My landlord refuses to give part of my security deposit back

I started staying in an individual house in North Bangalore in the eve of December 2012, and have paid a sum of Rs. 1,70,000 as security deposit. The nature of the problem that I am facing is as follows: 1) Whilst taking the apartment on rent in December 2012, and discussing the rental agreement terms, me and landlord had formally agreed on all of them, and had deliberated them in the written, notarized rental agreement. 2) We discussed on the year-on-year rent increase to be at 5% increment, and I would have to repaint the house when I leave the premises. This was basis on the condition that the landlord repainted the house, before giving possession of the house. 3) Since the landlord was not in a position to repaint the house, he chose a 10% year on year increment instead, and after mutual discussions decided to remove the repainting clause from the agreement. 4) Recently, we found a better apartment in the same vicinity and therefore provided a notice of 30 days (as was described in the rental agreement), and on the agreed date, moved out and had a joint review of the premises - as was provided in terms of fitting and fixtures. 5) The landlord refuses to sign and close the handover documentation, and every 7-8 days, he keeps springing up newer issues, and keeps telling me that I have to pay for it now. 6) In addition, the landlord has now insisted that I repaint the house for him, although the house is in perfect condition, except for the usual wear and tear of staying in for 3.5 years. 7) The landlord has given me a post dated cheque (dated 15 days later) for a sum of Rs. 1,30,000 and has been insisting to deduct money for re-painting and refuses to sign the handover sheet, although we reviewed each of the points ourselves. I am at my wits end now, and really don't know what to do. I have already paid him an annual incremented rent of 10% for the last 3.5 years, and feel it is incorrect if he deducts the money for the repainting as well. What is the best means to take this legally, and ensure that I get the balance of Rs. 40,000 as well from him? Also, solicit your advice on whether I can deposit the first cheque of Rs. 1,30,000 or not - as I need money to pay my current landlord as well. Or do I wait till he issues both cheques to me?