RE: TERMINATION OF LEASE AGREEMENT
We refer to your letter dated 19.08.2007 referred to us on the above subject.
From perusal of your letter and the documents provided, it appears that, Bank 1 (“the Bank”) have sent a termination notice dated August 09, 2007 (“the Termination Notice”) to COMPANY 1 (“the Lessor”) to terminate the Lease Agreement dated March 30, 2006 (“the Lease Agreement”) in relation to the ……………..(“the Demised Premises”) by invoking Section 13(b) of the Lease Agreement due to the fact that the Demised Premises has become uninhabitable because of the ongoing demolition of ………….. and above of ……………….. The Termination Notice has informed the Lessor that the Bank had already vacated the Demised Premises and asked the Lessor to refund the unadjusted advance amount of Tk. 22,92,360 (“Advance Rent”) with in 15 days of the receipt of the notice and to take back the possession of the Demised Premises.
The Bank have also sent a reminder letter dated August 16, 2007 (“Reminder Letter”) to the Lessor.
However, the Lessor has till date neither refunded the Advance Rent nor has it taken back the possession of the Demised Premises.
In these circumstances, you have requested us to give our legal opinion regarding this matter.
As 15 (fifteen) days have already passed and the Lessor has not refunded the Advance Rent or taken back the possession of the Demised Premises, the Bank has the option of sending another final notice or instruct us to send a legal notice on behalf of the Bank.
In the final notice/legal notice, in addition to breach of Clause 13 (b) of the Lease Agreement, breaches of Sections 5(b), 5(c), 5(g), 6(d), 6(f), 10, 11(c) and 13(a) may also be claimed as reasons for terminating the Lease Agreement. Moreover, the Bank may also rely upon Section 56 of the Contract Act, 1872 and Section 111(h) the Transfer of Property Act 1882 to terminate the Lease Agreement.
If the Lessor does not refund the Advance Rent within the period specified in the final Notice/legal notice then the Bank may have to pursue the matter in the court of law for recovery of the Advance Rent.
In order to complete the formality of handing over the possession of the Demised Premises, the Bank should give the Lessor a last letter informing them that the Demised Premises has already been vacated and request the Lessor to take back the possession of the same.
If you have any farther query, please do not hesitate to revert back to us.
All documents/papers referred to us are returned herewith.
For: “The Lawyers & Jurists”