Dear Members,
I need your valuable guidance in the following matter:
A Ltd. and B Ltd. entered into a Term Sheet in 2005 wherey A Ltd. agreed to lease a property to B Ltd. upon completion of construction of a Mall. A covenant was inserted in the Term Sheet that after receipt of Completion Certificate, final Lease Deed will be executed. The lock-in period for B Ltd. was agreed to be 3 years from the execution of Lease Deed. And in case of termination within lock-in period, B Ltd. has the right to forfiet security deposit of approx. Rs. 15 lakhs.
B Ltd. has occupied the premises wef March 2009, however, no lease deed has been executed so far. A Ltd. has also not informed whether the Completion Certificate has been received or not, however, it is understood that it must have been received.
I want to know whether the lock-in period will commence from the execution of Term Sheet as the lease deed has not been executed so far due to failure of A Ltd. to give notice about receipt of CC. B Ltd. wants to terminate the Term Sheet without losing the security deposit amount.
Kindly give your opinion in the above matter.
Thanks & Regards,
Naveen
