I have registered on the 15th of January 2013, a leave and license agreement signed by both parties on the 11th of January 2013 for residential purpose for a period of thirty six months, from 15th of Jan 2013 to 14th of Jan 2016.
The license agreement states "The said License fee/ compensation shall be paud by the LICENSEE to the LICENSORS on or before 06th day of every month".
It further states "The LICENSEE to the intent that the obligtions shall continue throughout the term hereby created do hereby expressly covenant with the LICENSORS as follows: (1) To pay punctually to the LICENSORS the compensation/ license fee hereby agreed to be paid on the day and in manner mentioned herein above.... (j) That he will not make any alterations, modifications or changes of whatsoever nature and kind in the said licenced premises"
.It further states "Either party may terminate this Agreement by giving in writing to the other party, a notice of two months in advance of their intention to do so and after expiry of the period of two months, this Agreement shall stand cancelled and accounts between the parties shall be settled immediately, as agreed. It is further agreed that in the event of termination/ cancellation of this Agreement before its maturity period, all charges such as stamp duty, registration fee and other incidental expenses payable for the earlier termination/ cancellation of this Agreement shall be borne and paid by the party terminating this Agreement. It shall be binding on both parties herein to register the Cancellation Deed with the concerned registration office."
It further states" In case of default in payment of monthly compensation/ license fee or any breach of any terms and conditions of this agreement committed by the LICENSEE, shall notwithstanding anything stated in this agreement, entitle the LICENSORS to terminate this agreement by giving one month notice in writing of his intention to do so. In such event, LICENSORS shall be entitled to take charge of the said Lcensed Premises and the LICENSEE shall immediately evict himself from the said licensed permises without any excuse".
It states that the Mumbai courts have jurisdiction over any disputes and that the license is specifically covered under section 24 of Maharashtra Rent Control Act, 1999, Act 18 of 2000 with special reference to subsection 2 and 3 of section 24 thereof.
The current situation is that the licensee has not paid any license fee till date. We did not collect PDCs at the start of theagreement. During registration, we had given him our account number on a piece of paper to which he was supposed to transfer the license fee. On seeing that we hadn't received the licensee fee by the 6th, I had again emailed him the bank account details requesting him to deposit the amount. He has not done till date.
He had put a stickon flooring without consulting us, expense of which he claims to be Rs. 34,000 and he expects us to pay the same, though we have never agreed to do so.
My queries are as below
1. By not paying the license fee, is he in breach of the agreement and if so, if the agreement null and void? If tehre is a breach, can i issue a notice of a month for eviction? In such a case, the agreement got cancelled because of the LICENSEE's breach of terms, So will he be responsible for bearing the cancellation deed registration and associated expenses?
2. Is the agreement is still valid? If so, can i issue an eviction notice with a notice period of two months? In this case I will have to bear the cancellation deed registration and associated expenses.
3. After the notice period of evication is over, if he refuses to get the cancellation deed registered or refuses to vacate the premises, what can i do? Can the police help? or will i need to approach a court?
Thanks for taking time to reply to my query. I appreciate the same.