Security Deposit and Rent Agreement Disputes: Legal Solutions

Learn what to do when landlords refuse to return security deposits or violate rent agreement terms.

Advocate Harshit Sachar, Ludhiana

8/8/20251 min read

Security deposit-related disputes are common in rental relationships. These arise when landlords deduct excessive amounts or fail to return the deposit without justification. Rent agreements often lack clarity on this aspect, making legal intervention necessary.

Typical Disputes:

  • Arbitrary deductions for wear and tear

  • Refusal to refund security deposit

  • Breach of agreement clauses by either party

  • Illegal terms inserted in rent agreements

Legal Position:

  • The rent agreement is a contract, and both parties are bound by its terms.

  • In the absence of a specific clause, landlords must return the full security amount after deducting legitimate dues.

  • Tenants have the right to challenge unfair deductions in court.

What Tenants Can Do:

  • Serve a legal notice requesting refund

  • File a civil suit for recovery of the deposit

  • Lodge a complaint with the consumer forum if services were deficient

It is always advisable to have a written rent agreement that clearly mentions rent amount, duration, security deposit, and maintenance responsibilities. This avoids future conflicts and supports the tenant’s case legally.