• Lease period over during lockdown and owner not in a position to refund lease amount now

Hello Sir,
 I am the owner and leased out my house to the tenant for Rs.21 lakhs for 3 years.The lease period got over on 23rd March 2020.Now the tenant is demanding to return the lease amount immediately as he wants to vacate the house.But during this period of lockdown,I am not getting new tenants and unable to refund lease amount to the tenant in this difficult situation.The lockdown might get extended that I am not sure.I need a time of 3 months more to refund the lease amount.The tenant wants lease amount immediately as he says the lease period got over on 23rd March 2020 during lockdown period.How should I proceed on this as I need 3 months to refund lease amount to the tenant.Please help.
Asked 1 month ago in Property Law from Bangalore, Karnataka
Religion: Hindu

On expiry of lease period you have to refund the security deposit taken by you 

 

2) the terms of lease are sacrosanct 

 

3) you have to refund security deposit or lease amount on lessee vacating premises 

 

4) inform the lessee that you will refund amount on lock down being lifted 

 

5) most probably lock down would be e tended till month end 

Ajay Sethi
Advocate, Mumbai
74388 Answers
4450 Consultations

5.0 on 5.0

Hi

Since it is a total lock down, you can claim force majeure clause and commit to your tenant that you shall pay him by June 30. 

Even if force majeure clause is not there in rental agreement, you can take umbrage under sec 56 of Indian contract act and issue legal notice to your tenant . 

Please contact a lawyer with copy of your rental agreement and issue the notice. 

No worries

Rajgopalan Sripathi
Advocate, Hyderabad
1817 Answers
337 Consultations

5.0 on 5.0

What do you mean by refund leased amount ? Were the rent component was interest on amount ?

You can make part payment and rest refund in intervell of three months. Not finding new tenant is not an excuse to defer refund.

What was the terms of lease deed regarding refund ? And till house not vacated, don't make full refund.

Yogendra Singh Rajawat
Advocate, Jaipur
18433 Answers
22 Consultations

4.6 on 5.0

See as per the agreement you have to pay him amount back since lock down is not effecting the performance of contract.

Therefore you have to refund the amount though you can talk to tenant and ask for some time. After lockdown is over you can pay the amount.

Shubham Jhajharia
Advocate, Ahmedabad
24271 Answers
96 Consultations

5.0 on 5.0

Hi

You can reply by saying that you are not capable of paying the lease amount due to lock down.

If he mentions the conditions of rent agreement then reply with mentioning the reason of force majeure.

You are not bound to pay back this payment during this period of lockdown.

Thanks

Rahul Jatain
Advocate, Rohtak
2320 Answers
4 Consultations

4.9 on 5.0

hi, please check the terms of the agreement, what was the notice period for the tenant to leave the house if he is going as per the agreement technically you will have to refund. However, as the country is in lockdown, therefore, time should be given to returning the money. You request your tenant and explain the situation. You may also come to an agreement that you will return the money in a particular time period.

However, if the tenant is adamant he might send you legal notice and drag issue to court, just don't be afraid as courts are only hearing the urgent matter and there are chances matter will not go to court due to this even if it does it will be in your favour.

Varnika Singh
Advocate, New Delhi
312 Answers
2 Consultations

4.9 on 5.0

Dear Sir,

You are suggested to write an humble email or letter to the tenant stating the whole situation and request him to give some time due to the present pandemic situation and also express your willing to return the amount as and when the situation is normalised. it is expected that the tenant will not be able to do anything, if you take this recourse. 

Ganesh Singh
Advocate, NEW DELHI
4398 Answers
9 Consultations

4.5 on 5.0

1. You can take recourse to the Clause in the Lease agreement that states that in case of Act of God ( in the present situation Covid19), the agreement will be kept in suspended animation, till the situation comes back to normal.

2. Because the present lockdown prevailing throughout our country due to Covid19 is an act of God and advice your tenant accordingly that he has to wait till normalcy is restored.

Shashidhar S. Sastry
Advocate, Bangalore
2618 Answers
161 Consultations

5.0 on 5.0

Hello,

  1. Usually in an Agreement there is a clause named "force majeure" which  is meant to cover unforeseeable circumstances that prevent someone from fulfilling a contract. If such a clause is not there, you can still send a notice to the tenant stating that  due to "force majeure" you are unable to fulfill the conditions of the lease and shall comply within three months and he can continue in occupation on the mean time.

     

  2. In case the tenant refuses to budge and sends you a reply, you may offer a compensation for the unforeseen delay or offer to pay in part if agreeable.
  3. Ensure that take a lawyer's assistance in drafting and sending the notice/reply etc.

S J Mathew
Advocate, Mumbai
2667 Answers
110 Consultations

5.0 on 5.0

Check the refund policy and time limit which mention in the lease agreement between tenant and land lord. Also check the notice period. So better you did not to act, please wait for getting a legal notice from tenant as per demands. It will take time and may get time as per your wish.

Ajay N S
Advocate, Ernakulam
3437 Answers
67 Consultations

5.0 on 5.0

1. The lessee is right in his own way to demand security deposit immediately on vacating the premises. 

2. Your failure to get new tenants in normal or extra ordinary circumstances is no excuse to avoid paying his security deposit. 

3. Do note any delay in returning his security deposit would attract penal interests on the money for the delay caused in repaying. 

So act accordingly. 

