Lawfarm Team
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Asked May 20, 2016

How to recover security amount?

  • 1 Answer

Sarada Group took over my bike dealership but they are not returning my security amount. What do I do?

Answer 1

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Saurabh Kumar
A security deposit, is usually the money aside from the payment of rent that a landlord requires a tenant to pay to be kept separately in a fund for use should the tenant cause damage to the premises or otherwise violate terms of the lease.   In this case, if the security deposit was with the Sarada group or any other landlord, the best solution would be for him to issue a legal  notice to the person/ party in question.  A legal notice is a formal communication to a person or entity informing him that you intend to undertake legal proceedings against him. It is a step taken before filing a suit, and is meant to warn the other party that legal action may be taken against him/her, if he/she fails to comply with some specified condition.   In the demands in your legal notice, the more options you give to the company, the better the chances of an out of court settlement. Be detailed about what it is that you are complaining about and what you expect the company to do. Be fair in your demands to the company. There is no prescribed format for the notice but you need legal proof of its delivery, so send it through speed post or registered post.   Give the company 15 to 45 days to comply with your demand. State that you will have no choice but to to take the dispute before a consumer forum if they don't cooperate.   If you do not get an adequate response to this legal notice, it means that the other party is not giving the dispute due attention.  Thus,you will have to file a a suit in an appropriate court. Since court proceedings are time taking and expensive, aggrieved persons prefer filing a legal notice first, so that they can have an out of court settlement, which is not time consuming and ensures that money lost is recovered.   File a complaint on a stamp paper with an affidavit, before the consumer court depending on the amount of claim you are making.  District forum if your claim is below Rs 20 lakh, State level if it is above Rs 20 lakh but below Rs 1 crore, or National Commission if it is above Rs 1 crore.   The complaint should be filed within two years from when you first had your grievance.   Collect as much documentary evidence as possible as you will need to attach copies of the evidence you have collected. to both the legal notice and then the legal suit. Ensure that you attach only photocopies of the documents and not the originals.        SOURCE- 1- 2-'s_service 3-  
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