The obligation of the tenant to refund the security deposit contemporaneous to vacating the premises as per the terms of the lease agreement and the Deposit Agreement.

1. The appellant-landlady is aggrieved by the judgment dated 30th July, 2015 passed by the Division Bench¹ [D.B. Civil Special Appeal (Writ) No. 332 of 2012] as also the order dated 09th January, 2012 passed by the learned Single Judge in a writ petition² [S.B. Civil Writ Petition No. 8464 of 2009] filed before the High Court of Judicature for Rajasthan at Jaipur Bench, preferred by her under Article 227 of the Constitution of India.

2. The facts of the case reveal that the appellant-owner of a commercial premises at Vashistha Marg, Raja Park, Jaipur had leased out a part of the said premises³ [Shop No. 485 and basement] to the respondent-Bank for a period of nine years in terms of the lease agreement dated 13th October, 2000, executed between the parties. The relevant clauses of the said lease agreement are reproduced herein-below:

“LESSEE'S COVENANTS:

2 (j) On the expiry of the said period of the lease or any renewal thereof, the Lessee shall deliver the demised premises in such order and condition as in consistent with the terms, covenants and conditions on the part of the Lessee herein contained (save and except damage to the demised premises by the fire unless the fire has occurred due to negligence of the Lessee), riots, earthquake, storm, war, civil commotion, acts of God and other conditions over which the Lessee shall have no control) SUBJECT ALWAYS to what is stated hereinafter.

ASSIGNMENT/TERMINATION/RENEWAL

6 (a) The Lessee shall be entitle to assign or sub-let or otherwise allow use and occupation of the demised premises or any part thereof to its business associates, affiliate companies but not beyond the tenure of this lease or renewal thereof (if any), as mentioned hereunder.

(b) Notwithstanding anything contained herein, the Lessee shall always be entitled, without assigning any reason, to terminate this lease at any time before the expiry of the tenure of this lease or any renewal period (if any) thereof, by giving to the Lessor three months’ prior notice in writing.”

3. In terms of the lease agreement, the agreed monthly rent of the premises was fixed at Rs. 28,625/- (Rupees Twenty eight thousand six hundred twenty five only). Vide letter dated 10th May, 2004, the respondent-Bank terminated the lease agreement by issuing a three months’ notice in terms of clause 6 thereof. The said notice period was made effective from 16th August, 2004.

4. It is the version of the appellant-landlady that the respondent-Bank did not hand over the vacant and peaceful possession of the leased premises to her and instead, continued occupying the subject premises upto 18th June, 2006, when the keys were finally handed over to her. It is also the stand of the appellant-landlady that the respondent-Bank did not pay her the use and occupation charges in respect of the subject premises from 16th August, 2004 till 20th February, 2006, after adjusting the security deposit of Rs. 85,875/- (Rupees Eighty five thousand eight hundred seventy five only) towards the rent payable for three months.

5. Aggrieved by the non-payment of rent by the respondent-Bank, the appellant filed an application before the Rent Tribunal, Jaipur City, Jaipur on 20th February, 2006 seeking eviction and recovery of the arrears of rent. It was after institution of the aforesaid petition by the appellant-landlady that the respondent-Bank handed over the keys of the premises to her before the Presiding Officer of the Rent Control Tribunal on 18th June, 2006. The petition filed by the appellant-landlady was contested to the hilt by the respondent-Bank who also filed a counter claim seeking refund of the security amount along with interest @ 24% per annum compounded quarterly, w.e.f. 17th August, 2004, till realization. Vide judgment dated 10th April, 2008, the rent application filed by the appellant-landlady was decreed in her favour and the counter claim filed by the respondent-Bank was rejected.

6. Aggrieved by the aforesaid decision, the respondent-Bank filed an appeal bef