COMMERCIAL RENTAL AGREEMENT

THIS COMMERCIAL RENTAL AGREEMENT (hereinafter referred to as "Agreement") is made and entered into on this __________ (hereinafter referred to as the "Effective Date")

BY AND BETWEEN:

__________, son/daughter/wife of __________, residing at __________, (hereinafter referred to as the "Lessor" or "Landlord", which expression shall unless repugnant to the context or meaning thereof be deemed to mean and include his/her heirs, executors, administrators, legal representatives and assigns) of the FIRST PART;

AND

__________, a company/partnership/proprietorship firm, incorporated/registered under the provisions of the Companies Act, 2013 / Indian Partnership Act, 1932 / proprietorship firm, having its registered office/principal place of business at __________, acting through its authorized signatory Mr./Ms. __________, son/daughter/wife of __________, (hereinafter referred to as the "Lessee" or "Tenant", which expression shall unless repugnant to the context or meaning thereof be deemed to mean and include its successors-in-interest and permitted assigns) of the SECOND PART.

WHEREAS:

1. The Lessor is the absolute owner and is in peaceful possession of the commercial property bearing __________ no. __________, situated at __________, having an approximate super built-up area of __________ square feet and a carpet area of __________ square feet (hereinafter referred to as the "Demised Premises" or "Scheduled Property").
2. The Lessee is desirous of taking on lease the Demised Premises for commercial purposes, and the Lessor has agreed to lease out the same to the Lessee upon the terms and conditions hereinafter appearing.
3. Both parties have agreed to enter into this Agreement to record the terms and conditions of the lease.

NOW, THIS AGREEMENT WITNESSETH AS FOLLOWS:

1. COMMENCEMENT AND TERM OF LEASE

• This Agreement shall commence from __________ (the "Commencement Date") and shall remain in force for a period of __________ (__________) years, ending on __________ (the "Term").
• The lease period shall be __________ years with an option to renew for a further period of __________ years at a mutually agreed revised rent, provided the Lessee gives written notice of its intention to renew at least __________ days prior to the expiration of the initial Term.
• There shall be a lock-in period of __________ (__________) months from the Commencement Date, during which neither party shall be entitled to terminate this Agreement, save and except for material breach of the terms hereof.

2. RENT

• The Lessee shall pay to the Lessor a monthly rent of INR __________/- (Rupees __________ only) for the Demised Premises, exclusive of Goods and Services Tax (GST) and other statutory levies (if applicable), payable in advance on or before the __________ day of each calendar month.
• The rent shall be increased by __________% after every __________ months during the subsistence of this Agreement.
• In the event of delay in payment of monthly rent, the Lessee shall be liable to pay interest at the rate of __________% per annum on the delayed amount for the period of delay.

3. SECURITY DEPOSIT

• The Lessee shall deposit with the Lessor a sum of INR __________/- (Rupees __________ only) as a refundable interest-free security deposit (the "Security Deposit").
• The Security Deposit shall be refunded by the Lessor to the Lessee within __________ days from the date of vacation of the Demised Premises and after deducting any dues, damages, or costs incurred by the Lessor due to the Lessee's default or damage to the property (normal wear and tear excepted).

4. UTILITIES AND OTHER CHARGES

• The Lessee shall be responsible for payment of all electricity charges, water charges, internet/telecom charges, and any other utility charges consumed at the Demised Premises during the Term, based on actual consumption as per bills.
• Property taxes and other statutory charges related to the ownership of the Demised Premises shall be borne by the Lessor.
• Maintenance charges for common areas and facilities (if any) shall be borne by the __________ and shall be approximately INR __________/- (Rupees __________ only) per month, payable along with the monthly rent.

5. USE OF PREMISES

• The Demised Premises shall be used exclusively for __________ purposes and for no other purpose whatsoever without the prior written consent of the Lessor.
• The Lessee shall not carry on any illegal, unlawful, immoral, or hazardous activities in the Demised Premises.

6. REPAIRS AND ALTERATIONS

• Structural repairs to the Demised Premises, including major repairs to the roof, external walls, and common plumbing lines, shall be the responsibility of the Lessor.
• Minor repairs, routine maintenance, and upkeep of the interiors of the Demised Premises, including electrical fittings, internal plumbing, painting, and cleaning, shall be the responsibility of the Lessee.
• The Lessee shall not make any structural alterations or additions to the Demised Premises without the prior written consent of the Lessor. Any non-structural fixtures or fittings installed by the Lessee may be removed at the time of vacating, provided the premises are restored to their original condition (normal wear and tear excepted).

