Ask tenant to vacate premises
2) enter into fresh agreement with C on receipt of advance and post dated cheque for monthly rentals
Commercial space: takeover of tenant by another
In my building I have given office space to Company A, represented by Mr. AA --via registered lease/rental agreement (for 3 years starting from - July 2017) They paid advance X. Next they claimed that company got aquired by Company B, represented by Mr. BB (another city)- new unregisted agreement for 11 months .. July 2019.. copy was couriered and got it signed. They said new cheque will be given signed by BB, and I will have to return advance to AA. But later they didnt pay any advance though in the fresh agreement it is mentioned that advance is paid by BB (without mentioning payment details).But later later said they will continue with existing arrangement and not to make money exchanges. Now they are saying this is again taken over by Company C, and needs a new agreement. I am concerned that there is no proper closure originally from A, that I may be liable to pay back advance to multiple parties, especially not knowing much about the takeover/buyout between these companies Please guide me on how to proceed and safeguard myself, is there any thing / documents, email proofs, affidavits I need to get from them? Thanks in advance
Asked 6 years ago in Property Law
Religion: Hindu
First answer received in 10 minutes.
Lawyers are available now to answer your questions.
8 Answers
Thank you sir,,, but it is essentially the same company, same employees, taken over for second time. Can I make BB give cheque for security deposit, and return that amount to AA, so that agreement terms are met. Will it help if I get documents from them that reveals absolute takeover of company A by company B. thereby making the new company automatic new hier/lessee, that allows them staying without paying advance again?
Asked 6 years ago
Now execute agreement with C that lease deed was executed with A and this much interest free advance was paid. Later A was acquired B and all the liability and rights were transferred to B and Now C has acquired B and consequently all rights of B transferred are to C.
Don`t return anything.
Execute fresh lease deed with C.
- A registered lease Deed can only be cancelled through a registered Cancellation deed, and the tenant will have to sign the same , and then it can be present for registration in the office of the sub-registrar.
- Since you have given office space to Company A , by way of a registered lease deed for 3 years, hence the Company A is the tenant under the signatory of Mr.AA, So,without cancelling the said lease deed,Company B, cannot continue in the tenanted premises.
- Further , after passing of three years , the said registered agreement has already expired.
- Now when you entered a new agreement with Company B, then with the approval/consent of Company A needed to adjust the paid advance amount.
- Now , when the company has taken over by C , then you should to enter a new agreement with them.
- You should take an affidavit /deceleration separately from the Company C,for adjusting the same, and mentioning all the details of takeovers. Otherwise you may face trouble in future , being in dark .
You can ask B to give security deposit and return the same to A
obtain documents of takeover
Dear Sir,
You are unnecessarily accepting their cunning proposals. Immediately you may terminate their tenancy and find out new tenant. Otherwise no court can understand your case and it will become very difficulty for you to prove relationship of tenancy between you and any of them. It will get difficult to evict them. Get issue legal notice under section 106 of Transfer of Property Act
you should not returned the advance paid by A because new companies have not given you any advance.
And in this case you will not be liable to su advance to B or C.
in case you want safeguard yourself you can make a triparty agreement with B and C regarding advance that you will not be liable to refund advance to previous tenant and C should pay advance to B.
You have let out your property on a lease or rental agreement with the original tenant with conditions stipulated therein.
If the original tenant is giving up his business in favor of another company, it is his problem and not yours.
You should confine yourself to the agreement and the conditions therein alone.
You cannot dance to the whims of tenant.
You can adhere strictly to the agreed conditions alone.
If the tenant breaches the conditions or acting in a manner detriment to the lease agreement then you can invoke the termination clause to terminate the agreement.
You do not have to entertain the tenant's gimmicks.
You have to be very strict about it.
You will be trapped and would suffer legal complications by doung as what you propose.
The very purpose of the agreement will be defeated.
You may discuss with an advocate at length before jumping into any conclusion in haste.
Safeguarding your interests is in your hand.