Rent agreement

This query is : Resolved

Harpreet (Querist)
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30 July 2011 My client gave shop on rent, in the last month. After a month lessee does not pay any rent. Please suggest for him... What he do...

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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30 July 2011 please refer the rental agreement clauses, may be security deposit will be forfeited against the rent payable

Harpreet

Harpreet (Querist)
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02 August 2011 Sir there is security deposit of 3 months but no term and condition to time limit. my client is worried that if he does not pay rent in initial stage, then what about future. he simply want to take back of possession due to irregularity of rent out. is it possible in any way? give any hope...

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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21 July 2025 Got it. Your client rented out a shop, the tenant hasn’t paid rent after one month, and the agreement only mentions a security deposit of 3 months without specifying a time limit or consequences for late payment.

Your client wants to know if he can regain possession of the shop because of the tenant’s irregular rent payments.

Here’s what I suggest:
Check the Rent Agreement Carefully:

Look for any clauses related to default in payment, termination, or repossession.

Even if no specific time limit for rent payment is mentioned, the law usually implies timely payment is required.

Security Deposit:

The security deposit can typically be used to cover unpaid rent. Your client can deduct the overdue rent from the deposit.

Notice for Payment or Possession:

Your client should send a formal written notice (preferably via registered post) to the tenant demanding payment within a reasonable time (e.g., 7-15 days).

The notice should also state that failure to pay rent will lead to termination of the lease and repossession of the property.

Legal Action for Recovery and Possession:

If the tenant does not pay even after notice, your client can approach a civil court or rent control authority (depending on local laws) for:

Recovery of unpaid rent.

Termination of the lease agreement.

Eviction of the tenant.

Possibility of Eviction Without Court (Depends on Local Laws):

In some jurisdictions, the landlord can terminate the lease and repossess the premises if rent is not paid for a certain period, but it usually requires notice.

Your client should not forcibly evict the tenant without legal orders to avoid penalties.

Future Agreements:

Advise your client to include clear clauses in future rental agreements regarding:

Rent payment deadlines.

Consequences of late or missed payments.

Time limits for security deposit forfeiture.

Grounds for termination and eviction.

Summary:
Use the security deposit for the unpaid rent.

Issue a formal demand notice for rent and possession.

If ignored, initiate legal eviction and recovery process.

Avoid self-help eviction to prevent legal issues.

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