Sublease Agreement Format in Word India

SUBLEASE AGREEMENT

This Sublease Agreement ("Agreement") is made and entered into on this [Day] day of [Month], [Year] ("Effective Date"),

BETWEEN:

1. [Sublessor Entity Name], a company incorporated under the provisions of the Companies Act, 2013/an individual residing at [Sublessor Address], bearing [CIN/Aadhaar No.], hereinafter referred to as the "Sublessor" (which expression shall unless repugnant to the context or meaning thereof, include its successors-in-interest, permitted assigns, and legal representatives);

AND

2. [Sublessee Entity Name], a company incorporated under the provisions of the Companies Act, 2013/an individual residing at [Sublessee Address], bearing [CIN/Aadhaar No.], hereinafter referred to as the "Sublessee" (which expression shall unless repugnant to the context or meaning thereof, include its successors-in-interest, permitted assigns, and legal representatives).

(The Sublessor and Sublessee are hereinafter collectively referred to as "the Parties" and individually as "a Party")

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1. Document Preamble & Recitals

WHEREAS:

A. The Sublessor is the lawful tenant of certain premises located at [Full Property Address, including Building Name, Street, Locality, City, District, State, Pincode], more particularly described in Schedule A attached hereto (the "Property"), by virtue of a Lease Agreement dated [Date of Original Lease] (the "Master Lease") executed between [Original Landlord Name], residing at/having its registered office at [Original Landlord Address] (the "Landlord"), and the Sublessor. A copy of the Master Lease is attached hereto as Schedule B.

B. The Master Lease permits the Sublessor to sublease a portion of the Property, subject to [specify conditions, e.g., obtaining the Landlord's prior written consent / no such consent required]. The Sublessor confirms that [such consent has been obtained from the Landlord on [Date of Consent] / such consent is not required / the Sublessor shall endeavor to obtain such consent prior to the Effective Date].

C. The Sublessor desires to sublease a specific portion of the Property, comprising approximately [Area in Square Feet / Square Meters] super built-up area, located at [Specific Description of the Sublet Area, e.g., "the entire ground floor", "Suite 301 on the third floor", "the rear office space"], including [mention any specific inclusions like parking, furniture, fixtures], and more particularly described in Schedule C attached hereto (the "Premises").

D. The Sublessee desires to take the Premises on sublease from the Sublessor, and the Sublessor agrees to sublease the Premises to the Sublessee, under the terms and conditions hereinafter appearing.

E. This Agreement shall be governed by and construed in accordance with the laws of India, specifically the laws of the State of [State where property is located].

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2. Operational Definitions

For the purposes of this Agreement, unless the context otherwise requires, the following terms shall have the meanings ascribed to them below:

1. Agreement: This Sublease Agreement, including all its Schedules and any amendments or addenda executed in accordance with its terms.
2. Effective Date: The date first written above, on which this Agreement comes into force.
3. Force Majeure Event: Any event or circumstance beyond the reasonable control of a Party, including without limitation, acts of God, war, revolution, riot, civil commotion, strikes, lockouts, epidemics, pandemics, government orders, natural calamities, fire, flood, or explosion.
4. Landlord: [Original Landlord Name], the owner/primary lessor of the Property under the Master Lease.
5. Master Lease: The Lease Agreement dated [Date of Original Lease] executed between the Landlord and the Sublessor, concerning the Property.
6. Premises: The specific portion of the Property described in Recital C and Schedule C, which is the subject of this Sublease Agreement.
7. Property: The entire premises located at [Full Property Address], as described in Recital A and Schedule A.
8. Security Deposit: The refundable amount paid by the Sublessee to the Sublessor as security for the performance of the Sublessee's obligations under this Agreement.
9. Sublease Rent: The monthly rent payable by the Sublessee to the Sublessor for the use and occupation of the Premises, as specified in Clause 3.4.
10. Sublease Term: The duration of this Sublease Agreement, commencing on the Effective Date and ending on the Sublease Expiry Date, as defined in Clause 3.3.
11. Sublessee: [Sublessee Entity Name], the party taking the Premises on sublease.
12. Sublessor: [Sublessor Entity Name], the party granting the sublease.

