Security deposit...
tdeli
(Querist) 28 March 2013
This query is : Resolved
As per the Local rent laws Security Deposit cannot be adjusted with any default of rent by the tenant as the purpose of the Security Deposit is only related to any Repair Renewal etc at the end of Tenancy.
In a case of default of rent, the Land lord took a plea in his pleadings that no Security Deposit was deposited with him ever.
During the course of cross Examination he again stated that he dint hold any Security Deposit. But when he was shown the Original Documentary Evidence of Security Deposit during the Cross Examination which was later submitted as an evidence in the court also, the Land Lord stated that-
" Yes i agree that i had been paid Security Deposit but the same is been adjusted with rent till date".
My queries are -
1. As per the local law the Security Deposit cannot be adjusted as default in rent but can a Security Deposit be paid with the understanding between the landlord and the tenant that it will be used for default of rent.
2. Can this statement of the Landlord during the cross examination enough proof to admit that the Security Deposit was deposited with an understanding that the same can be used for any default of rent.
3. Does the term "Till Date" stated by the Landlord means the date of his statement during the Cross Examination.
4. Can we take the plea that if the default of rent if any was adjusted by the Landlord how can there be any default on the date of service of any notice. There is no cause off action.
Thanks...
Raj Kumar Makkad
(Expert) 01 April 2013
1. Yes, such understanding can be built.
2. yes.
3. Yes.
4. You can take but still this shall depend upon the facts whether the landlord had got cause of action or not because if security deposit was Rs. 5,000/- and the ue rent of more than that then even after adjustment, the landlord has got cause of action to file the petition.
ajay sethi
(Expert) 01 April 2013
agree with experts
tdeli
(Querist) 02 April 2013
The security deposit was 4 times more then the default claimed by the landlord. The default was for 1 year though the security deposit could cover 5 years of rent.
Thanks ...
