LEGAL NOTICE TO APPOINT ARBITRATOR IN CASE OF DISPUTE ARISING OUT OF LEASE AGREEMENT EXECUTED BETWEEN A LANDLORD AND A TENANT
LEGAL NOTICE TO APPOINT ARBITRATOR IN CASE OF DISPUTE ARISING OUT OF LEASE AGREEMENT EXECUTED BETWEEN A LANDLORD AND A TENANT.
Regd. A.D/Speed Post/ Courier
Dated: …………
M/s ___________________
Address:__________________________
Duly represented by its __________________
LEGAL NOTICE
Under instructions from & on behalf of my client M/s. __________, presently having its Registered office: ________________ duly represented through its _________________________, I hereby serve upon you the following Legal Notice:-
1. That you the Addressee have entered into with my Client(s) above named a Lease Agreement dated ________ vide which my Client(s) above named has leased to you the Addressee, its premises known as “Commercial Unit bearing No. ______________________ admeasuring ________ sq.ft. of carpet area with right to use the common areas & facilities (hereinafter referred to as the “Demised Premises”)”, initially at a monthly rent of Rs.________/- plus applicable service tax and on other terms and conditions as contained in the said Lease Agreement dated ________.
2. That the important terms & conditions of the Lease Agreement dated ________ are as under:-
Clause No._____. Premises:
The Leased Premises is commercial unit bearing No-_________________________ admeasuring ________ Sq. Ft of carpet area with a right to use the common areas & facilities in said property more particularly mentioned in Annexure —, which is the part of this Agreement.
(b) Clause No.____. Purpose of Lease and commencement of lease Agreement:
The Lessee is taking Lease Premises for commercial/business purposes including establishment of Warehouse/Godown by the Lessee for storage of medicines, equipments, goods, containers etc. and office etc. and such other purposes as may be decided by the Lessee from time to time. The Lease Agreement has come into force on __________________.
(c) Clause No._____. Term/period of the Lease Agreement:
In consideration of the rent hereinafter reserved and agreed to be paid by the Lessee and the Parties agreeing to comply with the covenants and conditions mentioned herein, the Lessor hereby grants BY WAY OF LEASE to the Lessee, "the Leased Premises", for a total period of ____ years & one month (hereinafter referred to as the "Lease Period") with effect from commencing after the expiry of the rent free period mentioned in Clause ____ herein, Upon the expiry of the Lease Period, the Lessee shall have the first right to the lease of the leased premises by the Lessor and the Lessor shall extend/renew the lease on receiving specific request in this behalf from the Lessee for such further period as may be mutually agreed upon between the parties and thereon a fresh Lease Agreement shall be executed between the parties.
(d) Clause No.___. Possession of the leased Premises and Commencement Date of Lease Agreement:
The Lessor has handed over possession of the Leased Premises on __________ to enable the Lessee to complete its interior works for commencement of their business. The Lease Agreement has come into force from ________________.
(e) Clause No.___. Lease Rent and Escalation:
i. The Lessee shall pay monthly lease rental (hereinafter referred to as the "Lease Rental") to the Lessor @ Rs. __________/- (Rupees ________________ Only) per month plus the applicable service tax, if applicable, only by way of an account payee cheque in the name of the Lessor. The Service Tax, if and when applicable, shall be payable, the Lessor shall provide Service Tax Number to the Lessee.
ii. The lease rentals payable by the Lessee to the Lessor is inclusive of all the assessment cess, duties, taxes, ground rent, property tax, levies and other property related taxes and all the increases therein in respect and applicable for "the Leased premise" from time to time.
iii. The Lease rentals shall be payable by the 10th day of each calendar month and the same shall be subject to deduction of TDS and other statutory deductions by the Lessee.
iv. The service tax to be paid by the lessee, whenever it becomes payable but the Lessor shall provide the Services Tax Number to the lessee.
v. The lease rental amount will be increased by ___% after every _________ on the last lease rent paid. However, the first increment will be from ___________.
vi. The terms of the lease rentals and commencement date of this Lease Agreement is agreed to and acknowledged by the Lessor as adequate and fair and the same shall not be disputed by the Lessor at any point of time in future on any ground.
