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Bryan   12 August 2021

Law regarding refund of l&l security deposit

Dear Sir,

I wanted to know what is the law with regards to refund of security Deposit on expiry of the licence period related to Leave and license agreement ? The agreement entered into is standard Maharashtra govt leave & license draft for online registration. This draft on mentions how much is the security deposit but is completely silent as to when (within how many days) it should be returned to the tenant.

As per the law when is landlord required to refund the deposit to the tenant ?

If possible kindly quote the section of the Law that is applicable.

I'll be thankful if you could share your knowledge in this regard.

Thanks 🙏


 8 Replies

G.L.N. Prasad (Retired employee.)     13 August 2021

Just make a formal application requesting authority to refund the security deposit and let them respond with such reasons for not refunding such deposit.  It may be a nonrefundable SD during the tenant and landlord relations continue.

1 Like

P. Venu (Advocate)     13 August 2021

What is the context in which the query is posted?

1 Like

Bryan   14 August 2021

I'm the tenant and the leave and license agreement is getting over in a few weeks. Landlord is saying that he'll return the security deposit after we vacate the flat but is unwilling to give any time frame. That's why I wanted to know what is the law in Maharashtra with regards to refund of Leave and license security Deposit? The registered agreement doesn't mention anything as to when the security deposit becomes refundable.

If you could share details as to which section of the law is applicable in this regard I'll be grateful.


Thanks 🙏

G.L.N. Prasad (Retired employee.)     14 August 2021

The general practice is that, after getting the advance from the new tenant, the landlord will refund the amount.  At the same time Tenant wants the SD for paying to the new landlord.  The agreement must mention such laid down agreed term of time frame for refunding SD.  Both are right in their stand.  You can collect a post dated cheque with a covering letter from the landlord that the amount of the cheque represents refundable SD to be paid immediately on vacation, and as landlord is not able to pay, he is admitting the liability and issuing a post dated cheque No...............of.................Bank with dt...............with a promise to keep sufficient funds available on that date etc.,

1 Like

P. Venu (Advocate)     14 August 2021

Equity requires that the SD is refundable coterminous with the cessation of the tenancy and vacation of the premises.

1 Like

Bryan   15 August 2021

Many thanks Sir for your guidance. I'll do as advised.

Just for my knowledge is there any law which is applicable to refund of leave and license security deposit ?

P. Venu (Advocate)     15 August 2021

To my knowledge, there are no statutory law in this context. However, every contract, even in the absence of specific terms and conditions, ought to be informed by principles of equity.

1 Like

Bryan   15 August 2021

Thanks once again for your guidance. 🙏

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