A recent ruling by the Delhi High Court highlighted how crucial it is for tenants to maintain a proper paper trail so they can defend their position in any case of disputes in the future regarding the security amount or rent. In this case, Mr Mendiratta, a tenant from Tilak Nagar, New Delhi, took a 238.38 sq. ft shop on rent for Rs 25,500 per month in 2014 from Janakpuri’s Mr and Mrs Chawla. However, the rent agreement was unregistered and had a term of 11 months.
Moreover, Mendiratta (the tenant) claimed that between November 2016 and March 2017, he gave Rs 10 lakh in cash to the Chawlas (landlords) as security deposit; however, there was no paper trail or receipt or anything to show this cash.
