Security Deposit Refund-Lease Agreement made but unable to move due to lockdown
4 years ago
Hello. I live in NCR and was supposed to relocate to Mumbai from April 1st, 2020. Therefore, I finalized a residential property and got into an agreement at the end of February with the landlord. I paid the entire security deposit upfront before registration. The agreement was supposed to be effective from April 1st and stated that there would be a 6-month lock-in period.
Because of the country-wide lockdown imposed by central and state governments on March 25, I could not travel to Mumbai at the end of the month as planned. Therefore, I never had the possession of the flat and no keys were handed over to me. Moving into the Mumbai apartment also required a meeting with the Housing Society Secretary as a pre-requisite and this too never happened.
With the Coronavirus cases continuing to rise in Mumbai, it has now become impossible for me to relocate to Mumbai. Therefore, I requested my landlord for a refund of the deposit for which I am seeking certain clarifications as below:
(1) As an act of God (Coronavirus) prevented the commencement of the agreement on April 1st (as I didn't receive the keys and didn't take possession), does the agreement automatically become null and void?
(2) Am I entitled to a full refund of the security deposit I had paid to the landlord?
(3) Does the landlord have any legal grounds for not refunding the security deposit, e.g. the six-month lock-in clause?
There is no force majeure clause in the agreement and the agreement states that it is subject to the Maharashtra Rent Act 1999.
Please guide. Thanks!
1) You have not taken possession of the property as the lease was to commence from April1, 2020.
2) The security deposit is refundable as you have entered possession of the building and
3) The six month lock in period will not be applicable in your case.
You may contact us through this portal in case you have any additional queries on the subject.
Ayantika Mondal @ Prime Legal
Responded 4 years ago
1. We may call this - as per the direction of the govt. the condition of the agreement is not fulfilled, hence you may request to terminate the agreement and refund the deposit amount.
2. You are entitled to get complete refund.
3. The agreement is not force, so he may not have strong ground
My answers are as follows:
(1) As an act of God (Coronavirus) prevented the commencement of the agreement on April 1st (as I didn't receive the keys and didn't take possession), does the agreement automatically become null and void?
Ans. It cannot become null and void but it is voidable that is at the option of either party it can be declared as null and void on the principle of Force Majeure
(2) Am I entitled to a full refund of the security deposit I had paid to the landlord?
Ans: yes, due to change of circumstances you can cancel the same and claim entire amount back.
(3) Does the landlord have any legal grounds for not refunding the security deposit, e.g. the six-month lock-in clause? There is no force majeure clause in the agreement and the agreement states that it is subject to the Maharashtra Rent Act 1999.
Ans: The clause Force Majeure is by implication in every document as it is common sense and can be invoked by the beneficiary party, if that clause is benefial then you can take shelter under such implied clause.
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