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.
Rohan Gupta owned a newly constructed 2BHK flat in Gomti Nagar, Lucknow, which he rented out in early February 2024 to a family under a standard leave-and-licence agreement. The house was brand new at the time of handover — freshly painted, professionally cleaned, and documented with move-in photographs. About twelve months later, around 18 February 2025, the tenants vacated the property.
What Rohan found was troubling. The children in the family had drawn on multiple walls with crayons and sketch pens. Then the tenants had painted over those portions themselves using a mismatched shade, making everything look patchy and honestly worse than before. Two sections of plaster near the main bedroom door were chipped. And on top of all that, the wash area had been left with accumulated garbage and grime that needed a full professional clean-up.
Rohan deducted approximately Rs. 21,500 from the security deposit, based on Urban Company quotes for repainting and deep cleaning. The tenants demanded a full refund, turned aggressive, and eventually threatened legal action. He'd tried resolving it through mutual discussion and even sent a written explanation — but they wouldn't budge. He came to Advocate Sudhir Rao after those attempts failed, concerned about whether he had any legal exposure. After a thorough review of the rental agreement clauses, photographic evidence, and the deduction receipts, the matter was addressed with a structured legal response that gave Rohan a defensible, well-documented position that a more general approach simply hadn't been able to establish.
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.
Now, before you act, let me be direct: the single most important thing you can do is call a lawyer first. Not a friend. Not a property broker. A lawyer.
Document everything immediately: If you haven't already, take timestamped photographs of all damages — wall drawings, patchy paint, chipped plaster, and the state of the wash area. These photographs, ideally taken on the day of vacation, are your primary evidence. Pair them with before-and-after comparisons using your move-in documentation.
Keep your cost estimates on record: Quotes and invoices from Urban Company, HouseJoy, or any registered service provider for painting and cleaning constitute legitimate cost evidence. Courts and consumer forums both look at reasonableness of deductions — documented market-rate quotes help establish that. Frankly, a printout from the Urban Company app has saved more than one client of mine from a prolonged dispute.
Respond to legal threats in writing: Don't ignore the tenant's threat. Have your advocate draft a formal reply to their notice, clearly explaining the basis of each deduction and attaching supporting evidence. Silence can sometimes be misread as admission.
Tenancy disputes involving security deposit deductions sit at the intersection of contract law, property law, and civil procedure. An advocate who regularly handles residential tenancy matters will know how local rent courts and civil judges approach these questions — procedural missteps that a general practitioner might overlook can affect the outcome significantly.
Applicable Sections of Law
- Section 73, Indian Contract Act, 1872: Entitles a party to recover compensation for loss caused by breach of contract. A tenant's failure to return the property in the agreed condition constitutes a breach, and reasonable repair costs are recoverable.
- Section 108(o), Transfer of Property Act, 1882: Imposes a duty on the tenant to keep and return the property in the same condition as received, ordinary wear and tear excepted. Crayon drawings and self-patched paint are not ordinary wear and tear.
- Section 74, Indian Contract Act, 1872: Deals with pre-estimated damages or agreed deduction clauses in contracts — supports the landlord's right to deduct where the rental agreement expressly provides for it.
- Order 7, Rule 1, Code of Civil Procedure, 1908: Governs filing of a civil suit for recovery of money, applicable if either party decides to approach the civil court for resolution of the deposit dispute.
Jurisdiction — Where to File the Case
This is a civil tenancy dispute. The appropriate forum depends on the amount in question and the state. For claims below Rs. 1 lakh in most states, a Small Causes Court or a Munsiff Court has jurisdiction. For Uttar Pradesh (where Lucknow falls), rent disputes may also be raised before the Rent Control Tribunal under applicable state rent legislation. If the tenant files a consumer complaint alleging deficiency in service, the District Consumer Disputes Redressal Commission has jurisdiction. Territorial jurisdiction is determined by where the rented property is situated — in this case, Lucknow. And here's the thing: getting jurisdiction right from the start matters because a filing in the wrong court wastes time and can delay proceedings by months.
Limitation Period
Don't sit on this.
Under the Limitation Act, 1963, a suit for recovery of money based on a contract must be filed within three years from the date on which the cause of action arises — here, that would be from the date of vacation or from when the refund demand was refused. Missing this window can be fatal to the claim. Courts have condoned delays in exceptional circumstances under Section 5 of the Limitation Act, but such condonation is discretionary and not guaranteed. Both the landlord and the tenant must act within this period if they wish to pursue recovery through a civil court.
Interim Reliefs Available
In most security deposit disputes of this nature, the amounts involved are modest and the primary remedy is monetary recovery rather than injunctive relief. But if the tenant files a suit seeking return of the deposit and there's a risk that the landlord may dissipate assets, the tenant can apply for an attachment before judgment under Order 38, Rule 5 of the Code of Civil Procedure, 1908. Conversely, if the landlord has a counterclaim for damages beyond the deposit amount, an interim application under Order 39, Rule 1 CPC can restrain the tenant from further interference with the property pending adjudication. In practice, courts issue status quo orders fairly readily in property-related disputes when prima facie case and balance of convenience are shown.
