Forfeiture of advance/caution deposit by landlord
md ismail
(Querist) 07 August 2015
This query is : Resolved
Issue: My Friend Vijay (age30) and his Co-Worker Sirisha (age 52) has taken a commercial property on rent at vidyanagar, on 5th floor of signing a rental agreement with the land lady. However, her husband use to deal with vijay and land lady never spoken or seen vijay anytime during agreement or during use of proper by vijay. Vijay and Sirisha took the property on rent for 11 months agreement and paid Rs. 50000 as deposit (however in rental agreement, owner used the word caution deposit). Two important conditions from rental agreement are: condition no. 3: The tenant has deposited an amount of caution deposit of Rs. 50000 as caution deposit which is refundable to the tenant at the time of vacating the said premises. Condition no. 9:Three months advance notice should be given by either party to terminate this agreement. Now main issue: Sirisha as said is 52 years old. The lift of building works till 4th floor. she daily used to go upto 4th floor by lift and then take foot stairs for 5th floor. They run the office for 5 months, but due to daily use of stairs from 4th to 5th floor sirisha got sever pain in her legs. There are many times she has to come down through stairs entire 5 floors due to power cuts. Even the students of 4th floor owner sit on stairs causing problem to sirisha and even she made 100s of complains daily they sit on stairs. Sirisha and vijay decided to vacate the place and one day sirisha met the land owner and told him that she cant walk anymore on stairs due to sever leg pain and she wants to vacate the premises due to health reasons. The owner said "ok madam, if you are having problem then you vacate i have no problem. you give me one key so that i can show the space to someone else". when she told about advance money, he told: "i will give you the amount as soon as someone else occupy the place. As you are vacating suddenly without giving 3 months notice". She said ok. after two days they sent office boy with keys and told to the owner that coming saturday or sunday we are shifting. Owner said ok to the office boy too. Now they shifted the everything on sunday. When sirisha called the owner when he will give the amount of deposit, owner asked her to come and meet along with vijay. both vijay and sirisha went and met the owner. now he says: whenever new tenant occupy the place i will give the amount. but i will deduct the amount from caution deposit as you not gave advance notice. if till 3months no one comes, i will forfeit the entire amount. both sirisha and vijay got shock on this, as the owner never said about forfeiture of amount while signing agreement nor at the time when sirisha requested him on health grounds for vacating nor the agreements says anything about forfeiture. Sirisha and vijay are saying that if you have said this earlier, we would have used the office for remaining months till new tenant occupy the same. because of him they will not only loosing deposit amount but also not using the office for 3 months. They are arguing that owner accepted the request on health ground they are shifting and owner never insisted to give 3 months notice before vacating. suddenly after vacating he is asking notice. Vijay said to owner, as soon as you agreed to vacate on health grounds the old agreement got terminated. if you have problem then you would have told on the requested date that 3 months notice is compulsory. Please suggest sirisha the old lady what she can do now?
rajagopal.s
(Expert) 07 August 2015
HI
The tenant has to give 3 months notice to the landlord. in your case, the worst case scenario is that your friend needs to pay the rental of 3 months in lieu of notice. the owner cannot forfeit the entire advance.
Moreover in your case, it appears that your friends vacated the premises although they could have stayed during the entire 3 months notice period.
R.K Nanda
(Expert) 07 August 2015
query too long.
Guest
(Expert) 07 August 2015
Mr. Md. Ismail,
Instead of using hit and trial method, I advise that Sirisha should consult some local expert to get her case examined with reference to the rental agreement.
Rajendra K Goyal
(Expert) 07 August 2015
Consult some local and show him all the documets.
