Status of rent deals dispute due to Corona / Kovid 19

Sunday, July 5, 2020 ·

From the last three months, RealEstateDealStreet.com has been having lots of queries from the Flat owners, and Paying Guest House owners are on one side and Paying Guests or tenants on another side. All of them are having only one issue that is nationwide lockdown due to the Corona pandemic. The tenants run away to their home towns between 15th March to 21st of March and most of them have not returned till now. Now the issue is that as per tenants they have not stayed at their tenanted premises or PG and this is a very unprecedented event in legal terminology it is called “Force Majeure” so they should not be charged the rent for this lockdown period. The counterparties owners say that they were using the premises because their stuff is still there and there was no “Force Majeure” clause in the agreement signed by both parties. Our politicians like Delhi CM Arvind Kejariwal etc. created more confusion by giving some statements which manipulated by tenants. Here we will discuss, What can be the solution and probable outcome. First What is a force majeure clause?Force majeure clauses are contractual clauses which alter parties' obligations and/or liabilities under a contract when an extraordinary event or circumstance beyond their control prevents one or all of them from fulfilling those obligations.We agree that this lockdown was an unprecedented event but it is doesn’t comes in Force Majeure category as per law because any court in India has declared COVID19 as Force Majeure and in most of the agreements this is not used in India.What is the SolutionThe tenants should either pay his or her dues or request and negotiate with their owners about this loss, and the same time owners should also see tenant's losses and wave off some part of the rent. By doing this they will not loos the client because it will be very difficult to get a new tenant in such time that too at the same rent. (This is our solution but it is not binding on anyone. By the way RealEstateDealStreet.com has agreed to pay rent to all the paid owners of three months in case of default by its tenants.

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