• Rental agreement termination before possession

I have decided to terminate rental agreement before taking key from landlord in Bangalore due to breach of trust. He is not returning rental deposit of 200000 done through online transfer. What are legal options available to me?

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Asked 6 years ago in Property Law
Religion: Hindu

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22 Answers

What are terms and conditions of your leave and licence agreement?

2) there must be clause regarding termination of contract and refund of security deposit

3) terms of contract are sacrosanct

4) if landlord refuses to return SD file summary suit to recover your money with interest

Ajay Sethi
Advocate, Mumbai
94733 Answers
7539 Consultations

5.0 on 5.0

Dear Client,

Issue legal notice for refund, failure to do so, file complain u/s 406, 420 IPC sitting breach of trust. Last remedy, recovery suit.

Yogendra Singh Rajawat
Advocate, Jaipur
22636 Answers
31 Consultations

4.4 on 5.0

You mean to say, that you never took the possession of the property and started residing therein? Give us some more inputs.

In light of the limited facts shared by you, I will advise you to send a legal notice to this landlord and seek recovery of your security deposit.

Vibhanshu Srivastava
Advocate, Lucknow
9600 Answers
303 Consultations

5.0 on 5.0

1. what is the breach of trust you complain of against the landlord?

2. have you signed any contract with the landlord?

3. if yes, is there any lock in period in contract during which the agreement cannot be terminated?

4. the landlord will try to justify his retention of your deposit on the basis that as the deal got struck with you he had to refuse another potential tenant and now since you are terminating the contract, he has lost that tenant as well and thus his premises will remain unoccupied and he will lose on the rental money

5. pending above clarification from you, the only legal action which you can take in meanwhile is to issue him a legal notice to refund your deposit

6. kindly give further information in follow up query

Yusuf Rampurawala
Advocate, Mumbai
7515 Answers
79 Consultations

5.0 on 5.0

The terms and condition of the contract need to be read through to better understand as to what will happen to the rental deposit you have already paid in case you wish to terminate the rental agreement. Further, it is also important to know what kind of breach of trust has happened?

Meanwhile, it is advisable to first issue a legal notice demanding your money stating in detail the reasons for termination of the agreement. Otherwise, a Recovery suit can be filed against the Landlord for recovery of the money paid alongwith the interest as well.

Shaveta Sanghi
Advocate, Chandigarh
914 Answers
111 Consultations

5.0 on 5.0

You have signed the agreement

As such terms of agreement are binding upon you

You ha e to give notice as per clause in agreement

Ajay Sethi
Advocate, Mumbai
94733 Answers
7539 Consultations

5.0 on 5.0

Before its comes into effect, rescind it,

Yogendra Singh Rajawat
Advocate, Jaipur
22636 Answers
31 Consultations

4.4 on 5.0

Firslty, the agreement comes into force from the date mentioned in the rent agreement.

Secondly, as you said that they have violated the agreement in that case no need to take up the key.

Thirdly, send them a legal notice first asking them to repay the same as they have violated the agreement otherwise you would go for legal action against them.

Fourthly, then you can file a civil suit for recovery of money with all your documents after 15 days of serving the the notice.

Good Luck...!

Sanjay Baniwal
Advocate, South Delhi
5474 Answers
13 Consultations

5.0 on 5.0

Dear Sir,

It is not a joke. How he can refuse to return. You have many options. You can lodge complaint, get issue legal issue, file a civil suit. The following NGO may help you.

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Bitter PIL for landlords, a boon for poor tenants

Petitioners, Dove Drive Without Borders Foundation approached the court contending that tenants in the city have absolutely no bargaining power during negotiations with the landlord for the quantum of money to be paid as security deposit.

Extortion via high deposits demanded as ‘security’ bonds by landlords in Bengalurumust stop, says a group of petitioners — newcomers to the city and good Samaritans— have teamed up to protect the interests of tenants house-hunting in the city. The activists have filed a Public Interest Litigation in the Karnataka High Court addressing the interests of people who do not own homes but must rent housing under one-on-one tenancy agreements with landlords. Such laws already exist in states such asTamil Nadu and Bihar, says Wasim Memon, founder of The Drive without Borders Foundation.

The Foundation, a citizens’ movement that started with the objective of safeguarding the rights of motorists and road users in India and crusaded for a single rate of road tax in all Indian states, is leading the charge.

Waseem Memon said tenants started contacting him on their Facebook page seeking help when faced by Bengaluru’s inequitable rental market. He, a Hyderabadi himself, decided to do something about it.

In the absence of standardised rates for security deposits, it has become customary for landlords to insist upon high security deposits equivalent to 10 months’ rent. For example, a residential property with a monthly rent of `10,000 would command a security deposit of a lakh, while a property with the monthly rent of `30,000 would mean shelling out a proportionate deposit of `3,00,000. This earns the landlord handsome returns through interest earned on the deposits.

The problem is compounded when some homeowners arbitrarily and with impunity get away with deducting amounts of their choosing, posing flippant and vague causes such as ‘damage’ or ‘repainting charges’ as reasons for the deductions.

This unfairly raises the total layout for rent, and results in income loss through the loss of interest for, often, hard-pressed youngsters and recent economic immigrants.

Priyanka Patel, a young professional who started living in a flat in Marathahalli, shelled out `1.5 lakh around two years ago as a security deposit and was faced with no choice but to give away `56,000 to her London-based landlady, though she had agreed to only pay `30,000, ostensibly for “repainting” the property.At one time, the landlady threatened to keep their deposit money if she had any male visitors, even relatives, to the house.

Though the problem extends across all income classes and communities, the unsanctioned practice harms vulnerable groups of, often, young men and women who move to live in Bengaluru to be part of its booming electronics and IT industries, the region’s largest employers.

