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Mehta v. Skyline Realty · Lease Deed (2024).pdf

Lease Deed · Page 7 of 18

14. Lock-in and Termination

14.1 The Lessee shall not terminate this Lease during the Lock-in Period of thirty-six (36) months from the Commencement Date.

14.2 Should the Lessee vacate prior to expiry of the Lock-in Period, the Lessee shall pay rent for the entire unexpired Lock-in Period, and the Security Deposit shall stand forfeited in full.1

14.3 The Lessor may determine this Lease upon breach of any express condition, after giving the Lessee thirty (30) days' written notice.

Assistant

Grounded in 3 sources
Is clause 14.2 enforceable against my client?

Clause 14.2 — elevated risk

Rent for the unexpired lock-in and full forfeiture of the deposit may be treated as a penalty. Courts typically award only reasonable compensation not exceeding the stipulated sum.

Indian Contract Act, s. 74 TP Act, s. 111(g) Clause 14.2
Draft a reply to the Lessor's notice
Compare with standard lock-in clauses

Reasoning grounded in Indian statutes and precedent

Bharatiya Nyaya SanhitaBNSSBharatiya Sakshya AdhiniyamIndian Contract ActTransfer of Property ActCode of Civil ProcedureConsumer Protection ActConstitution of India

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