• Reply to collection agency

Last year, I had started a business and had hired a office space from Regus - a company that provides office spaces on rent

Some facts regarding the conditions for Regus are:

 1. I had to maintain about 2 months rent as deposit

 2. Monthly rental had to be paid in advance, failing which they would lock me out of my office

 3. Early termination of contract could not be done by me, only they could terminate the contract before its 1 year term. (I somehow missed this part, I thought the notice was mutual.)

As it turned out, my business venture did not do well and I had little money left. Since I could not pay the rental for the next month, I decided to vacate the premises. I sent an email explaining my situation and requesting them to terminate the contract and refund my deposit in good faith: I was crunched for funds at the time. They replied saying that there is no possibility of early termination and I could get my deposit back only after serving the full term. 

I left it at that and focused on getting a job. I hadn’t had any communication with them since then.

I recently received an email from an agency claiming to represent regus asking me to pay rent for the remaining period of my contract (didn’t even subtract the deposit amount!). I initially replied saying that I haven’t used Regus services since June 2017. The agency is persistent with their emails and are now threatening to initiate legal action.

What are my options going forward? I find it absurd that under their conditions, they block access on not paying advance rent and then claim payment for services that they have denied. 

Any guidance on responding to them is appreciated. Specifically, is my line of thinking correct? Can I tell the agency that I will only deal with the company directly? Can I wait for a legal notice and then reply or ask for settlement?
Asked 4 years ago in Civil Law

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14 Answers

Refuse to pay rent for remaining period as you had vacated the premises

2) however under terms of contract you are liable to pay rent as the lock in period was one year

3) in the event any legal notice is issued engage a lawyer and reply to legal notice

4) you must reply to email received by you

Ajay Sethi
Advocate, Mumbai
87938 Answers
6207 Consultations

5.0 on 5.0

Yes you may say that to deal with the company directly. The signing of regus contract should have been dealt properly as they keep one year clause but that could have been changed.

Better to sort out the issue as this is common for the as they face these issue on every month and use to take legal action. In court it will be deficult to stand as the contract should be executed.

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

Hello sir , it is advisable to send them a reply to thier legal notice ... There is nothing much they can do legally .. They have retained your deposit , this is only what they can claim from you at max..

Hemant Chaudhary
Advocate, Gurgaon
4619 Answers
67 Consultations

4.9 on 5.0

1. Have they blocked your access to your office space?

2. Did you vacate your office and returned possession of your said office?

3. At least have you issued a letter to them informing that you have vacated your office and have terminated the contract?

4. If yes, then they can not claim any amount from you and rather you have the right to claim back the deposit you have kept with them since the said Agreement is absolutely one sided and invalid.

Krishna Kishore Ganguly
Advocate, Kolkata
26602 Answers
726 Consultations

5.0 on 5.0

Basically, there was a lock-in period of one year, meaning there by that you guaranteed Regus that you'll be not vacating the tenanted premises within 12 months and would pay them rent for the said period of 12 months, come what may!

Now, don't respond to this collection Agency. Just tell them you'll deal with the co. directly. At any time Regus send you a legal notice, send them a reply through a lawyer. The rent agreement is lopsided and this is the only defense available to you.

Vibhanshu Srivastava
Advocate, New Delhi
9426 Answers
245 Consultations

5.0 on 5.0

Dear Sir,

You can approach the civil court and on the same day of filing of suit get an mandatory order to allow you to enter your office. You can claim damages as counter claim as they not allowed to enter the office and blocked the access thus you could not run your business. Just stay in peace. If legal notice is sent then reply claiming damages of Rs.5 lakhs. He may not go to Civil Court, even if goes never succeed. Nothing to worry.

Kishan Dutt Kalaskar
Advocate, Bangalore
6050 Answers
381 Consultations

4.8 on 5.0

send them a legal notice stating them to abide by the law of land. its not necessary that if they make any statement and that will become law. you send them a notice to refund the deposit deducting the two months rents after you have send them notice for vacating the premises or talk to a lawyer and take legal action for recovering the deposit from them. if you need any assistance call me on [deleted]

Anwar Zaidi
Advocate, Mira Bhayandar
231 Answers

4.5 on 5.0

Dear client: need not worry. None of your cheque has bounced hence the role of collection agency in the matter is totally ruled out. If the parent complany is doing so It's totally illegal.

Secondly going by the content of the rent agreement it's sound totally a void agreement. The clauses aŕe one sided leaving no room for the other party to react.

Kindly tell them issue notice n Approach you through a court notice , tell them you will file your reply in court against illegal means & illegal àgreement being used to cheat the tenants.

Vijay Sahni
Advocate, Delhi
28 Answers

4.0 on 5.0

Better to send them reply stating that agreement is absolutely one sided and unjustly enriching them at your cost. If you have served them notice and stated that you are terminating contract then they can not claim any amount from you and rather you have the right to claim back the deposit you have kept with them. Abstain from paying rent for remaining period as you had asked them to rescind the contract l.

Swarnarka Chowdhury
Advocate, Mysore
1878 Answers
5 Consultations

5.0 on 5.0

Yes do the same and deal with company directly. If you get the legal notice then reply the same through a lawyer.

Prashant Nayak
Advocate, Mumbai
27267 Answers
88 Consultations

4.4 on 5.0

Dear Querist

It will be better to wait till the legal notice if they issued to you then only reply to them otherwise no need.

Informed to collection agencies that stop calling you otherwise file a complaint against them for harassing you.

The collection agencies can not be harassed a person by calling or threatening by any means for any dues.

Feel Free to Call

Nadeem Qureshi
Advocate, New Delhi
6220 Answers
302 Consultations

4.9 on 5.0

A notice from a lawyer can still be a legal step but engaging the collection agency for recovery is not at all a legally valid move.

You have given a correct reply stating that they are not the owners, let the company send the demand notice.

You deny all their alegations and finally conclude that you will initiate legal actions both through court and local police station for such atrocity.

T Kalaiselvan
Advocate, Vellore
78097 Answers
1543 Consultations

5.0 on 5.0


Do not make any reply to the company, as and when you receive any legal notice then only proceed to talk with regus

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

Also, note that if for the purpose of recovery, harassment on part of the said company increases then you may lodge a police complaint against them for criminal intimidation

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

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