Landlord Forfeited Security Deposit and Broker Refused Refund for Unmarried Couple: Know Your Tenant Rights

One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.

Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.

TL;DR: A tenant’s deposit cannot be forfeited simply because an unmarried partner lived with her, unless the leave and licence agreement expressly forbids such an arrangement and the breach is material. A broker who fails to secure the promised renewal must refund the brokerage; you can file a civil suit or consumer complaint for recovery.

When Meera Kapoor, a 25-year-old marketing professional, first rented a 2BHK in Pune’s Koregaon Park area, she never imagined the ordeal that would follow. She and her partner Arjun Mehta had moved in together around mid-2024. The broker, Ramesh Joshi, knew their situation but suggested she present herself as the sole occupant in the leave and licence agreement signed for eleven months with the owner, Alok Khanna and his wife Poonam. About three months later, during a routine visit, the Khannas spotted two workstation setups. Meera, panicked, said a female friend occasionally stayed over. Things came to a head on 12 August 2025 when Poonam Khanna arrived for an inspection. After initially sticking to the story, Meera finally admitted Arjun lived there. Poonam erupted, demanding additional charges, insulting Meera, and insisting the entire deposit of Rs. 60,000 would be forfeited. The second broker, Suresh Patel, who had been hired for renewal at a Rs. 15,000 brokerage, promptly washed his hands off the deal but kept the money. When initial discussions went nowhere, and the brokers denied all knowledge, Meera approached the Chamber of Advocate Sudhir Rao. Advocate Sudhir Rao’s expertise in tenancy and contract matters helped secure a swift resolution: the office issued a legal notice, got the brokers to refund the brokerage in full, and negotiated the return of a substantial portion of the deposit after establishing that the forfeiture was illegal.

Key Facts of the Case

• The leave and licence agreement was for 11 months with a security deposit of Rs. 60,000 and monthly rent of Rs. 32,000.
• Broker Ramesh Joshi knew from the start that Meera and Arjun were an unmarried couple looking for a place together.
• Meera declared only herself as the licensee on paper, following the broker’s advice.
• Broker Suresh Patel was later engaged to renew the licence for another 11 months, and a brokerage of Rs. 15,000 was paid to him.
• The owner’s wife, Poonam Khanna, attempted to unilaterally levy an extra Rs. 10,000 per month for every month the partner had stayed, and declared the entire deposit forfeited.
• Suresh Patel refused to refund the Rs. 15,000 even though the renewal never materialised, falsely claiming ignorance of the couple’s arrangement.

The Direct Legal Answer

No landlord can capriciously confiscate a tenant’s security deposit just because an unmarried partner lived on the premises. The right to privacy and to live with a partner of one’s choice is a fundamental right under Article 21 of the Constitution, and landlord disapproval does not create a contractual breach unless the agreement explicitly and lawfully restricts such a stay. The demand for Rs. 10,000 per month as a penalty is extortionate and has no legal basis. As for the broker, Suresh Patel’s refusal to refund the brokerage is a clear breach of contract: he was paid to get the licence renewed, he failed to do so, and he cannot retain the money. Both the deposit and the brokerage are recoverable through civil proceedings or a consumer forum complaint.

Advice in Such Cases

Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation to come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Never hand over additional money or agree to forfeiture under pressure. Even a verbal threat to withhold the deposit can be effectively countered if you stand your ground and document everything. Send a formal legal notice immediately—this often forces the other side to negotiate. And here’s the thing, tenancy disputes, especially when brokers are involved, turn heavily on evidentiary details that general practitioners may overlook. An advocate with domain-specific experience knows exactly which documents to preserve, what admissions to nail down, and how to structure the notice to create pre-litigation leverage.

Applicable Sections of Law

In matters like these, the Indian Contract Act, 1872 provides the foundation. Section 73 permits a claim for damages when a contract is broken. When a party fails to perform a service they were paid for—like the broker here—Section 73 read with Section 74 gives the right to compensation or refund. If the landlord had evicted the tenant without due process, that would attract the specific rent control legislation of the state (for example, the Maharashtra Rent Control Act for a Pune property). The Specific Relief Act, 1963, under Section 5, allows recovery of specific immovable property, and also restitution for sums wrongly withheld. The Consumer Protection Act, 2019 also covers deficiency in service by a broker, giving the tenant an option to approach the District Consumer Disputes Redressal Forum.

