Kagaznama

Lock-In Breach Compensation Notice

At a glance

Price: Free
Stamp duty: No stamp duty in either Punjab or the Union Territory of Chandigarh — a notice of this kind creates or transfers no interest in the Premises and asserts a claim rather than an instrument, so it is not a chargeable document under the Stamp Act; plain paper or an advocate's letterhead is enough, and no e-stamp exists for it.
Registration: Not registrable in either jurisdiction — nothing is created, declared, assigned, limited or extinguished by this notice alone, so it falls outside Section 17 of the Registration Act, 1908 and no presentation window runs against it.
Witnesses: None required by law in either jurisdiction for a notice of this kind — a signature by or on behalf of the Landlord is enough.

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Also called

Lock-in Violation Notice
Notice for Breach of Lock-in Period
Notice Demanding Lock-in Compensation
Early Exit Compensation Notice
Notice for Premature Vacation During Lock-in
Lock-in Default Notice
Lock-in Clause Breach Notice
Lock-in Sharat Todan Da Notice

When you need it

A landlord's written notice to a commercial tenant in Punjab or Chandigarh who has vacated, or given notice of intention to vacate, before the lock-in period in the lease has run its course — asserting the breach and demanding the compensation the lease itself provides for it: forfeiture of the security deposit, rent for the balance of the lock-in period, or a specified liquidated sum, whichever the lease's own lock-in clause names. Send it once the tenant has actually left, or has told the landlord in writing that it intends to, while the lock-in period the lease fixes has not yet expired.

It does not seek possession — that is usually academic once the tenant is going or gone — and it does not itself establish that the amount claimed will be recovered in full: Section 74 of the Indian Contract Act, 1872 confines a claim of this kind to reasonable compensation, whatever figure the lease names, and a court can and does read the figure down where it bears no relationship to any real loss. Not for: a tenant leaving after the lock-in period has already ended, where no breach of it arises — use the lease's own termination or notice clause instead; a landlord's breach of a lock-in that binds the landlord; a tenant still in occupation and simply in arrears; or recovering possession from a tenant who will not leave.

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What follows is written for Punjab and Chandigarh. It states the position there rather than describing how it varies, so the amounts below are the ones that apply — worth confirming at the sub-registrar’s office, because rates change. If the property is anywhere else in India, none of this is yours.

Stamp duty

No stamp duty in either Punjab or the Union Territory of Chandigarh — a notice of this kind creates or transfers no interest in the Premises and asserts a claim rather than an instrument, so it is not a chargeable document under the Stamp Act; plain paper or an advocate's letterhead is enough, and no e-stamp exists for it. Duty falls instead on whatever document eventually settles the claim. A simple receipt for payment needs no duty. A separate settlement or surrender deed, or a deed recording that the Security Deposit is applied in full discharge of the claim, is chargeable in its own right, at whatever rate its own description carries in the Punjab or the Chandigarh stamp schedule — check it when that document is drawn, not against this notice.

Registration

Not registrable in either jurisdiction — nothing is created, declared, assigned, limited or extinguished by this notice alone, so it falls outside Section 17 of the Registration Act, 1908 and no presentation window runs against it. Where the Lease itself was compulsorily registrable — a lease from year to year, for a term exceeding one year, or reserving a yearly rent, under Section 107 of the Transfer of Property Act, 1882 and Section 17(1)(d) of the Registration Act, 1908 — and was registered, the register continues to show it as subsisting until a registered instrument closes it. This notice does not clear that record at the Sub-Registrar of the tehsil in Punjab or the Sub-Registrar, Union Territory of Chandigarh; only a deed of surrender, cancellation or settlement, itself registered, does that.

Notarisation

Not required in either jurisdiction — this notice's force comes from being in writing, signed on behalf of the Landlord, and provably delivered, not from being sworn or attested. What actually matters is proof of service: keep the postal receipt and the acknowledgement card, the courier's proof of delivery, or a signed acknowledgement of personal tender. A notarised notice with nothing to show it reached the Tenant is worth less than a plain one with a signed receipt attached.

