Firm A entered in to a registered lease agreement for a commercial space for five years, with us on April 2023. There is Lock-in period a clause for financial compensation, if firm A exits the lease or if the lease is prematurely terminated due to the fault of firm A, before the initial three years (Lock-in period) .
Subsequently in July 2023 firm A avails a loan from a bank by mortgaging the assets–in- trade of their business. After a few months firm A defaults in their payments to us, as well as to the bank, and we terminated the lease.
In case of a legal recovery —–who will get priority to the assets –in- trade of firm A – us or the bank?
As our Registered Agreement of Dues was entered in to PRIOR TO BANK’s loan will we be the preferred beneficiary I the event of Sale proceeds of the concerned Asset, as both are civil liabilities.