INDIA Law and Practice Contributed by: Vivek Chandy, Archana Tewary, Kumarmanglam Vijay and Brijita Prakash, JSA
6.21 Forced Eviction Where a tenant is in breach of the lease, the landlord would have to follow the procedure set out in the lease deed to evict the tenant, includ - ing giving the tenant an opportunity to cure the default. Thereafter, the landlord can issue a notice of termination and initiate legal action to recover the premises (and mesne profits) where the tenant remains in occupation. The process of tenant eviction may take three to seven years. In rent-controlled properties, evicting a tenant could take much longer. 6.22 Termination by a Third Party A third party cannot terminate a lease unless contractually agreed. If a condemnation event by a government body occurs, the lease will stand terminated as the property will vest with the gov - ernmental authority concerned. Compensation for such acquisition is typically paid to the owner of the property unless the sharing of compensa - tion is contractually agreed between the owner and lessee. 6.23 Remedies/Damages for Breach Remedies in the event of a tenant breach and lease termination are typically limited to the land - lord claiming remaining rent and mesne profits. Such claims are also subject to limitation laws; claims may be made within three years of the breach pursuant to which the claim has arisen. In India, only direct damages can be claimed unless a party has undertaken to indemnify the counterparty for any specific kinds of losses. Typically, landlords collect an IFRSD to ensure that landlords have adequate remedies in case of the tenant’s breach. Landlords may also pur - sue arbitration or court proceedings depending on the terms of the lease deed.
restrictions. The sublessee must abide by the lease agreement executed. In commercial leases, landlords generally permit assignment/subleasing to affiliates/group com - panies but not to unrelated third parties. 6.19 Right to Terminate a Lease Events of default and termination rights are contractually agreed between parties, including granting a cure period following such an event of default. Such events would be standard events, such as breach of lease terms, failure to pay rent for over two rent cycles, force majeure events, failure of landlord to rectify structural damage/ defects, any claims/governmental action result - ing the tenant not being able to use or access the property, breach of sanctions laws/anti-brib - ery laws, etc. 6.20 Registration Requirements Immovable property leases from year to year or for more than 12 months or reserving a yearly rent require mandatory registration at the SRA. The Registration Act requires the deed to be reg - istered within four months of its execution. An additional four months’ discretionary extension may be granted by the SRA, by levying a pen - alty, if such non-registration was due to unavoid - able circumstances. After registration, the lease is recorded in the local Registry of Deeds and becomes a public document. Stamp duty is payable on the lease deed before it is registered, by the tenant, unless it is other - wise agreed to be shared between the parties. Although licences are not normally required to be registered, certain states (such as Maha - rashtra; see the Maharashtra Rent Control Act) mandate it.
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