ATA Section 11 : Security Deposit

Explanation using Example

Example 1: Residential Premises Security Deposit

Introduction: Rina, a tenant, is renting a two-bedroom apartment in Guwahati, Assam. The monthly rent is INR 15,000. She is negotiating the terms of her tenancy agreement with her landlord, Mr. Sharma.

Application: According to Section 11(1)(a) of The Assam Tenancy Act, 2021, the security deposit for residential premises should not exceed two months' rent. Therefore, the maximum security deposit Rina can be asked to pay is INR 30,000 (2 x 15,000).

Outcome: If Mr. Sharma demands a security deposit of INR 45,000, it would be a violation of Section 11(1)(a). Rina can refuse to pay more than INR 30,000 and may seek legal recourse if pressured to pay more. Non-compliance by the landlord could lead to legal action, potentially involving penalties as per the Act.

Conclusion: Compliance with the security deposit limit ensures fair practice and protects tenants from excessive financial burdens. Rina's understanding of this provision helps her negotiate effectively and avoid overpayment.

Example 2: Non-Residential Premises Security Deposit

Introduction: Arjun plans to lease a commercial space in Dibrugarh, Assam, for his new restaurant. The agreed monthly rent is INR 50,000. He is finalizing the tenancy agreement with the property owner, Ms. Das.

Application: As per Section 11(1)(b) of The Assam Tenancy Act, 2021, the security deposit for non-residential premises should not exceed six months' rent. Therefore, the maximum security ...

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