• Lock in period

I occupied a commercial space paying 75,000/- every month for a 700sq.ft. and paid 6 lakhs in advance. Because I was not able to get required licenses ( Trade license, Wine license ) due to some zoning regulations in the area to run my restaurant.I had to vacate within 6 months of occupancy though the lock in period was for 11 months. 
Now, the owner is not giving me the advance deposit because I vacated before the lock-in period expired. 
What is the course of action I can take?
Asked 6 months ago in Property Law from Bangalore, Karnataka
Religion: Hindu

You are liable to pay rent for balance 5 month period 

 

2) landlord can adjust the rentals against security deposit and refund you balance amount 

 

3) call upon landlord to refund balance SD 

Ajay Sethi
Advocate, Mumbai
63819 Answers
3881 Consultations

5.0 on 5.0

you need to check your agreement first as to what is agreed in case the tenant terminates license during lock-in period

is there any provision of the licensor being entitled to forfeit the rent of the balance lock in period, in case of earlier termination by licensee?

Yusuf Rampurawala
Advocate, Mumbai
4161 Answers
19 Consultations

5.0 on 5.0

Hello,

If your agreement states that there should be a notice period you have serve it , that is when you claim the security deposit and the landlord will have to pay it . Otherwise you have to send him the legal notice .

Regards

Swarupananda Neogi
Advocate, Kolkata
1019 Answers
2 Consultations

4.8 on 5.0

There is lock in clause of 11 months 

 

you vacated premises before 11 months 

 

hence you have to pay for balance period 

Ajay Sethi
Advocate, Mumbai
63819 Answers
3881 Consultations

5.0 on 5.0

See if the lock in period was there.and you failed to comply with the agreement then in that condition the owner can demand / retain advance upto value of the remaining period rent.

Though at this stage you can give legal notice asking to return the amount of advance. If he fails file a suit in.the court.

See there are not complete chance to succeed the matter but there are chances that from court he get to keep only the amount of real losses suffered by him.

Shubham Jhajharia
Advocate, Ahmedabad
17092 Answers
68 Consultations

5.0 on 5.0

See lockin period mean that you cannot breach agreement or vacate premises in that period which specifically implies that he can claim rent  for period though you can contest.

Shubham Jhajharia
Advocate, Ahmedabad
17092 Answers
68 Consultations

5.0 on 5.0

you need to mutually settle it as legally the contract will be having its binding effect even if you move court.

Prashant Nayak
Advocate, Mumbai
10308 Answers
16 Consultations

4.8 on 5.0

1. Well, since there was a lock in period the landlord is right to insist on continuing with this lease and you are stipulated to honour the terms of the agreement.

2. The failure of getting the requisite license is no ground for you you to breach its terms.

3. Now if there is any term in the lease agreement itself as regards escaping from this lock in period in certain unseen circumstances like this, then only you have remedy. otherwise you are liable to go by the terms of the agreement. 

Devajyoti Barman
Advocate, Kolkata
17130 Answers
246 Consultations

5.0 on 5.0

The agreement between you and your landlord should be abided and you have to follow the agreement you have entered last in your business that is immaterial for the land lord. This problem can only be sorted out between Lord and you to restore an amicable solution in case of legal recourse you will only be loser

Vimlesh Prasad Mishra
Advocate, Lucknow
5124 Answers
14 Consultations

4.9 on 5.0

The owner can deduct proportionate amount due to the lock in period  in force from the date of vacating the premises.

If he wants to deduct the entire amount, you may send him a legal notice and file a money recovery suit subsequently.

 

T Kalaiselvan
Advocate, Vellore
53783 Answers
651 Consultations

5.0 on 5.0

You cannot claim any execuses at this point of time.

You should have ensured all such things before getting into the agreement.

However you can isue a legal notice demanding your dues, let him give a reply after which you can initiate suitable legal actions for relief.

 

T Kalaiselvan
Advocate, Vellore
53783 Answers
651 Consultations

5.0 on 5.0

Send him a legal notice to recover your earnest deposit. Browse through the provisions contained in this rent agreement, so as to find a clause which counters the lock-in period clause.

Send the above legal notice through a lawyer

Vibhanshu Srivastava
Advocate, New Delhi
8309 Answers
126 Consultations

5.0 on 5.0

 

Dear Sir

You are entitled for refund of entire advance for not disclosing the material facts by the owner that is “building was zoned to be in a residential area, which was not informed during the agreement period” thus you may get issue a legal notice and if not budged you may file suit for recovery of money and compensation.

Kishan Dutt Kalaskar
Advocate, Bengaluru www.kishanretiredjudge.com
4167 Answers
102 Consultations

5.0 on 5.0

1. There should be some written ground & documentary justification for vacating before the lock-in period mentioned in the agreement.

2. Subsequent grievances AFTER vacating (without written grounds) CANNOT be taken into consideration for legal purposes.

Keep Smiling .... Hemant Agarwal

Hemant Agarwal
Advocate, Mumbai
2048 Answers
11 Consultations

5.0 on 5.0

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