Devajyoti Barman
Advocate, Kolkata
19515 Answers
277 Consultations

5.0 on 5.0

You need to pay him immediately as per the agreement. If you take 3 months more you need to pay him interest for the same

Prashant Nayak
Advocate, Mumbai
18517 Answers
34 Consultations

4.6 on 5.0

The corona problem arose now only whereas the lease agreement was entered three years ago and you were very well aware of the expiration of the lease period.

Thus it becomes your duty to be ready to return the deposit amount on the date it became due.

You cannot quote that there was no tenant coming forward hence you cannot return the amount.

That is your problem and not the problem of the tenant, hence you are liable to return the amount on the due date whether you got a new tenant or not.

You have no excuse nor there is any solution for this in law.

However you may request the tenant to bear with you to return the amount in due course of time sooner the national crisis comes to an end.

You may remember that you cannot stop your tenant from adopting legal steps to recover the mount with interest for the period of delay.

T Kalaiselvan
Advocate, Vellore
64348 Answers
834 Consultations

5.0 on 5.0

Number of lawyers on this website from Bangalore having good ratings 

 

contact any of them 

Ajay Sethi
Advocate, Mumbai
74388 Answers
4450 Consultations

5.0 on 5.0

Dear Sir/Madam,

You are suggested consult the kannoon platform for consultation with advocate of your choice and such reference can't be given here.  

 

Ganesh Singh
Advocate, NEW DELHI
4398 Answers
9 Consultations

4.5 on 5.0

You can find a lawyer from Bangalore in this forum itself.

If you dont find any one suitable to your requirement then you may visit the court bar association after the courts are reopened post lifting of lock down and select an advocate of your choice.

 

T Kalaiselvan
Advocate, Vellore
64348 Answers
834 Consultations

5.0 on 5.0

1. You can engage an advocate from this website from your city for notice.

Shubham Jhajharia
Advocate, Ahmedabad
24271 Answers
96 Consultations

5.0 on 5.0

You can contact me also for the same. I can send the same for you. Contact me in kaanoon on 9a7g6g9g4e9g0f9f1a1.

Prashant Nayak
Advocate, Mumbai
18517 Answers
34 Consultations

4.6 on 5.0

SIr eventually you will have to refund the amount as the lock down will not effect the terms of the contract, you can pay him some amount under your capacity and take an extension for sometime, if in case he is adamant, let him him send you a legal notice and go to the court, by the time he does all these things 2-3 months will be gone and you will get time to pay back the money. worst case if he manages to reach the court early, the court will grant you sometime as it is an unusual situation. 

Archit Vasudeva
Advocate, New Delhi
118 Answers

5.0 on 5.0

Notice can be send from anywhere by any lawyer.

Yogendra Singh Rajawat
Advocate, Jaipur
18433 Answers
22 Consultations

4.6 on 5.0

In the present context the law if Force Majure is not applicable.  This rule has no blanket applicability and by sending notice you would burden yourself more with penal interest. 

Non availability of tenant is no excuse to avoid payment of security deposit and if you delay in paying it the tenant on the contrary can file case of cheating which would cause more loss to you both in money and reputation. 

Don't cheat his money. 

Devajyoti Barman
Advocate, Kolkata
19515 Answers
277 Consultations

5.0 on 5.0

1. You can refuse to pay refund of lease deposits during lockdown period due to forced Majeure which alters the contract conditions due to unavoidable circumstances.

2. You can send him a written notice that you are not able to refund the money due to lockdown of corona virus outbreak and need three months time to refund the deposits. 

Mohit Kapoor
Advocate, Rohtak
7885 Answers
2 Consultations

5.0 on 5.0

Better you may select any one of the advocate registered in this website all are good and efficient. 

Ajay N S
Advocate, Ernakulam
3437 Answers
67 Consultations

5.0 on 5.0

there are number of lawyers in this website from banglore having good ratings . you can check their profile on the website. 

Mohammed Mujeeb
Advocate, Hyderabad
15449 Answers
7 Consultations

4.5 on 5.0

Dear Sir.

Why you are so afraid of. Ask him to go to civil court and recover the same legally, which take years together. Most of the landlords virtually not returning the leased amount for years together. You seems to be more loyal to the laws of the land. Let him issue legal notice and then approach the advocate to get issue a legal reply notice to him which may shut his mouth closed. He cannot do anything. Lodge police complaint online he he threatens you in any manner.

Kishan Dutt Kalaskar
Advocate, Bengaluru
5279 Answers
171 Consultations

5.0 on 5.0

Hi, send a notice/intimation to this fellow citing the covid-19 situation and press for the desired extension from him which you want.

This notice can be send through a local lawyer. 

Vibhanshu Srivastava
Advocate, New Delhi
8957 Answers
153 Consultations

5.0 on 5.0

You may get in touch to get leads as regards to Bengaluru lawyers. 

Vibhanshu Srivastava
Advocate, New Delhi
8957 Answers
153 Consultations

5.0 on 5.0

Immediately upon expiry of lease, you are duty bound to refund the security deposit amount to tenant.

At the  most, you can request him to wait for some specified time to refund.

You can contact one of the panel Advocate's from Kanoon's Portal for doing the needful.

Instead of you reacting, wait for him to react, let him make his move first, accordingly you take it forward.

S Srinivasa Prasad
Advocate, Hyderabad
1867 Answers
7 Consultations

5.0 on 5.0

Anyone can do.

I cn also

Rahul Jatain
Advocate, Rohtak
2320 Answers
4 Consultations

4.9 on 5.0

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