to pay a price for not mentioning a a lock in time.
Since money is in your hand you better make a hard bargain to get hold of some money.