Payment of Rent under Commercial Leases during COVID-19

Author : Rishi Batta | Published On : 14 Oct 2021

Organisations in India often lease out workplaces to run their business and provide workspace to their employees. However, the sudden outbreak of COVID-19 led to a lockdown imposed by Government of India from March 24, 2020,[1] due to which organisations have not been able to utilise their leased workspaces for approximately 2 (two) months. As such, many organisations are exploring the possibility of exemptions from their rental obligations under their lease deeds.

In India, unlike the Coronavirus Act of United Kingdom,[2] there has been no government order or notification granting exemption to lessees from payment of rent in respect of commercial properties. In light of the above background, this article discusses the approach which may be considered by lessees in case of commercial rent payments as per their respective contracts and under the Transfer of Property Act, 1882 (“TPA”).

Tatva Legal, Hyderabad has a specialized team of lawyers who, amongst other services, advise on real estate transactions covering various aspects of the transaction such as drafting contracts for commercial leasing, real estate advisory services and conducting title due diligence.