Jurisdiction — Where to File the Case

For recovery of the security deposit and brokerage, two forums are open. First, the civil court: where the property is situated, that is, Pune, will have territorial jurisdiction. Since the deposit is Rs. 60,000 and brokerage Rs. 15,000, the case falls well within the pecuniary jurisdiction of a Junior Civil Judge. Second, a consumer complaint can be filed before the District Consumer Forum if you argue that the broker’s services were deficient. The landlord-tenant dispute itself is between private parties, so the police station does not typically register an FIR unless there are elements of criminal intimidation or cheating. But if the landlord’s wife hurled threats, a complaint to the local police station under Section 351 BNS for criminal intimidation is possible, though this is not the primary remedy for the money.

Limitation Period

The Limitation Act, 1963 prescribes a three-year period for filing a suit to recover money or damages, and twelve years for specific performance of a contract. In this case, the limitation clock started on the date Suresh Patel refused to refund the brokerage, and when the landlord declared the deposit forfeited. Missing this three-year window can be fatal to your recovery claim, so it is critical not to delay. If you are slightly beyond the limitation, you can file an application for condonation of delay explaining the reasons, but it’s best to act well within time.

Interim Reliefs Available

While the civil suit is pending, you can seek interim reliefs to protect your interests. Under Order 39 Rule 1 and 2 of the Code of Civil Procedure, 1908, you can ask for a temporary injunction restraining the landlord from encashing the deposit or transferring the property to frustrate any decree. You can also move for attachment before judgment under Order 38 CPC if you can show that the landlord is about to dispose of assets to defeat the claim. Now, before you call your advocate, remember that these reliefs require a strong prima facie case and balance of convenience in your favour, which a well-documented file easily establishes. In many tenancy disputes, a strategically obtained status quo order from the court forces the opposite party to enter settlement talks on favourable terms.

If You Are the Victim

• Do not vacate the premises abruptly under threat. Stay or negotiate a proper exit with a written undertaking about deposit refund.
• Collect all written communication—WhatsApp chats, emails, and call recordings—immediately.
• Send a legal notice through an advocate, specifically detailing the arbitrary forfeiture and the broker’s refusal.
• File a complaint with the local police if the landlord or their family members use abusive language or threats; this creates a record and often de-escalates the situation.
• Approach the District Consumer Forum for deficiency in service against the broker, which is generally faster than a civil suit.

Documents You Must Keep Ready

• Copy of the leave and licence agreement (or rental agreement).
• Receipts for security deposit payment and monthly rent transfers (bank statements, UPI screenshots).
• Broker’s receipt for the Rs. 15,000 brokerage, along with proof of the promise to renew.
• Screenshots of all WhatsApp conversations with both brokers and the landlord.
• Any photographs of the apartment that show the two workstations or the presence of a second occupant (this can be used defensively to prove the landlord knew or acquiesced).
• Aadhaar card and PAN card of the tenant.
• Written note or diary entry detailing the inspection dates and the wife’s outburst.
• Call recordings, if any, of the broker or landlord admitting knowledge of the arrangement.

What Evidence Is Required?

• Admission by the broker Ramesh Joshi that he knew about the couple—captured in a text or recording, if possible.
• The leave and licence agreement itself, to show the deposit amount and that no clause prohibited an unmarried partner from staying.
• Bank statements showing the deposit and rent payments, proving the financial aspects.
• Witness testimony from a neighbour or building security who saw both Meera and Arjun living there regularly, which counters any claim of clandestine occupation.
• The broker Suresh Patel’s refusal to refund the brokerage in writing, or a voice note, establishing the breach.
• Screenshots of the original discussion with Ramesh Joshi from the time of the first rental, proving the arrangement was known.
• Any police complaint or GD entry made if the situation turned abusive—this provides contemporaneous record.

How Courts Typically Approach Such Cases

Civil courts in tenancy matters look first at the written contract. If the agreement does not expressly prohibit a partner’s cohabitation, the court is unlikely to uphold the deposit forfeiture. Judges are also conscious of the Supreme Court’s repeated reaffirmation of the right to choose a partner as part of personal liberty under Article 21. So, the landlord’s moral objection holds no water. On the broker’s fee, courts apply a straightforward principle: no performance, no fee. The moment Suresh Patel could not deliver the renewal, he became liable to refund the Rs. 15,000. Consumer forums are particularly strict about brokers charging for services not rendered, and a complaint there often resolves in a few hearings rather than a prolonged civil trial.

