Solutions for rental agreement expiring during the lockdown

This query is : Resolved 
 


Querist : Anonymous (Querist)
30 May 2020

I own a commercial property in Delhi whose rental agreement/lease is expiring in a few days during the lockdown.

I don't live in Delhi, but another place not very close either.

What are my options in the current situation?

Are the expiring rental agreements considered extended for the period of lockdown? Or any possibility of extending the rental agreement entirely online?

(Sorry for being anonymous, i need to protect my identity)


Rajendra K Goyal (Expert)
30 May 2020

If the lessee /tenant request, you can inform through e-mail that the lease / rent agreement time is increased for mentioned time on mentioned conditions as agreed on phone. The lease deed / rent agreement would be executed as soon as possible after the lockdown. Please note to send hard copy of such terms by Dak / courier and ask to return accepted copy by return Dak. The lessee can give consent through e-mail followed by accepted hardcopy.
Execute lease deed / rent agreement based on this document after the lockdown is over.

K Rajasekharan (Expert)
30 May 2020

The section 32 and 56 of the contract act would be of some help to those who fail to perform his part of the contract due to theĀ  impossibility beyond their control thrust upon them by the Covid lockdown. No party in a contract cannot be put to any disadvantage occurred due to none of their fault but of the extraneous Covid lockdown.

An article on this issue by me linked below may, perhaps give you some basic framework to deal with this issue. The article is at

http://lawwatch.in/2020/04/18/force%20majeure/

Raj Kumar Makkad (Expert)
30 May 2020

As the restrictions of moving from one place to another have got lifted on today effective from 01st June, 2020, you may personally come to Delhi to have one to one talk with your tenant. Lockdown do not permit automatic extension of rental period rather it depends upon the mutual settlement of the parties concerned. None can now take the shelter of lockdown especially when there are no practical restrictions to take appropriate decision.

Asgher Mahdi (Expert)
31 May 2020

Suggest you to send a letter of extension either through mail or whatsapp message stating your choice as agreed in the rental agreement by showing the reasons of corrona pendomic as you may not able to come in presence personal appearance, follows by your personal appearance thereafter the situation is normal and then do the legal formalities. This can be done,if you are sure and confident through known attorney from Delhi itself.

Rajendra K Goyal (Expert)
31 May 2020

Whether the tenant / lessee has raised any objection / concern on the issue, or is not agreeing to terms and conditions on phone? Certain relaxation has been given in lockdown you may visit to Delhi for executing Lease Deed / Rent agreement.

Dr J C Vashista (Expert)
01 June 2020

It is your decision whether you are interested in taking over possession of rented accommodation or continue the tenancy.
Force de majure shall not help the tenant, if you do not want to extend / continue the tenancy.

Dr J C Vashista (Expert)
01 June 2020

Even if you have decided to extend / continue tenancy you are required to execute fresh rent agreement as the existing shall lapse on expiry of its term.

Raj Kumar Makkad (Expert)
01 June 2020

You may update and can get further advice if required.

Rajendra K Goyal (Expert)
01 June 2020

Waiting for the required information from the author so that advice can be given accordingly. I


Querist : Anonymous (Querist)
01 June 2020

It is just out that Delhi government has sealed its borders for now. It would not be practically possible for me to visit to extend the rental agreement, in such circumstances.

The rental agreement has it that the lease is for 9 years, but the agreement was for 3 years (valid until 31 May 2020), and the parties would renew the agreement for another 3 years after that, and subsequently do the same once more.

The tenant seems to be willing to continue with the tenancy, and seems to be ready to execute the renewal for 3 years, as described above.

Should I send a message over WhatsApp that I will be able to visit Delhi and execute the agreement, once the situation eases, considering the ongoing covid-19 pandemic and closure of borders around Delhi?

Does the message have to be a letter, or a simple text message over WhatsApp would suffice?

Thank you to everyone for their valuable replies.

Rajendra K Goyal (Expert)
01 June 2020

The agreement can be done at later date effective from date of expiry of present agreement provided all parties agree to it. You can exchange consent through e-mail / WhatsApp at present.

There is provision to renew the tenancy, tenant and landlord want to renew, renewal agreement formality can be done at later date effective from date of expiry.

Raj Kumar Makkad (Expert)
01 June 2020

Whatever be the mode of the communication in writing, may be got adopted showing your undertaking to extend the agreement for further period of 3 years but it shall be better if you obtain a request on the part of the tenant on whats app or through mail and which may be got accepted by you. The same shall also be regarded as an agreement.

Rajendra K Goyal (Expert)
02 June 2020

It is not a big problem till there exist any major change proposal in terms of tenancy and any of the party do not want to agree.
Agreement can be executed from back date if all parties agree to it.

Dr J C Vashista (Expert)
03 June 2020

If you have decided to continue tenancy a fresh lease deed operative from 01st June 2020 should be executed and registered.

Raj Kumar Makkad (Expert)
03 June 2020

It depends upon the mutual agreement of the parties from which date to start fresh tenancy.

Rajendra K Goyal (Expert)
04 June 2020

Intension of the querist seems to continue the agreement from the date of expiry of the current agreement. If they propose to have fresh tenancy, they can have.

Raj Kumar Makkad (Expert)
04 June 2020

Mutual agreement contains all options open for the parties.

Rajendra K Goyal (Expert)
05 June 2020

Practically there seems no problem. The Author can execute rent agreement from date of expiry at later date.

The author do not want to get his premises vacated.

Consent to continue the rent, e-mail / other methods would do.

If tenant defy the understanding, owner has right to serve notice for vacating.



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