Our client is a foreign company operating in the ready-made clothing sector. For six years, they rented a store in a well-known mall, paying the full rent for this period in four annual payments. However, two years into the contract, the company experienced significant financial losses, resulting in the depletion of over 75% of its capital.
Consequently, our client requested the landlord to terminate the lease due to their inability to fulfill the remaining lease term. The landlord, however, rejected this request, insisting on the full payment of the rent or the continuation of the lease.
Considering these circumstances, our client sought our assistance in pursuing legal action to terminate the lease due to their financial incapacity. We initiated legal proceedings and prepared a general assembly report proposing the appointment of a liquidator for the company. Additionally, we compiled financial reports indicating the depletion of the company’s capital and its inability to continue its commercial activities. We filed a lawsuit for the termination of the lease based on the company’s financial distress and requested the return of the cheques issued to the landlord.
An accountant expert was appointed in the case and concluded in their report that the company was in liquidation, its capital had been depleted, and it lacked the financial means to continue the lease. Based on this supporting report, the court ruled in our favor by terminating the lease and ordered the landlord to return the cheques issued for the remaining lease period.
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