(f) Clause No._____.Security Deposit:- (Wrongly Numbered as clause no.____ in the Lease Agreement).
i. That the Lessee shall, in addition to the monthly rental, pay to the Lessor a total sum of Rs. ________/- (Rupees ________________ Only) as refundable, interest free Security Deposit which is equivalent to _____ months' Lease Rentals.
ii. The Lessee has paid the said amount vide cheque no.- _________ dated __________ drawn on _________ for Rs. __________/- (Rs. __________ Only) in favour of the Lessor and the Lessor hereby acknowledges the receipt of the Security Deposit from the Lessee.
iii. The said interest free refundable Security Deposit shall be returned by the Lessor to the Lessee on the expiry of this Agreement or early termination, after adjusting outstanding dues such as electricity, water and telephone charges only, if any.
(g) Clause No.___,Termination of the Lease Agreement
i. Termination:
(A) The Lessee shall have the option to terminate the said Lease Agreement by giving _______ months' notice in writing to the Lessor of its intention to do so with or without assigning any reason. However there is a lock in period of _____ months from the date of execution of this Lease Agreement.
(B) If the Lessee fails to pay the Lessor, the Lease rental for a period of _______ consecutive months, in that eventuality the Lessor will have a right to terminate the Lease Agreement, by giving _____ Months Notice to the Lessee, provided only if the default in payment of lease rent is not rectified by the Lessee during the notice period.
(C) If the whole or any portion of "the Leased Premises" shall at any time be destroyed, damaged or becomes un-usable by a Force majeure event so as to render the same substantially inaccessible or uninhabitable, the Lessee shall have a right to terminate this lease Agreement by giving _____ days written notice to the Lessor without any further cost of liability.
(D) The Lessee may by giving a shorter written notice of _____ days, terminate this lease in the event any action of any statutory, regulatory or other statutory authority interferes with the Lessee's use or quiet enjoyment of the Premises.
ii. Expiry of the Agreement: On the expiry of this Agreement or earlier determination of the Lease Agreement, the Lessor shall refund to The Lessee the Security Deposit amount in full by way of Demand Draft. In both the cases i.e. either on early termination or expiry of the Agreement, the Lessee shall hand over the vacant and peaceful possession of the premises to the Lessor. In the event that the Security Deposit is not handed over by the Lessor to the Lessee after the expiry of notice period or on expiry of leased period, the Lessor agrees to pay to the Lessee all consequential liquidated damages and the Security Deposit with Interest @_____ % per annum for the period of delay and Lessee shall further be entitled to withhold the handing over of the vacant peaceful physical possession of the Leased Premises and shall be allowed to use the Leased Premises without any liability to pay any rent, maintenance or other charges till the Security Deposit is fully refunded.
(h) Clause No.____. Notice by the parties:
i. Upon receipt by the Lessee of any notice order, direction or any other thing from any government, semi - governmental, administrative or judicial authority (including notices affecting the rates, taxes or other outgoings in respect of the Leased Premises payable in whole or in part by the Lessor)the Lessee shall promptly notify the Lessor. Likewise, the Lessor undertakes to promptly notify the Lessee in writing of any notice received by the Lessor from any government, semi - governmental, administrative or judicial authority in respect of the Leased Premises, which may adversely affect the interest of the Lessee as a lessee of the Leased Premises.
ii. Any notice, demand, consent or other communication (a Notice) given or made under this Lease Agreement:
Must be in writing and signed by a person duly authorised by the sender;
must be delivered to the intended recipient by hand or by post at the address last notified by the intended recipient to the sender:
to Lessor to Lessee
____________ ____________
_______ ____________ ____________
(i) Clause No.____. Dispute Resolution:
(i). Any dispute or difference arising between the parties hereto in relation to this Agreement shall be settled by mutual discussion to be held between the Lessor and the Lessee;
(ii). In case the mutual discussion referred to in clause(i) above fails to settle the dispute or difference between the parties, within a period of _____ days from the date when the matter is referred to by either party to the other, then all such disputes, differences or claim arising out of the lease Agreement or as to the construction, meaning or effect hereof or as to the rights and liabilities of the parties hereunder shall be settled by Arbitration in accordance with the provisions of Arbitration and Conciliation Act, 1996 or any statutory amendments thereof and shall be referred to the sole arbitration of a sole arbitrator to be nominated jointly by the Lessor and Lessee. In the event of death, refusal, neglect, inability or incapacity of the person so appointed to act as a sole Arbitrator, both the Lessor and Lessee jointly may appoint a new arbitrator. The Arbitrator shall have summery powers and his decision shall be final. The proceedings of the arbitration shall be held at Delhi.