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3. Substantive Terms & Obligations

1. Grant of Sublease: The Sublessor hereby grants, and the Sublessee hereby accepts, the sublease of the Premises, subject to the terms and conditions of this Agreement and the Master Lease.
2. Compliance with Master Lease: The Sublessee acknowledges receipt of a copy of the Master Lease and covenants and agrees to perform and observe all terms, conditions, covenants, and obligations applicable to the tenant/lessee under the Master Lease, save and except for the payment of original rent to the Landlord and any obligations explicitly reserved for the Sublessor hereunder. The Sublessee shall not commit any act or omission that would constitute a default under the Master Lease. Any breach by the Sublessee of the terms of this Agreement which also constitutes a breach of the Master Lease shall be deemed a material default hereunder.
3. Sublease Term:
   • 3.3.1. The Sublease Term shall commence on the Effective Date and shall continue for a period of [Number] months/years, expiring on [Sublease Expiry Date] ("Sublease Expiry Date"), unless terminated earlier in accordance with the provisions of this Agreement.
   • 3.3.2. The Sublessee shall have [Number] option(s) to renew this Sublease for an additional term of [Number] months/years each, provided that the Sublessee gives written notice to the Sublessor of its intention to renew at least [Number] days prior to the Sublease Expiry Date, and subject to mutually agreed revised terms and conditions, including an [Percentage]% increase in Sublease Rent.
4. Sublease Rent:
   • 3.4.1. The Sublessee shall pay to the Sublessor a monthly Sublease Rent of Indian Rupees [Amount in Words] (INR [Amount in Figures]) ("Sublease Rent"), exclusive of any applicable Goods and Services Tax (GST) or other statutory levies, which shall be borne by the Sublessee.
   • 3.4.2. The Sublease Rent shall be payable in advance on or before the [Day, e.g., 5th] day of each calendar month.
   • 3.4.3. Payment shall be made via [Bank Transfer / Cheque / NEFT / RTGS] to the Sublessor's bank account, details of which are: [Bank Name], [Account Number], [IFSC Code].
   • 3.4.4. A late payment fee of [Percentage]% per month shall be levied on any Sublease Rent remaining unpaid after [Number] days from its due date.
   5. Security Deposit:
   • 3.5.1. On or before the Effective Date, the Sublessee shall pay to the Sublessor a refundable Security Deposit of Indian Rupees [Amount in Words] (INR [Amount in Figures]) ("Security Deposit").
   • 3.5.2. The Security Deposit shall be held by the Sublessor without interest and shall be returned to the Sublessee within [Number] business days after the Sublease Expiry Date or earlier termination of this Agreement, subject to deductions for any: (a) unpaid Sublease Rent or other charges; (b) costs of repairs for damage to the Premises beyond normal wear and tear; (c) cleaning charges; and (d) any other amounts due to the Sublessor under this Agreement.
5. Utilities and Services: The Sublessee shall be solely responsible for the payment of all utility charges directly attributable to the Premises, including but not limited to electricity consumption, water consumption (if separately metered), internet, and telephone services. [Specify if any utilities are included in rent, e.g., "Maintenance charges for common areas, including security and common electricity, as charged by the Landlord under the Master Lease, shall be borne by the Sublessee."]
6. Permitted Use: The Premises shall be used solely for [Specify Permitted Use, e.g., "office purposes", "retail outlet", "residential dwelling"] and for no other purpose without the prior written consent of the Sublessor and, if required, the Landlord. The Sublessee shall not use the Premises for any illegal, immoral, hazardous, or noxious purpose, or in any manner that causes nuisance or disturbance to the Landlord or other occupants of the Property.
7. Maintenance and Repairs:
   • 3.8.1. The Sublessee shall maintain the interior of the Premises in good, clean, and tenantable condition, normal wear and tear excepted, and shall carry out all minor repairs, including but not limited to plumbing, electrical fixtures, and interior painting, at its own cost.
   • 3.8.2. Structural repairs, major repairs, and repairs to the common areas of the Property (as per the Master Lease) shall be the responsibility of the Sublessor, provided such repairs are not necessitated by the fault or negligence of the Sublessee.
8. Alterations: The Sublessee shall not make any structural alterations, additions, or improvements to the Premises without the prior written consent of the Sublessor and the Landlord (if required by the Master Lease). All approved alterations shall be carried out at the Sublessee's expense and, unless otherwise agreed in writing, shall become the property of the Landlord upon termination of this Agreement.
9. Insurance: The Sublessee shall obtain and maintain, at its own expense, adequate insurance coverage for its movable assets, fixtures, and fittings within the Premises, and third-party liability insurance, for the entire Sublease Term. The Sublessee shall provide proof of such insurance to the Sublessor upon request.
10. Assignment and Further Subletting: The Sublessee shall not assign, transfer, encumber, or further sublease this Agreement or any part of the Premises without the prior written consent of the Sublessor and the Landlord.
11. Quiet Enjoyment: Subject to the Sublessee observing all the terms and conditions of this Agreement, the Sublessee shall be entitled to quietly and peacefully possess and enjoy the Premises during the Sublease Term without any interruption from the Sublessor or any person claiming through the Sublessor.
12. Indemnification: The Sublessee shall indemnify and hold harmless the Sublessor from and against any and all claims, liabilities, losses, damages, costs, and expenses (including reasonable legal fees) arising out of or in connection with: (a) any breach of this Agreement by the Sublessee; (b) any act or omission, negligence, or willful misconduct of the Sublessee or its employees, agents, or invitees; or (c) any damage to the Premises or Property caused by the Sublessee, beyond normal wear and tear.

