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Q.

Tenant has not honoured clause of incremental increase. How to get compensatory loss of rent?

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44 days

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In India, if a tenant has not honored the clause regarding incremental increase in rent as stipulated in the lease agreement, you have several avenues to seek compensatory loss of rent. Here are the steps you can take:

  1. Review the Lease Agreement: Begin by thoroughly reviewing the lease agreement to understand the specific terms related to the incremental increase in rent. Ensure that the clause is clearly defined and that the tenant was aware of this obligation.

  2. Communicate with the Tenant: Initiate a formal communication with the tenant, preferably in writing, to address the issue. Outline your concerns regarding their failure to comply with the agreed-upon terms and request payment of the increased rent.

  3. Issue a Legal Notice: If the tenant does not respond or refuses to comply, you may consider sending a legal notice. This notice should detail the breach of contract and demand payment for the outstanding amount due to non-compliance with the rental increment clause.

  4. Mediation or Negotiation: Before proceeding with legal action, it may be beneficial to explore mediation or negotiation options. Sometimes, a discussion facilitated by a neutral third party can lead to a resolution without resorting to litigation.

  5. File a Suit for Recovery: If all else fails, you can file a suit for recovery of rent in a civil court. The suit should include evidence of the lease agreement, records of payments made by the tenant, and any correspondence regarding their breach of contract.

  6. Claim Damages: In your lawsuit, you may also claim damages for any financial losses incurred due to the tenant's non-compliance with the rental increment clause. Be prepared to provide documentation supporting your claim for compensatory losses.

  7. Seek Legal Advice: It is advisable to consult with a lawyer who specializes in property law to guide you through this process and ensure that all legal procedures are followed correctly.

By following these steps, you can effectively pursue compensatory loss of rent due to your tenant's failure to honor their contractual obligations.

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