• Return of deposit

In the month of February I received RS 10000 cash (the total deposit amount being RS 3 lakhs) as a token advance from a party to rent my brand new apartment and based on that I readied the apartment with wood works, lighting, etc for occupation in March. No formal agreement entered. The party after giving the advance also made his choices for the wood works, the proof for that is the carpenter's word. But come March the party became uncontactable, even after several attempts the party remained uncontactable throughout March and April. Finally after more than 2 months, in the month of May the party contacted saying that he was unable to occupy the house and therefore his advance is to be returned. My point is, as I have turned down other interested parties because of recieving this guy's Rs10000 deposit, I informed him that I will return his advance only after I get a tenant. I have confirmed the receipt of this deposit of RS 10,000 to the party by WhatsApp message. Now this party is threatening legal action and police complaint, if the deposit is not returned immediately, based on the evidence of the WhatsApp messages. What should I do. Please advise
Asked 4 years ago in Property Law
Religion: Christian

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14 Answers

Hello,

Such kinda irresponsible and fake people should be punished. Don't return the deposit and file a complaint with the police about they threatening u and all that. You have enough evidence to go against those guys. Deduct your rent for the period they promised they would stay.

Regards

Rahul Mishra
Advocate, Lucknow
13757 Answers
65 Consultations

5.0 on 5.0

Sor you can serve him a legal notice mentioning that you have received the amount based on your oral contract that he shall occupy your flat from so and so month bit since he failed to occupy for 4 months you have suffered the loss of 4 month rent further you got the flat ready on his demand further suffer loss therefore you demand more money from him as compensation for time period and wood work carried out.

He won't take any legal action instead he will be at back step that you can take legal action to recover losses.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

1)return the cash deposit of Rs 10000

2) there is no agreement between you and the licence for giving premises on leave and licence

3) no doubt you have spent some money on interiors of flat

4) it would help you in getting good rent for your premises when you give it on leave and licence

Ajay Sethi
Advocate, Mumbai
87917 Answers
6207 Consultations

5.0 on 5.0

1. Well, in such situation making an agreement always prevent such untoward situations.

2. Now it would be difficult to prove that you readied the falt only for him and for the prospective tenants in general.

3. it is true that because of him you may have lost other tenants but there would be no dearth of tenants either in future date.

4. I do ot think withholding 10k would cause any good to your finances.

5. So you may take reasonable time from him and refund his money. That would help you to induct new tenant as well.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

You should returned the token amount . Actually no agreement is done between you and tenant. Only a token advance is given and no terms are to be come to existence. You can delay the payment ,but you should remit back the same.

Ajay N S
Advocate, Ernakulam
3990 Answers
93 Consultations

5.0 on 5.0

This is my response to you:

1. Since there was no formal agreement then you need not worry;

2. He can maximum send you legal notice;

3. He cannot drag you to court for a small sum;

4. But it is better if you return the money on time;

5. You can also deduct some amount for yourself since he did not occupy the flat on the required time, therefore some amount can be deducted as rent to be paid.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

Dear Client,

No police role in such matters, absolutely of CIVIL nature,

Even you can claim damages and other expanses incurred by you on his demand on wood work,

Oral agreement if valid, even u can bound him to continue the agreement/perform his part.

Advance not returnable on his default.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

Dear Sir,

It is implied that as he who unavailable and broke the contract not entitled for return of advance. Police cannot do any thing as it is purely a civil case. Let him go the Court. Issue a legal notice terminating his contract/agreement and forfeiting the amount.

Kishan Dutt Kalaskar
Advocate, Bangalore
6050 Answers
381 Consultations

4.8 on 5.0

1. Issue legal notice to the person that the deposit is forfeiture based on his commitments was given by him.

2. He can not initiate any legal action against you as the work was done based on this commitments.

3. WhatsApp messages are valid proof in the court of law.

Niranjan
Advocate, Bangalore
844 Answers
9 Consultations

4.9 on 5.0

It is admitted fact that in the month of Feb he gave Rs.10000/- as token advance for rent for occupation in March. He kept you waiting for March, April and now he wants you to return the money in spite of the fact, you have readied the apartment and done woodwork on his choices. You have a strong case. You should do nothing except find out another tenant. As far as legal action by this person is concerned, let him go anywhere. Reply/contest your case boldly. Teach him lesson by contesting the complaint/case and you will definitely win. Anyhow refund of Rs.10000/- will be your last resort in case you fail to contest boldly.

Dalip Singh
Advocate, New Delhi
1039 Answers
36 Consultations

5.0 on 5.0

Please arrange to send him a legal notice through your local lawyer stating the following facts: that you had accepted the deposit from him only on his oral promise that he would take up your apartment on rent; that you had done up the interior works only to suit his requirements; that while you had fulfilled your part of the oral agreement, he only defaulted; and that on account of his wilful default you incurred financial loss. Demand that you need to be compensated adequately for the loss of time and money. Also say that you are legally entitled to recover the cost of the interior works from out of the partial rental deposit (of Rs.100,000) made by him, as you would not otherwise have invested in the interior works but for his oral promise of taking up your apartment on rent.

Swaminathan Neelakantan
Advocate, Coimbatore
1920 Answers
20 Consultations

4.9 on 5.0

You are right to forfeit the token amount as the tenant had promised to take possession when did not honour the same.

He cannot take any legal against you for recovery based on one whatsapp chat and no other evidence. So, you can relax.

Siddharth Jain
Advocate, New Delhi
5928 Answers
101 Consultations

5.0 on 5.0

In the absence of any condition for refund or forfeiture you cannot refuse to return the deposit amount.

In fact you have acknowledged the receipt as well.

Hence why do you complicate the issue and try to settle the matter when they are in simple stage?

T Kalaiselvan
Advocate, Vellore
78070 Answers
1543 Consultations

5.0 on 5.0

If he himself has breached the contract and it led you to lose your other clients then you don't have to return. It depends totally on your will. If he sends you legal notice you can reply the same. If you want to you can return it but purely your wish

Prashant Nayak
Advocate, Mumbai
27247 Answers
88 Consultations

4.4 on 5.0

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