Timeline of Legal Process

• Legal Notice: Drafted and dispatched within 1–2 days. The opposite party is typically given 15 days to respond.
• Consumer Complaint: Filing takes about a week; the first hearing is usually within 3–8 weeks, and the entire dispute can be resolved in 6–12 months.
• Civil Suit: Plaint filed → summons issued (2–4 weeks) → written statement by defendant (30–90 days) → framing of issues (another 4–8 weeks) → plaintiff’s evidence (3–6 months) → defendant’s evidence (similar) → final arguments → judgment. Total duration around 2–3 years in a typical District Court.
• Execution: If the decree is not complied with voluntarily, execution proceedings add another 3–6 months.
• Appeal: Either side can appeal, which can extend the matter by another 1–2 years.

Understanding the Costs

The total cost of a matter like this varies significantly from one case to the next — it depends on the complexity of the dispute, the forum involved, the number of hearings, and the specific facts of your situation. There is no single fixed figure that applies to everyone.

A professional advocate can give you an accurate estimate only after reviewing all your facts and documents in a consultation.

Can the Matter Be Settled Out of Court?

Yes, and in fact most tenancy disputes end in settlement. A carefully drafted legal notice often prompts the landlord and broker to backtrack, realising they have no legal defence. Mediation can be a civilised and swift route: the court can refer the parties to mediation under Section 89 of the Code of Civil Procedure, where a neutral mediator helps negotiate a middle ground—maybe a partial refund of the deposit and full brokerage refund. Pre-litigation Lok Adalat is another option for pending cases, but for a pre-litigation matter, you can directly approach the authority with a joint settlement petition. Settlements save time, preserve relationships, and eliminate the uncertainty of a trial. But never agree to a settlement that waives your core rights just to avoid conflict; let your advocate evaluate the terms.

Common Mistakes People Make

• Paying a broker in full before the service is rendered. Always structure brokerage payment in milestones, with the bulk payable only after the agreement is signed.
• Not documenting the broker’s promise in writing. A WhatsApp message or an email acknowledging the renewal arrangement is worth its weight in gold.
• Vacating the premises in a panic without recovering the deposit, then struggling to enforce rights later.
• Relying on verbal assurances from the landlord or broker and not sending a timely legal notice, which often lets the limitation period slip by.
• Engaging a lawyer who does not regularly handle tenancy and contract recovery matters. Domain-specific experience matters enormously: an advocate familiar with these disputes knows exactly how to frame the breach, what interim reliefs to seek, and which forum will give the quickest result—mistakes on any of these can weaken the case irreparably.
• Posting about the dispute on social media while it’s still alive, which can backfire and be used to allege defamation or harassment.

FAQs People Normally Have

Can a landlord charge extra rent because my partner stays with me? Not unless the agreement specifically restricts the number of occupants or prohibits cohabitation by an unmarried couple, and such a restriction is not hit by the fundamental right to privacy. Even then, the penalty cannot be unilaterally imposed; it must be reasonable and previously agreed.

Is the broker entitled to keep the brokerage if the renewal didn’t happen? No. If Suresh Patel had a single task—getting the licence renewed—and failed to secure it, he must return the full Rs. 15,000. You can recover it through a consumer complaint or a summary civil suit under Order 37 CPC.

What if the landlord refuses to return the deposit even after I leave on time and without damages? You file a suit for recovery. The court will examine the condition of the premises and any actual damages. A blanket forfeiture is not permissible, and you’ll likely get most of it back with interest.

Can the police arrest me for not paying the extra charge demanded by the wife? Absolutely not. There is no criminal offence of “having a live-in partner.” The police may try to mediate based on the landlord’s complaint, but they cannot register an FIR or arrest you on these facts alone.

Does a leave and licence agreement need to be registered if it’s for 11 months? No. Under Section 17 of the Registration Act, an agreement for a term not exceeding 11 months does not require compulsory registration. Keep this unregistered agreement safe; it is still a legally enforceable contract.

This article is general legal information, not legal advice. Consult a qualified advocate about your specific situation.

Advocate Sudhir Rao, Supreme Court of India