(j) Clause No._______. Jurisdiction:
The Courts at _______ shall have exclusive jurisdiction to try all suits or proceedings, matters or things in connection with this Agreement.
3. That as mentioned in clause __ of the Lease Agreement dated ________, the Lease Agreement had come into force from ________, and the possession of the “Demised Premises” had already been handed over to you the Addressee by my Client(s) above named on ________.
4. That thereafter my Client(s) above named had been receiving the Lease Rental from you the Addressee as and when the rents are due in terms of the Lease Agreement dated ________, and you the Addressee had paid Lease Rental to my Client(s) above named up to ________.
5. That after _______, you the Addressee stopped making payment of Lease Rental to my Client(s) above named.
6.. That thereafter my Client(s) above named received a Notice dated ________ from you the Addressee informing my Client(s) above named that you the Addressee wish to vacate office located at _____, and would continue to occupy the office situated at _____. The said Notice also stated that this intimation may be treated as notice for termination of the Lease Agreement as per the clause of Lease Agreement entered by you the Addressee with my Client(s) above named for the same.
(i). That my Client(s) above named thereafter had vide its letter dated _____ sent its reply to you the Addressee informing you the Addressee, that the Lease Agreement dated ________ executed between my Client(s) above named and you the Addressee is a Composite Lease Agreement for Commercial Unit Bearing No._____ and _____ ___________, built up at plot No._____________ admeasuring ________ Sq. Ft. of covered area. That the said Lease Agreement dated ________ is not separable and cannot be split into two separate units and moreso my Client(s) above named is not interested in having more than one tenant for the above Commercial Unit bearing No._____ and _____. That my Client(s) above named also informed you the Addressee that in case you the Addressee wish to vacate, you the Addressee will have to vacate both the Commercial unit No._____ and _____ and accordingly serve a fresh notice to my Client(s) above named as per clause ___ of the Lease Agreement and that too only after expiry of Lock-in-Period of ____months from the date of execution of the Lease Agreement dated ________ meaning thereby that the Lock-in-Period of ___ months shall expire only on _____. That my Client(s) above named further requested you the Addressee to
(i) Serve to my Client(s) above named a fresh Notice for vacation of both Commercial Unit No. _____ and _____ because as per the Lease Agreement dated ________ and, that you the Addressee is not entitled to vacate the Leased Premises in part.
AND
(ii) In case you the Addressee wish to vacate the Leased Premises prior to _____, then you the Addressee is requested to pay to my Client(s) above named the Lease rent for the unexpired period upto _____. My Client(s) above named further informed you the Addressee that you the Addressee have also not paid to my Client(s) above named the Lease Rent for the month of ________ and ________ and therefore, you the Addressee is requested to pay the same alongwith interest calculated @___% per annum as stipulated in Lease Agreement”.
7. That since you the Addressee did not reply to letter dated _____ of my Client(s) above named, thereafter, my Client(s) above named wrote another letter dated _______ to you the Addressee informing you the Addressee that you the Addressee had neither replied to my Client(s) above named letter dated _____ nor remitted to my Client(s) above named the rent for the months of _____, _____ and _____. My Client(s) above named therefore requested you the Addressee to kindly pay the due rents alongwith interest calculated @__% per annum as stipulated in the Lease Agreement without any further delay”.