7. LESSOR'S COVENANTS

The Lessor hereby covenants with the Lessee as follows:

• To ensure quiet and peaceful possession of the Demised Premises to the Lessee during the Term, without any interruption from the Lessor or any person claiming through or under him/her.
• To pay all taxes, cesses, and outgoings whatsoever, now or hereafter to be imposed upon the Demised Premises by the Government or any local authority, which are in the nature of ownership charges.
• To keep the main structure of the Demised Premises in good and tenantable repair.

8. LESSEE'S COVENANTS

The Lessee hereby covenants with the Lessor as follows:

• To pay the rent and other charges on the due dates without any deduction.
• To maintain the Demised Premises in a clean, hygienic, and tenantable condition (save for normal wear and tear) and not to cause any damage to the property.
• Not to sublet, assign, or part with possession of the Demised Premises or any part thereof without the prior written consent of the Lessor.
• To permit the Lessor or his/her authorised agents, upon reasonable prior notice, to enter the Demised Premises for inspection or to carry out necessary repairs.
• To hand over vacant and peaceful possession of the Demised Premises to the Lessor upon termination or expiry of this Agreement, in the same condition as received (normal wear and tear excepted).

9. TERMINATION

• Either party may terminate this Agreement by giving __________ (__________) months' prior written notice to the other party, provided that such notice shall not be given during the lock-in period mentioned in Clause 1(c).
• Notwithstanding anything contained herein, the Lessor shall have the right to terminate this Agreement forthwith without any notice in the event of:
  1. Non-payment of rent for a period of __________ months or more.
  2. Breach of any material term or condition of this Agreement by the Lessee, which breach is not remedied within __________ days of receiving written notice from the Lessor.
  3. Use of the Demised Premises for any illegal or unlawful purpose.
• Upon termination or expiry of this Agreement, the Lessee shall remove all its belongings and hand over the vacant possession of the Demised Premises to the Lessor in good condition (normal wear and tear excepted).

10. INDEMNITY

The Lessee shall indemnify and keep the Lessor indemnified against all losses, damages, claims, costs, and expenses whatsoever that the Lessor may suffer or incur by reason of any breach, non-observance or non-performance of any of the terms, conditions or covenants contained in this Agreement by the Lessee, or by reason of any act, omission, negligence or default of the Lessee or its employees, agents, or visitors.

11. ARBITRATION & GOVERNING LAW

• Any dispute or difference arising between the parties concerning this Agreement or the interpretation thereof shall be referred to arbitration in accordance with the provisions of the Arbitration and Conciliation Act, 1996, or any statutory modification thereof. The arbitration shall be conducted by a sole arbitrator mutually appointed by the parties. If the parties fail to agree on a sole arbitrator within __________ days, then each party shall appoint one arbitrator, and the two appointed arbitrators shall appoint a third presiding arbitrator. The venue of arbitration shall be __________. The language of arbitration shall be English.
• This Agreement shall be governed by and construed in accordance with the laws of India. The Courts in __________ shall have exclusive jurisdiction to entertain any suit or proceeding arising out of this Agreement.

12. REGISTRATION

This Agreement shall be registered with the Sub-Registrar of Assurances at __________ as per the provisions of the Registration Act, 1908. The stamp duty and registration charges shall be borne by the __________ and __________ in equal/specified proportions.

13. NOTICES

Any notice or communication required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been duly given if delivered personally, sent by registered post with acknowledgement due, or by reputable courier service to the addresses of the parties mentioned hereinabove.

14. ENTIRE AGREEMENT

This Agreement constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes all prior discussions, negotiations, and agreements, whether oral or written, between the parties.

15. SEVERABILITY

If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall continue to be valid and enforceable to the fullest extent permitted by law.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first above written.

THE SCHEDULE OF THE PROPERTY

All that commercial property being __________ no. __________, situated on the __________ floor, admeasuring a super built-up area of approximately __________ sq. ft. and carpet area of approximately __________ sq. ft., located at __________ and more particularly described below:

• Type of Property: __________
• Exact Address: __________
• Area (Carpet): __________ sq. ft.
• Area (Super Built-up): __________ sq. ft.
• Boundaries:
• East: __________
• West: __________
• North: __________
• South: __________
• Any specific fixtures/fittings included: __________

(The property is more clearly delineated in the plan attached hereto as Annexure-A, if any, and shown with __________ boundary.)