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4. Default, Termination, and Remedies

1. Events of Default: The occurrence of any of the following shall constitute an "Event of Default" by the defaulting Party:
   • 4.1.1. Failure by the Sublessee to pay Sublease Rent or any other amounts due hereunder within [Number] business days of the due date.
   • 4.1.2. Breach by either Party of any material term, condition, or covenant of this Agreement, other than those specified in Clause 4.1.1.
   • 4.1.3. Any insolvency, bankruptcy, winding-up, or appointment of a receiver or liquidator for a Party.
   • 4.1.4. Abandonment of the Premises by the Sublessee for a period exceeding [Number] consecutive days without prior written notice to the Sublessor.
   • 4.1.5. Any act or omission by the Sublessee that leads to a default by the Sublessor under the Master Lease.
2. Notice and Cure Period:
   • 4.2.1. Upon the occurrence of an Event of Default by either Party, the non-defaulting Party shall issue a written notice of default to the defaulting Party, specifying the nature of the default.
   • 4.2.2. For monetary defaults (e.g., non-payment of Sublease Rent), the defaulting Party shall have a period of [Number] business days from the date of receipt of the notice to cure such default.
   • 4.2.3. For non-monetary defaults, the defaulting Party shall have a period of [Number] business days from the date of receipt of the notice to cure such default. If the non-monetary default is not capable of being cured within [Number] business days, the defaulting Party shall commence to cure such default within [Number] business days and diligently pursue such cure to completion within a reasonable time, not exceeding [Number] days.
3. Remedies for Sublessor's Default: If the Sublessor defaults and fails to cure within the stipulated period, the Sublessee may, without prejudice to any other remedies available, either: (a) terminate this Agreement; (b) seek specific performance; or (c) claim damages arising from such default.
4. Remedies for Sublessee's Default: If the Sublessee defaults and fails to cure within the stipulated period, the Sublessor may, without prejudice to any other remedies available:
   • 4.4.1. Terminate this Agreement by giving [Number] days' written notice to the Sublessee, whereupon the Sublessee shall immediately vacate and surrender the Premises.
   • 4.4.2. Re-enter and take possession of the Premises.
   • 4.4.3. Retain the Security Deposit (or a portion thereof) to offset any outstanding dues or damages.
   • 4.4.4. Claim all unpaid Sublease Rent, utilities, damages, and other amounts due from the Sublessee.
   • 4.4.5. Initiate legal proceedings for eviction, recovery of dues, and damages.
5. Termination by Operation of Master Lease: This Agreement shall automatically terminate if the Master Lease is terminated for any reason whatsoever. In such event, the Sublessor shall not be liable to the Sublessee for any damages or losses, except for the return of any unutilised portion of the Security Deposit.
6. Surrender of Premises: Upon the Sublease Expiry Date or earlier termination of this Agreement, the Sublessee shall peacefully vacate and surrender the Premises to the Sublessor in good, clean, and tenantable condition, ordinary wear and tear excepted, removing all its movable property and restoring the Premises to its original condition, save for approved alterations. Any property left behind by the Sublessee after [Number] days of termination shall be deemed abandoned and may be disposed of by the Sublessor at the Sublessee's cost and risk.