8. That my Client(s) above named did not receive any reply from you the Addressee to its letter dated _____ & letter dated _____, and my Client(s) above named thereafter once again sent an email dated _____ to you the Addressee informing you the Addressee that it is really surprising that in spite of the notice dated ________ of you the Addressee, you the Addressee have neither vacated the “Demised Premises” nor you the Addressee have cared to make payment of the rent after _________. My Client(s) above named further informed that you the Addressee enjoys a great reputation in the market and it was never expected that you the Addressee would neither care to reply to my Client(s) above named ’s letters dated _____ and _____ nor you the Addressee will make the payment of the outstanding rents to my Client(s) above named. My Client(s) above named also informed you the Addressee that due to nonpayment of rent by you the Addressee, my Client(s) above named have run into heavy financial crisis and my Client(s) above named have not been able to pay salary to his staff and my Client(s) above named have also not been able to even make payment of day to day commitments. My Client(s) above named also requested you the Addressee to at least on humanitarian grounds issue to my Client(s) above named the payments of the pending rents so that my Client(s) above named can in turn make payments of their commitments. My Client(s) above named also informed you the Addressee that you the Addressee is most welcome to vacate the premises anytime as per the terms and conditions of the lease agreement dated ________.
9. That inspite of the letter dated _____, letter dated _____, email dated _____ of my Client(s) above named, you the Addressee did not pay to my Client(s) above named rent for the month of _____, _____, _____, _____ & _____, and hence my Client(s) above named thereafter again sent to you the Addressee an email dated _____ informing you the Addressee that my Client(s) above named have neither received any reply from you the Addressee nor you the Addressee have released the outstanding Rent to my Client(s) above named. It was also informed that my Client(s) above named have been trying to contact the concerned officer on his phone but there was no reply and my Client(s) above named informed you the Addressee that it was never expected that you the Addressee shall keep silence on all the letters of my Client(s) above named, and would not care even to respond to the said letters.
10. That in spite of my Client(s) above named addressing the letter dated _____, letter dated _____, email dated _____ and email dated _____, you the Addressee neither made the payment of rent to my Client(s) above named for the month of _____, _____, _____, _____ & _____ nor you the Addressee cared to reply to my Client(s) above named letter dated _____, letter dated _____, email dated _____ and email dated _____, therefore, my Client(s) above named once again wrote another letter dated _____ addressed to you the Addressee Director, Mr. _________ at __________ to kindly release the outstanding Rent to my Client(s) above named . It was also stated by my Client(s) above named in the said Letter that due to non-payment of rent by you the Addressee my Client(s) above named have run into heavy financial crisis and my Client(s) above named have not been able to pay salary to their staff and my Client(s) above named have also not been able to even make payment of day to day commitments. My Client(s) above named also requested you the Addressee that at least on humanitarian grounds issue the payments of the pending rents so that my Client(s) above named can in turn make payments of their commitments. My Client(s) above named also requested you the Addressee that you the Addressee are most welcome to vacate the premises any time as per the terms and conditions of the lease agreement dated ________”.
11. That the position as on _____ was that you the Addressee have till that date not paid to my Client(s) above named Lease Rental for the month of _____, _____, _____, _____, _____, _____ & _____, the details of which are as under :-
That the total amounts of lease rental due from you the Addressee upto _____ is Rs._____/- alongwith interest amount of Rs._____/- calculated upto _____ @__% P.A. i.e. the same interest as mentioned in clause ____ of the Lease Agreement dated ________ and the Calculation of the interest are as under:-
12. That thereafter in view of the defaults committed by you the Addressee, my Client(s) above named vide letter dated _____ NOTIFIED you the Addressee that you the Addressee have defaulted to pay to my Client(s) above named the Lease Rental for the period _____ to _____ and therefore, in exercise the rights vested with my Client(s) above named as per clause ____ of the Lease Agreement dated ________, my Client(s) above named gave to you the Addressee 2 months notice to rectify the default in making the payment of Lease Rental of Rs._____/- from _____ to _____ of the “Demised Premises” alongwith interest amount of Rs._____/- calculated @__% P.A., in total amounting to Rs._____/- as per details given in the said letter dated _____, and my Client(s) above named further NOTIFIED you the Addressee that if you the Addressee fail to make the due payment to my Client(s) above named the Lease Agreement dated ________ shall automatically stands terminated on the expiry of ___ months from the date of receipt of the letter dated _____ by you the Addressee and my Client(s) above named shall be left with no option but to presume that a dispute or difference have arisen between you the Addressee and my Client(s) above named in relation to the said Lease Agreement dated ________, and therefore my Client(s) above named will be left with no other option but to enforce clause ____ of the Lease Agreement dated ________ for resolution of the dispute or difference.
