DRAFT 3.7.

24
Date: __ July 2024
BY COURIER/ RPAD
Dear Sir,
Subject: Notice of Recovery of Security Deposit
1. We are concerned for our clients Reliance Ritu Kumar Private Limited (“RRKPL”). Our
clients have placed in our hands your E-mail dated 27 December 2023 (“said email”) with
instructions to respond to the said e-mail. On instructions of our clients we have to
address you as under.
2. Our clients state that, our clients entered into a Lease Deed (“said Lease Deed”) with you,
Smt. Neena Satia and Smt. Reena Satia (“Lessors”) on 2 November 2022 for leasing the
premises situated at ground floor, bearing portion of Shop No. 3, bearing GHMC No. 3-6-
517/3, admeasuring about 935 square feet of Carpet area and common areas of 301.67 Sq.
Ft. Total super built up area is 1236.66 [Link]. together with undivided share of land 36.00
Sq. Yards (out of 54 Sq. Yds.) out of total land area of 1460 Sq. Yards, in premise
bearing Municipal No.3-6-517, situated at Sai Datta Arcade, Himayat Nagar, Main Road,
Hyderabad, Telangana State and bounded by PTIN No. 1090316751 & 1165500768
(“leased premises”).

The said Lease Deed was entered for a period of 9 years commencing from 19 November
2022, with the date of handover being 5 October 2022.

3. Our clients say that some of the relevant clauses of the said Lease Deed for the
present purpose are as follows:-
“4.3. Termination by the Lessee
4.3.1. Notwithstanding anything to the contrary contained in this Lease Deed
or any other agreement between the Parties (whether written or otherwise),
after execution of this Lease Deed, including during the Lock In Period, the
Lessee shall have the right to terminate this Lease Deed on account of:
(i) any breach of the terms and conditions of this Lease Deed by the Lessor
(including any of the Lessor’s representatives, warranties or covenants),
which breach is not reeded by the Lessor within 30 (thirty) days of receipt of a
notice regarding such breach, unless the Parties mutually agree upon such
other cure period;
(ii) the occurrence of Force Majeure Event;
(iii) the destruction of the Premises to the extent that the Lessee’s occupation
and/or use thereof, and/or operations carried out therefrom are affected; or
(iv) any other right to terminate provided to Lessee in this Lease Deed.

6. SECURITY DEPOSIT
6.1. The Lessee has agreed to pay to the Lessor an interest free refundable
security deposit amounting to Rs. 28, 00, 000/- (Indian Rupees Twenty Eight
Lakhs only) (the “Security Deposit”).
 6.3. On the expiry or earlier termination of this Lease Deed, the Lessor shall, ,
contemporaneously with the Lessee delivering possession of the Premisis to
the Lessor, return and refund the Security Deposit to the Lessee forthwith in
one instalment and without demur. Upon the termination or earlier expiry of
the Lease Deed, each of the Lessor will jointly and severally be liable to
refund the entire amount of the Security Deposit to the Lessee, in a manner as
set out in this Lease Deed.
6.5. If on the expiry or earlier termination of this Lease Deed the Lessee
having already withdrawn all their belongings from the premises and being
ready to handover the Premises to the Lessor as per the terms agreed in this
Lease Deed, the Lessor fails to simultaneously return the Security Deposit to
the Lessee, without prejudice to the rights of the Lessee under this Lease Deed
and in law, (i) the Lessor shall, in addition to returning the Security Deposit,
pay interest calculated at the rate of eighteen percent (18%) per annum on the
portion of the Security Deposit remaining unreturned, from the date of expiry
of the Term or the earlier termination of this Lease Deed., to the date of
actual return, as applicable; OR (ii)the Lessee shall enjoy the right to use the
Premises without the payment of any Rent, or any other charges from the date
of expiry of the Term or the earlier termination of this Lease Deed to the date
of actual return of the Security Deposit along with interest as aforesaid. The
Lessee retaining possession of the premises in accordance with this clause
shall not constitute a breach of this Lease Deed. Notwithstanding the
foregoing, it is expressly recorded and mutually agreed that the Lessee
retaining possession of the premises shall not be construed or deemed to
extend the duration of the Term, or in any way affect or prejudice the rights of
the Lessee, including but not limited to recovery of the Security Deposit, as
the case may be. ”

4. Our clients state that as per clause 6 of the said Lease Deed, our clients had deposited an
amount of Rs. 28, 00, 000/- (Indian Rupees Twenty Eight Lakhs only).
5. Our clients state that, by a notice dated 1 December 2023 (“said termination notice”), our
clients had informed you that due to losses incurred by our clients due to the low sales at
the leased premises, our clients terminated the said Lease Deed.

Our clients also informed you via the said termination notice that they shall hand over the
possession of the leased premises to you by 29 February 2024 on serving a notice period
of 3 months, as per the requirements of the said Lease Deed.

It was further informed to you that our clients had paid you Rs. 28, 00, 000/- (Indian
Rupees Twenty Eight Lakhs only) at the time of signing the said Lease Deed, as Interest
Free Refundable Security Deposit and that you are liable to refund the same upon the
handing over of the possession of the leased premises. Hence, our clients asked you to
make arrangements for the refund of the said amount and do the Full and Final settlement.
6. Our clients say that, by an email dated 27 December 2023, you acknowledged our
clients’ Termination Notice dated 1 December 2023. You also informed our clients
that you will refund the Security Deposit of Rs. 28, 00, 000/- (Indian Rupees Twenty
Eight Lakhs only) post successful and prompt handover, satisfactory inspection of the
property and after deducting any full and final receivables.
7. Our clients say that, despite repeated reminders to refund the Security Deposit
amount, you have, as on date, failed to refund the Security Deposit amount.
8. In the circumstances, as instructed by our clients we hereby call upon you to return
the Security Deposit of Rs. 28, 00, 000/- (Indian Rupees Twenty Eight Lakhs only),
along with an interest of 18% per annum as per the said Lease Deed. In the event any
legal actions is initiated by you, the same shall be defended by our clients as to your
cost and consequences.