Security deposit - Indian Laws - General

Security deposit Black s Law dictionary Bryan A Garner, Black s Law Dictionary (11 ed. Thomson Reuters ). defines security deposit as money deposited by a tenant with a landlord as security for full and faithful performance by the tenant of terms of leases, including damages to premises. It is refundable unless the tenant has caused damage or injury to the property or has breached the terms of tenancy or the laws governing the tenancy. Certain states also require the landlord to make a security deposit to cover essential repairs required on rental property. A similar phrase, Client Security Fund is defined as a fund set up by many State Bar Associations to cover losses incurred by persons as a result of dishonest conduct of member-attorneys. The meanings of both these phrases suggest the necessary ingredients of a security deposit , which are: (i) An advance to ensure faithful performance of the contract; (ii) A payment to cover essential functions for performance; and (iii) The entitlement to refund being dependent upon whether damage, injury and default are occasioned. THE STATE OF MAHARASHTRA VERSUS 63 MOONS TECHNOLOGIES LTD. - 2022 (2) TMI 1348 - SUPREME COURT