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5. Boilerplate Legal Provisions

1. Severability: If any provision of this Agreement is held to be invalid, illegal, or unenforceable by a court of competent jurisdiction, such provision shall be severed from this Agreement, and the remaining provisions shall continue in full force and effect as if the invalid, illegal, or unenforceable provision had never been part of this Agreement.
2. Entire Agreement: This Agreement, including its Schedules, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior discussions, negotiations, understandings, and agreements, whether written or oral.
3. Amendments: No amendment, modification, or waiver of any provision of this Agreement shall be effective unless in writing and signed by duly authorized representatives of both Parties.
4. Force Majeure: Neither Party shall be held liable or responsible to the other Party, nor be deemed to have defaulted or breached this Agreement, for any failure or delay in fulfilling or performing any term of this Agreement when such failure or delay is caused by a Force Majeure Event. The Party affected by a Force Majeure Event shall promptly notify the other Party and shall use all reasonable endeavors to resume performance as soon as practicable.
5. Notices: All notices, requests, demands, and other communications under this Agreement shall be in writing and shall be deemed duly given: (a) upon personal delivery; (b) upon confirmed receipt if sent by registered post with acknowledgment due or courier service; or (c) upon successful transmission if sent by email with read receipt, to the addresses specified below or to such other address as a Party may designate by written notice to the other:
   • To Sublessor: [Sublessor Entity Name] [Sublessor Address] Email: [Sublessor Email]
   • To Sublessee: [Sublessee Entity Name] [Sublessee Address] Email: [Sublessee Email]
6. Waiver: No waiver by either Party of any breach or default hereunder shall be deemed a waiver of any subsequent breach or default of the same or similar nature. No delay or omission by either Party to exercise any right or power accruing upon any non-compliance or default shall impair any such right or power or be construed to be a waiver thereof.
7. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of India, without regard to its conflict of laws principles, and specifically the laws of the State of [State where property is located].
8. Dispute Resolution:
   • 5.8.1. Negotiation: Any dispute, controversy, or claim arising out of or relating to this Agreement, including its existence, validity, interpretation, performance, breach, or termination, shall first be attempted to be resolved amicably through good faith negotiations between senior representatives of the Parties.
   • 5.8.2. Arbitration: If the Parties are unable to resolve the dispute through negotiation within [Number] days of either Party giving notice of dispute, the dispute shall be referred to and finally resolved by arbitration in accordance with the provisions of the Arbitration and Conciliation Act, 1996, as amended from time to time.
     • The arbitration shall be conducted by [Number, e.g., a sole / three] arbitrator(s) appointed in accordance with the rules of [Name of Arbitration Institution, e.g., the Indian Council of Arbitration (ICA) / Mumbai Centre for International Arbitration (MCIA)].
     • The seat and venue of arbitration shall be [City where arbitration will take place], [State], India.
     • The language of the arbitration shall be English.
     • The award rendered by the arbitrator(s) shall be final and binding on the Parties.
   • [ALTERNATIVE - Court Jurisdiction (if arbitration is not preferred)]:
     • Jurisdiction: Subject to Clause 5.8.1 (Negotiation), the Courts in [City where property is located] in the State of [State where property is located], India, shall have exclusive jurisdiction to entertain any suit or proceeding arising out of this Agreement.
9. Costs and Attorney's Fees: In the event of any litigation, arbitration, or other legal proceeding arising from or relating to this Agreement, the prevailing Party shall be entitled to recover from the non-prevailing Party its reasonable costs and attorney's fees incurred in connection with such proceeding.
10. Headings: The headings and titles in this Agreement are for convenience of reference only and shall not affect the interpretation or construction of this Agreement.
11. Counterparts: This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

