Chapter II- Rent, Section 16 - Deposit of rent by tenant

1. If the landlord does not accept any rent and other charges tendered by the tenant as mentioned in section 15,  or fails to deliver a receipt referred to therein, or where there is a bona fide doubt as to the person or persons to whom the rent and other charges are payable, the tenant may deposit such rent and other charges with the Rent Authority in the prescribed manner. If there is a bona fide doubt about the person or persons to whom the rent and other charges are payable, the tenant may remit such rent and other charges to the Rent Authority by postal money order.

2. The deposit has to be accompanied by an application by the tenant containing the following particulars:

(a) the premises for which the rent and other charges are deposited with a description sufficient for identifying the premises;

(b) the period for which the rent and other charges are deposited;

(c) the name and address of the landlord or the person or persons claiming to be entitled to such rent and other charges payable;

(d) the reasons and circumstances for which the application for depositing the rent and other charges payable is made;

(e) such other particulars as may be prescribed.

3. On deposit of the rent and other charges, the Rent Authority sends in the prescribed manner a copy of the application to the landlord or the persons claiming to be entitled to the rent and other charges with an endorsement of the date of the deposit.

4. If an application is made for the withdrawal of any deposit of rent and other charges, the Rent Authority, if satisfied that the applicant is the person entitled to receive the rent and other charges deposited, orders the amount of the rent and other charges to be paid to him in the manner prescribed.

5. At the time of filing the application under sub-section (4) but not after the expiry of thirty days from receiving the notice of deposit, the landlord or the person or persons claiming to be entitled to the rent and other charges may complain to the Rent Authority that the statements in the tenant’s application of the reasons and circumstances which led him to deposit the rent and other charges payable are untrue. In such a case, the Rent Authority gives the tenant an opportunity of being heard. If it finds that the complaint is factual, it may levy on the tenant a fine which may extend to an amount equal to two months’ rent. It may also order that a sum out of the fine be paid to the landlord as compensation.

6. The Rent Authority may, on the complaint of the tenant and after giving an opportunity to the landlord of being heard, levy on the landlord a fine which may extend to an amount equal to two months’ rent. This is provided the Rent Authority is satisfied that the landlord, without any reasonable cause, refused to accept rent and other charges. The Authority may further order that sum of fine be paid to the tenant as compensation.