Chapter III DEPOSIT OF RENT

Deposit of rent and other charges by the tenant.-

1. (1) Where the landlord does not accept any rent and other charges tendered by the tenant within the time and the manner referred to in section 16 or refuses or neglects to deliver a receipt referred to therein, or where there is a bonafide 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 Controller in the prescribed manner.
2. (2) The deposit shall be accompanied by an application by the tenant containing the following particulars, namely:-
   • (a) the premises for which the rent and other charges 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;
   • (d) the reasons and circumstance for which the application for depositing the rent is made;
   • (e) such other particulars as may be prescribed.
3. (3) On deposit of the rent and other charges being made, the Controller shall send, in the prescribed manner, a copy of the application to the landlord or persons claiming to be entitled to the rent and other charges with an endorsement of the date of the deposit.
4. (4) If an application is made for the withdrawal of any deposit of rent and other charges, the Controller shall, if satisfied that the applicant is the person entitled to receive the rent and other charges deposited, order the amount of the rent and other charges to be paid to him in the manner prescribed: Provided that no order for payment of any deposit of rent and other charges shall be made by the Controller under this sub-section without giving all persons named by the tenant in his application under sub-section
5. (2) as claiming to be entitled to payment of such rent and other charges an opportunity of being heard and such order shall be without prejudice to the rights of such persons to receive such rent and other charges being decided by a court of competent jurisdiction.
6. (5) If, 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 complains or complain to the Controller that the statements in the tenant’s application of the reasons and circumstances which led him to deposit the rent and other charges are untrue, the Controller, after giving the tenant an opportunity of being heard, may levy on the tenant a fine which may extend to an amount equal to two months rent and other charges, if the Controller is satisfied that the said statements were materially untrue and may order that the fine realised or any part thereof be paid to the landlord as compensation.
7. (6) The Controller may, on the complaint of the tenant and after giving an opportunity of being heard, to the land lord levy on the landlord a penalty which may extend to an amount equal to two months rent, if the Controller is satisfied that the landlord, without any reasonable cause, refused to accept rent though tendered to him within the time referred to in sub-section
8. (1) of section 16 and may further order that the penalty realised or any part thereof be paid to the tenant as compensation.

Time limit for making deposit and consequence of incorrect particulars in application for deposit.-

1. (1) No rent and other charges deposited under section 17 shall be considered to have been validly deposited under that section, unless the deposit is made within twenty-one days of the time referred to in section 16 for payment of the rent and other charges.
2. (2) No such deposit shall be considered to be validly made, if the tenant wilfully makes any false statement in his application for depositing the rent and other charges, unless the landlord has withdrawn the amount deposited before the date of filing an application for the recovery of possession of the premises from the tenant.
3. (3) If the rent and other charges is deposited within the time mentioned in sub-section
4. (1) and does not cease to be a valid deposit for the reason mentioned in sub-section (2), the deposit shall constitute payment of rent and other charges to the landlord, as if the amount deposited had been validly tendered.

Saving as to acceptance of rent and other charges and forfeiture of rent in deposit.-

1. (1) The withdrawal of rent and other charges deposited under section 17 in the manner provided therein shall not operate as an admission against the person with-drawing of the correctness of the rate of rent and other charges, the period of default, the amount due, or of any other facts stated in the tenant’s application for depositing the rent and other charges under the said section.
2. (2) Any rent and other charges in deposit which is not withdrawn by the landlord or by the person or persons entitled to receive such rent shall except in cases where there is bonafide dispute of title be forfeited to Government by an order made by the Controller, if it is not withdrawn before the expiration of five years from the date of posting of the notice of deposit.
3. (3) Before passing an order of forfeiture, the controller shall give notice to the landlord or the person or persons entitled to receive the rent and other charges in deposit by registered post at the last known address of such landlord or person or persons and shall also publish the notice in his office and in any local newspaper.