Interest on Security deposit
Dr.Gaurang N. Gandhi
(Querist) 30 January 2011
This query is : Resolved
Is there any SC authority regarding the company has / bound to pay interest on Security deposit?
The fact of the case is that my client has taken agency/ dealership of a company and deposited Rs.1,90,000/- as security deposit. Recently after 3 years of good marketing and selling, the company had terminated the dealership. can file a suit against the company to get back the security deposit along with interest on it from the date of deposition?
Advocate. Arunagiri
(Expert) 30 January 2011
The interest on the security deposit is the personal agreement between the parties. You can not demand interest if it was not agreed earlier.
Normaly the interest will not be paid for the security deposit.
s.subramanian
(Expert) 31 January 2011
You can file a suit for the recovery of the deposit amount. But as adivsed by Mr.Arunagiri,the interest claim will be on the basis of the agreement between you and the company.
Amit Minocha
(Expert) 31 January 2011
the clause of agreement between parties shall govern the interest being due or not
M V Gupta
(Expert) 31 January 2011
Even if the agreement under which the SD was kept with the Company does not provide for payment of interest, if the SD is not refunded as per the agreed terms and delayed, then u can claim interest for the delayed period after issuing a legal notice.
Ahmed Daud Girach
(Expert) 02 February 2011
No,but if company has violated any terms of contract on termination you have cause of action to demand security deposit also saying that termination was not legal and comany is also liable for compensation eqivalent to interest rate.