That vide the said letter dated _____ my Client(s) above named also informed you the Addressee that as mentioned in Clause No.____ of the Lease Agreement dated ________, the Notice/ Letter dated _____ of my Client(s) above named is being sent to you the Addressee address i.e. at _____ & _____, _________________________.
13. That the current position is that as on _____, you the Addressee are liable to pay to my Client(s) above named Lease Rental for the month of _____, _____, _____, _____, _____, _____, _____3, _____ and _____, amounting to Rs._____/-, as per details given as under :-
That the total amount of lease rental alongwith interest calculated upto _____, due to be paid by you the Addressee to my Client(s) above named is Rs._________/- which comprises of Lease Rental of Rs._____/- and interest amount of Rs.__________/- calculated upto _____ @__% P.A. i.e. the same interest as mentioned in clause ______ of the Lease Agreement dated ________ and the Calculation of the interest are as under :-
(A) Total Lease Rental due for the month
of _____, _____,
_____, _____, ______
____, _____, _____,
_____ and _____. Rs._____/-
(B) Interest due as per calculations
given above Rs. _____ /-
(C) Total amount due (A+B) Rs._______ /-
14. That it is submitted that in view of the position stated hereinabove, my Client(s) above named have reasonable apprehension that you the Addressee is hell bent upon causing wrongful loss to my Client(s) above named and wrongful gain to you the Addressee, and you the Addressee is also not going to abide with the terms of the Lease Agreement dated ________ executed between you the Addressee and my Client(s) above named because you the Addressee have not paid to you the Addressee lease rental for the month of _____, December 2012, _____, _____, _____, _____, _____, _____ and _____ alongwith interest thereon the details of which been given hereinabove. That my Client(s) above named have further reasonable apprehension that you the Addressee have no intention to make future payment of Monthly Lease Rentals also to my Client(s) above named nor you the Addressee have any intention to vacate the “Demised Premises” known as “Commercial Unit bearing No. _____ & _____, Basement, built up at Plot No. _________________ admeasuring ________ sq.ft. of carpet area with a right to use the common areas & facilities”. My Client(s) above named have further apprehension that you the Addressee is hell bent upon grabbing the “Demised Premises” of my Client(s) above named .
15. That in view of the facts and circumstances narrated hereinabove, and specially in the background that serious disputes which have arisen between you the Addressee and my Client(s) above named, I through this Legal Notice invoke clause no.____ of the Lease Agreement dated ______ entered between you the Addressee and my Client(s) above named, and through this Legal Notice I propose the name of either Hon’ble Mr. Justice _______ (Former Judge of Hon’ble _______ High Court), R/o __________ or alternatively Mr. ________, Retired Addl Distt. & Session Judge, ____, R/o _____________, to be nominated as a Sole Arbitrator, for adjudication / resolution of disputes or differences between you the Addressee. That I further notified to you the Addressee that in case no reply is received from you the Addressee in response to this Legal Notice within a period of ___ days then in that event, it shall be presumed that you the Addressee have no objection to either Mr. Hon’ble Justice ______ (Former Judge of Hon’ble _______ High Court) or alternatively Mr. ______, Retired Addl Distt. & Session Judge, ________ being appointed as Sole Arbitrator in terms of clause No. _________ of the Lease Agreement dated ________ for adjudication / resolution of disputes or differences between my Client(s) above named, and you the Addressee, in accordance with law. That I also further NOTIFY to you the Addressee that my Client(s) above named reserves its rights to approach the Hon’ble High Court of _____ for urgent interim orders to protect its interest.
Take notice accordingly.
( __________ )
Advocate
PS. A copy of this Legal Notice is also kept in my office for inspection during office hrs. with prior appoints.
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