Commercial tenant not paying rent for 3 months

745 votes

‎Hello good afternoon ‎ ‎This is a serious commercial tenancy default. Let me break it legally and practically. ‎ First Legal Position ‎Even if no written agreement is signed: ‎ If they are in possession and conducting business, ‎ And you allowed occupation, ‎Then tenancy by conduct (month-to-month tenancy) is presumed under property law principles. ‎So they cannot escape liability saying “agreement not signed.” ‎They are liable to: ‎Pay rent ‎Pay mesne profits (use & occupation charges) ‎Vacate if default continues ‎ Your Course of Action ‎1️⃣ Issue Legal Notice Immediately ‎Send a strong legal notice demanding: ‎Arrears of rent (mention exact amount) ‎Execution of tenancy agreement within 7 days ‎Payment within 15 days ‎Failing which → termination of tenancy ‎Notice should also state: ‎Possession is unauthorized if rent not paid ‎You will initiate eviction and recovery proceedings ‎Serve to: ‎Registered office of company ‎Local branch ‎Email (if available) ‎For big supermarket chains, head office legal team usually responds once notice is served. ‎2️⃣ Terminate Tenancy (If No Payment) ‎If no response after notice: ‎Serve termination notice under: ‎15 days (commercial monthly tenancy) ‎After termination: ‎File suit for eviction ‎Claim arrears ‎Claim mesne profits (higher than rent) ‎3️⃣ File Suit For: ‎Eviction ‎Recovery of arrears ‎Mesne profits (damages for illegal occupation) ‎Interest ‎Since it’s commercial property, court will treat it strictly. ‎4️⃣ Very Important ‎DO NOT: ‎Lock the premises ‎Disconnect electricity illegally ‎Remove goods ‎Obstruct business physically ‎That can go against you. ‎5️⃣ If Inventory Was Taken Over ‎If they officially took over previous tenant’s inventory: ‎That shows: ‎Acknowledgement of possession ‎Commercial continuity ‎That strengthens your case that they are lawful occupants and liable to pay rent. ‎ Strategic Advice (Because It’s a Big Chain) ‎Big supermarket chains don’t want: ‎Litigation ‎Reputation damage ‎Commercial eviction ‎Once legal notice is issued to Head Office, 80% chance they settle. ‎ Important Questions ‎Which State is the property in? ‎Was any email communication about rent agreed? ‎ ‎ ‎Thank you

Advocate Nataraja KS LawRato