Witnesses

None required by law in either jurisdiction for a notice of this kind — a signature by or on behalf of the Landlord is enough. Where the Landlord is more than one person, every co-owner who is a Lessor under the Lease should sign, or the signing co-owner should say expressly that they sign for the others and name them; a notice given by one Lessor about a Lease granted by several invites the answer that the others were content to let the Tenant go on the terms it took. Where personal tender is chosen as the method of service and the Tenant declines to acknowledge receipt, a witness who is not a party to the Lease — noting the date, time and what was tendered — turns a disputed delivery into a provable one.

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NOTICE OF BREACH OF LOCK-IN PERIOD AND DEMAND FOR COMPENSATION

Date: 1 April 2026

TO:
Northline Analytics Private Limited, an individual
Plot No. 8, Phase 8-B, Industrial Area, S.A.S. Nagar (Mohali) 160055
And also at: X
Email: X

FROM:
Sethi Estates Private Limited, an individual
House No. 1204, Sector 33-C, Chandigarh 160020

SUBJECT: Breach of the lock-in period under the Lease of the Premises described below, and demand for the compensation the Lease provides for it.

Dear Sir / Madam,

1. THE LEASE AND THE PREMISES

1.1 Sethi Estates Private Limited ("the Landlord") is the lessor, and Northline Analytics Private Limited ("the Tenant") is the lessee, under a registered Lease Deed dated 2 April 2026, registered with the Sub-Registrar, S.A.S. Nagar (Mohali), as Document No. 4521/2023 ("the Lease"), of the premises described as: Unit 305, Third Floor, Tower B, Bestech Business Tower, Plot No. C-2, Sector 66, S.A.S. Nagar (Mohali), situated in the State of Punjab ("the Premises").

1.2 In this notice, "the Lease" means that instrument together with every variation, renewal or supplement to it.

2. THE LOCK-IN PERIOD

2.1 Clause Clause 14.2 of the Lease binds the Tenant to a lock-in period of 36 months, running from 3 April 2026 and expiring on 5 April 2026 ("the Lock-in Period"), during which the Tenant may not terminate the Lease or vacate the Premises for convenience.

2.2 The Landlord confirms that it has not defaulted under the Lease in any manner that would excuse the Tenant from the obligations of the Lock-in Period.

3. THE BREACH

3.1 The Tenant has vacated the Premises and delivered possession to the Landlord on 4 April 2026. That date falls before 5 April 2026, the date on which the Lock-in Period expires.

3.2 The Tenant has accordingly breached Clause Clause 14.2 of the Lease by vacating, or by giving notice of intention to vacate, the Premises before the expiry of the Lock-in Period.

4. COMPENSATION CLAIMED

4.1 Clause Clause 14.2 of the Lease provides that where a Tenant vacates or terminates during the Lock-in Period otherwise than because of the Landlord's default, the Tenant shall pay the Landlord rent for the unexpired part of the lock-in period. The rent payable under the Lease at the date of the breach is ₹25,000 (Rupees Twenty Five Thousand only) per month.

4.3 On that basis, the Landlord claims from the Tenant, as compensation for the breach of the Lock-in Period, a sum of ₹25,000 (Rupees Twenty Five Thousand only).

4.4 The Parties agreed this amount, or the basis on which it is computed, as a genuine pre-estimate of the Landlord's loss on an early exit within the Lock-in Period. It is claimed as such, and remains subject to Section 74 of the Indian Contract Act, 1872, under which a sum named in a contract for breach operates as the outer limit of reasonable compensation and not as a penalty the Landlord may recover merely by proving the breach.

Questions about this document

Does the Lock-In Breach Compensation Notice need stamp paper or stamp duty in Punjab and Chandigarh?

See the full position on stamp duty, registration and witnesses

Does the Lock-In Breach Compensation Notice need registration in Punjab and Chandigarh?

See the full position on stamp duty, registration and witnesses

What does the Lock-In Breach Compensation Notice cost on Kagaznama?

Free.

Documents are free. Only kits are paid.

Does the Lock-In Breach Compensation Notice need witnesses?

None required by law in either jurisdiction for a notice of this kind — a signature by or on behalf of the Landlord is enough.

See the full position on stamp duty, registration and witnesses

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