If You Are the Victim
- Send a formal legal notice: Through your advocate, send a notice under Section 80 CPC (if applicable) or a general demand notice explaining the basis of deductions and inviting the tenant to respond within 15 days.
- Preserve all evidence: Do not repaint or clean the property before you have thoroughly documented the damage — photographs, videos, and written estimates all need to precede remediation.
- Check your rental agreement: Review whether the agreement contains an explicit clause permitting deductions for damage repair and cleaning. Even an unregistered agreement is admissible as evidence of terms in civil proceedings.
- Respond to any consumer complaint promptly: If the tenant approaches the District Consumer Disputes Redressal Commission, your documented reply with evidence must be filed on time or the commission may proceed ex parte.
- Do not negotiate out of fear: A legal threat is not the same as a valid legal claim. Have your advocate assess the actual merits of any notice before agreeing to refund anything beyond what is genuinely owed.
Documents You Must Keep Ready
- Copy of the rental or leave-and-licence agreement (even if unregistered)
- Move-in and move-out photographs with timestamps
- Security deposit receipt and bank transaction records
- Quotations and invoices from cleaning and painting service providers (e.g., Urban Company, HouseJoy)
- WhatsApp or email correspondence with the tenant regarding the deductions
- Written deduction breakdown provided to the tenant
- Aadhaar and PAN of the landlord (for identity in proceedings)
- Any acknowledgement or complaint from the tenant in writing
What Evidence Is Required?
- Photographic evidence: Timestamped before-and-after photographs of the walls, damaged plaster, and the wash area are primary evidence of the damage caused.
- Rental agreement: The written agreement — even if unregistered — establishes the terms under which deductions were permitted. Under Section 91 of the Indian Evidence Act, 1872, oral evidence cannot contradict a written contract.
- Service provider invoices: Receipts from cleaning and painting professionals establish the reasonableness of the deduction amount claimed.
- Written communication trail: Messages, emails, or letters between landlord and tenant regarding the deposit and deductions establish the sequence of events and the parties' positions.
- Move-in documentation: Any checklist, photographs, or written record confirming the condition of the property at the time of handover — this counters any claim by the tenant that the damage pre-existed.
- Witness evidence: Testimony from a neighbour, building security guard, or property manager who can corroborate the condition of the flat can strengthen the landlord's case as secondary evidence.
How Courts Typically Approach Such Cases
Civil courts in India take a practical view of tenancy damage disputes. The burden lies on the landlord to show that the damage was caused during the tenancy and goes beyond normal wear and tear — as established in principles drawn from Section 108(o) of the Transfer of Property Act, 1882. Courts examine whether the deduction was proportionate, whether the tenant was informed, and whether the rental agreement authorised such deduction. Make no mistake, judges look unfavourably at deductions that are vague, unsubstantiated, or disproportionate. Conversely, well-documented deductions backed by photographic evidence and third-party invoices generally stand up to scrutiny. The credibility of both parties is weighed carefully.
Timeline of Legal Process
- Legal notice (Week 1-2): Advocate drafts and sends a formal notice to the tenant explaining the deductions and inviting settlement.
- Response or non-response (Week 3-4): Tenant either replies, seeks negotiation, or ignores the notice.
- Filing of plaint (Month 1-2): If unresolved, the aggrieved party files a civil suit or consumer complaint. Plaint is drafted, court fee paid, and filing is done.
- Summons and written statement (Month 2-4): Court issues summons to the opposite party, who files a written statement in response.
- Issues framed (Month 4-6): Court frames the specific questions of fact and law to be decided.
- Evidence stage (Month 6-18): Both parties lead documentary and oral evidence; cross-examination takes place.
- Arguments (Month 18-24): Final arguments submitted before the court.
- Judgment and decree (Month 24-30): Court delivers judgment; if recovery is ordered, execution proceedings may follow.
- Appeal (if any): Either party may appeal to a higher court, adding further time.
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 disputes of this size, settlement is usually the most practical route. Under Section 89 of the Code of Civil Procedure, 1908, courts are empowered to refer disputes to mediation, conciliation, or Lok Adalat. Pre-litigation Lok Adalat is also available for parties who haven't yet filed a suit — these are conducted by the District Legal Services Authority and result in awards that are deemed decrees of a civil court, carrying no court fee. A mediation session with a neutral third party can often resolve deposit disputes in a single sitting. Where the landlord has solid documentation and the deduction is reasonable, an early settlement offer framed by an advocate tends to produce quick and workable outcomes for both sides.
Common Mistakes People Make
- Repainting or cleaning before documenting: Many landlords fix the damage first and then try to claim it — without photographs or invoices taken before remediation, the evidence base is seriously weakened.
- Not having a deduction clause in the agreement: An oral understanding is very difficult to enforce. If the rental agreement doesn't explicitly permit deductions for cleaning and damage repair, the landlord's position becomes legally vulnerable.
Advocate Sudhir Rao, Supreme Court of India