“Young immigrants and couples in junior positions in jobs who are new to the city are also badly-affected,” says Memon who is leading the group of activists. “They lose lakhs of rupees to landlords each year in the guise of one imagined problem or another. Going to court to establish the nature of the wrongdoing by a landlord is difficult, expensive and time-consuming and not considered a viable option by busy city dwellers. So, in the absence of legal recourse, tenants have little option but to bear the financial burden.”

The practice has become rampant and reached near epidemic proportions, he says: “Keeping this in mind, the Central Government’s draft Model Tenancy Act (first in 2011 and a revised version in 2015) seeks to update the law relating to landlords and tenants across the nation. It is a model law directed for the consideration of state governments. it will provide for a cap on security deposits for tenancy agreements at three months’ rent.”

The statute, if put in place, also seeks a retrospective provision where tenants who have their cash — greater than 3 months’ rent — stuck with landlords may ask for it back, and expect it to be returned within a period of 15 days. The citizens’ group, Drive Without Borders, a Facebook group, has sought a preliminary response from the high court within 21 days of the receipt of the petition.

Dove Drive Without Borders Foundation

S2, 2nd Floor, Olive Garden No.74, Benson Cross Road,

Benson Town Bangalore Bangalore KA 560046 IN

Kishan Dutt Kalaskar
Advocate, Bangalore
6136 Answers
487 Consultations

4.8 on 5.0

Hi,

You have not mentioned what the breach of trust happened. In that case, you may ask for your amount.

Ganesh Singh
Advocate, New Delhi
6757 Answers
16 Consultations

4.5 on 5.0

First of fall since the agreement is no started so thereby it is not effective then it is not binding and the term and conditions are not applicable.

If you have not taken possession and instantly informed the landlord without taking any possession or agreement being started. Issue a legal today itself serve it to land lord to rescind/ revoke the agreement and refund the amount.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

The landlord can deduct a reasonable amount for cost incurred for agreement and other things but cannot forfeit whole amount.

After legal notice if he doenot repay the amount file a civil recovery suit for the recovery of the amount.

Further if there is any breach by the landlord along that also file a complaint under 460 criminal breach of trust and 420 cheating.

And in notice specifically mention the breach by the land lord.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

If you have evidence to prove that you have already sent notice to the landlord that you will not take his house on rent due to breach of Trust then it is duty of the landlord to immediately refund the advance made by you. You can file an application before the rent control officer for  direction against the landlord to refund the advance money.

You can also initiate criminal proceeding against him for the offence of misappropriation of property which is punishable under section 403 of the Indian Penal Code because after repeated request he has not been refunded advance amount.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0

What is the terms and conditions of the rental agreement for termination of the same from either side?

You may issue a legal notice demanding the return of deposit amount if he refuses to return the same invoking the clause in the T&C of the rental agreement and file a recovery suit in the civil court.

T Kalaiselvan
Advocate, Vellore
84934 Answers
2197 Consultations

5.0 on 5.0

I never resided, agreement starts tomorrow

Since you have already entered into an agreement you may be obliged for some statutory deductions, but you can cite the breach of trust as the reason for terminating the agreement and demand the refund.

T Kalaiselvan
Advocate, Vellore
84934 Answers
2197 Consultations

5.0 on 5.0

You can do the following:

1. Once you enter into an agreement, you are liable by it;

2. You can read the terms of the agreement and cancel it if the agreement allows you;

3. If he does not return the deposit send him a legal notice;

4. You can also approach the court and file a suit for recovery;

5. You can play all kinds of pressure tactics and get your deposit back.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

Alright.

Send a legal notice and seek refund of your security deposit.

Vibhanshu Srivastava
Advocate, Lucknow
9600 Answers
303 Consultations

5.0 on 5.0

1) If you have signed rental agreement and if its not got registered yet with registrar, than by today you can send him notice regarding cancellation of rental agreement and return deposit amount at the earliest.

2) As of now you can send him an email keeping into cc broker as well. First try to convince him on phone and get sorted soon.

3) Still he is not listening than send legal notice, see first what broker says. Ask first talk to broker with owner.

Ganesh Kadam
Advocate, Pune
12930 Answers
255 Consultations

4.9 on 5.0

The agreement must have an exit clause and both the parties should abide by the condition of agreement and you may vacate and claim balance refund if not paid by a civil suit.

Vimlesh Prasad Mishra
Advocate, Lucknow
6852 Answers
23 Consultations

4.9 on 5.0

Dear Sir

We need to understand what is that breach of trust. You should put him on notice saying that you are not occupying and hence return of advance.

Feel free to reach us to get back this amount.

Regards

Shettar

Shettar SS
Advocate, Bangalore
182 Answers
1 Consultation

4.4 on 5.0

You can do a civil suit for specific performance or recovery of monies from him. You can exercise the remedy of cheating Complaint under section 420 of IPC.

Prashant Nayak
Advocate, Mumbai
31954 Answers
179 Consultations

4.1 on 5.0

1. If you have evidence of cheating and breach of trust by the owner then you can lodge police complaint against him/her. You do not have to send legal notice to initiate civil suit for the money recovery since you can initiate criminal proceedings against him/her. Discuss with a lawyer on this.

2. Per. Sec. 65A,65B Indian evidence act, Emails, mobile call records and whatsApp chats are permissible evidence in court.

3. A word on termination of the agreement ( before the agreement takes effect ) through digital evidences like., emails,whatsApp chats are also permissible in the court.

4.If you do not have evidence for the above allegations then termination clause has to be followed to terminate agreement ( if agreement already taken effect ).

Niranjan
Advocate, Bangalore
844 Answers
9 Consultations

4.9 on 5.0

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