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Security deposit adjustable ...

(Querist) 08 April 2012 This query is : Resolved 
Hello,

A security deposit was given by the tenant to the landlord.
If the default in payment of rent is proved against the tenant can the tenant take a plea -

1.That there is no default as the security deposit is lying with the Landlord and the same could be adjusted by the default in payment of rent.

2.If the landlord has made a statement before the court that there is no security deposit lying with me as the security deposit has been adjusted with the default in the payment of the rent and such a statement is made much after the filing of the case.

Thanks ...
V R SHROFF (Expert) 08 April 2012
Security deposit for diff purpose [say breakages or damages to property etc]
Rent shd be paid regularly.
Raj Kumar Makkad (Expert) 08 April 2012
1. This plea can be taken by tenant but the same is not tenable because such person is expected to make regular payment whereas the deposit is for an exigency period.

2. The landlord is expected to intimate the tenant about the utilization of security deposit prior to starting the deposit.
tdeli (Querist) 08 April 2012
I understand that the Security Deposit is for a diff purpose but can the tenant take the plea that -

If the landlord has agreed in his statements that "the security deposit is ADJUSTED regarding rent payable by the tenant till today",
then in that scenario can the tenant take the plea that no such default of rent payable lies and the suit of eviction does not stands at all.

Thanks ...
ajay sethi (Expert) 08 April 2012
yes if landlord has taken the plea that security deposit has aleready been adjusted against rent payable then there is no default .
Guest (Expert) 08 April 2012
1) Deposit for Security cannot absolve the tenant from making regular payment of rent. Non-payment of rent is a default beyong any doubt, irrespective of whether the security deposit is there, which has to be adjusted towards any type of dues against the tenant only at the time of expiry of agreement. So, tenant cannot take plea that there is no default.

2) Security deposit, if already adjusted against the dues, the same gets extinguished and the landlord can well say about non-existence of any such deposit, when he has stated that the deposit has already been adusted against the dues of default.
tdeli (Querist) 08 April 2012
1. Security deposit is not already adjusted but the landlord has taken the plea that "he has adjusted the rent dues with the security deposit lying with him till the date of his statement and there is no more security deposit with him " my ques.is - if he himself has given this statement that he has adjusted the rent dues till the date of his statement how can there be any default left.
Guest (Expert) 08 April 2012
You seem to be mixing up two different issues in one. Default happened in payment of rent if you did not pay the rent on due dates. Adjustment of dues out of the security deposit is a separate issue. That was not called for had you paid due rent on due dates. The security deposit was refundable amount to be claimed separately after expiry of agreement.

But, as you say that the security deposit has not yet been adjusted towards the rent dues on account of default, the landlord has definitely given a wrong statement to mislead the court in that case.

But, the following questions arise out of your own statement:

1) What is the basis of your belief that the security deposit has not yet been adjusted towards the rent? and

2) Was the amount of security deposit equal to the amount of the dues of rent on account of which the security deposit is considered to have been adjusted?
tdeli (Querist) 08 April 2012
The amount of security deposit is huge as compared to the rent dues...
Guest (Expert) 08 April 2012
Naturally, the statement of the landlord proves to be wrong, if he says there is no security deposit after adjusting the rent due.
tdeli (Querist) 08 April 2012
Can we use this statement of the landlord that as per the landlord the security deposit was adjusted with the rent so how can there be any default of rent till the date of the statement.
Guest (Expert) 08 April 2012
Why not? You may take the opportunity.


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