Penalty Clause in Registered Lease Deed
In a Lease Deed duly registered as required by Law, there is a clause that if the Cheque tendered for payment of the rent bounces, the lesser will be required to pay penalty @Rs 250 per day.
The Cheques bounce in totality and to worsen the matter, the lessee stops the payments of all the Cheques & makes no payments of the rent and therefore the Penalty amount in the last 2 years mounts up to Rs 15 Lacs around.
Will the Court allow this Penalty if a suit for recovery is brought on the basis of the registered agreement?
What are chances of success in such cases of recovery of mutually agreed Penalty?