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6. Formal Execution Block

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the Effective Date first written above.

FOR AND ON BEHALF OF SUBLESSOR:

[Sublessor Entity Name] [Type of Entity, e.g., a Company incorporated under the Companies Act, 2013 / an Individual]

By: _______________________________ Name: [Signatory Name] Title: [Signatory Title, e.g., Director / Proprietor / Authorized Signatory] Date: [Date]

WITNESSES:

1. Signature: _______________________________ Name: [Witness 1 Name] Address: [Witness 1 Address]

2. Signature: _______________________________ Name: [Witness 2 Name] Address: [Witness 2 Address]

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FOR AND ON BEHALF OF SUBLESSEE:

[Sublessee Entity Name] [Type of Entity, e.g., a Company incorporated under the Companies Act, 2013 / an Individual]

By: _______________________________ Name: [Signatory Name] Title: [Signatory Title, e.g., Director / Proprietor / Authorized Signatory] Date: [Date]

WITNESSES:

1. Signature: _______________________________ Name: [Witness 1 Name] Address: [Witness 1 Address]

2. Signature: _______________________________ Name: [Witness 2 Name] Address: [Witness 2 Address]

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[OPTIONAL BLOCK - ONLY IF LANDLORD CONSENT IS REQUIRED BY MASTER LEASE]

CONSENT OF LANDLORD

We, [Original Landlord Name], the Landlord of the Property, hereby acknowledge receipt of a copy of this Sublease Agreement and give our prior written consent to the subleasing of the Premises by [Sublessor Entity Name] to [Sublessee Entity Name] in accordance with the terms hereof and the Master Lease. This consent does not relieve the Sublessor of its primary obligations under the Master Lease.

FOR AND ON BEHALF OF LANDLORD:

[Original Landlord Name]

By: _______________________________ Name: [Landlord Signatory Name] Title: [Landlord Signatory Title, e.g., Owner / Authorized Signatory] Date: [Date]

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SCHEDULE A – DESCRIPTION OF THE PROPERTY (MASTER LEASE PREMISES)

`[Detailed description of the entire property covered by the Master Lease, including:

• Full postal address.
• Area (e.g., total super built-up area).
• Boundaries (if applicable, e.g., "bounded on the North by...", "on the South by...").
• Any specific identifying details like survey numbers, plot numbers, floor numbers, etc., as per the Master Lease.]`

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SCHEDULE B – MASTER LEASE

[Attach a copy of the Master Lease Agreement here or explicitly state: "A copy of the Master Lease Agreement dated [Date of Master Lease] between [Landlord Name] and [Sublessor Name] is attached as Annexure B to this Agreement."]

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SCHEDULE C – DESCRIPTION OF THE PREMISES (SUBLEASED PORTION)

`[Detailed description of the specific portion of the Property being subleased, including:

• Specific location within the Property (e.g., "entire ground floor", "Suite No. 301 on the 3rd floor").
• Approximate super built-up area (mention exact area if known).
• Number of rooms, cabins, meeting rooms, etc.
• Any exclusive amenities included (e.g., "including 2 dedicated parking spaces").
• A simple floor plan or sketch showing the boundaries of the subleased premises, if available and attached.]`