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Return of token amount from owner after renting property to others
14-Jul-2026 (In Landlord/Tenant Law)
I paid a huge token amount to owners account to book a flat through broker. The broker could not arrange flatmates within 15 days & backed out, after which I started coordinating directly with owner.
I was ready to proceed with rental and was arranging flatmates as the owner didn’t allow a single-person occupancy. However, the owner rented the flat to someone else without informing me and is now refusing to return my token amount.
Document does not state that the token amount is non-refundable
Legally, you have a strong case for recovery of your token amount, since the owner has breached the implied agreement by renting the flat to someone else while you were still willing to proceed and were actively arranging flatmates as per his own condition.
Key points in your favour:
No forfeiture clause: Since the document does not mention that the token amount is non-refundable, the owner cannot claim to retain it. In absence of such a clause, forfeiture amounts to unjust enrichment, which is not permissible under law (Section 74 of Indian Contract Act deals with forfeiture only when specifically agreed).
Breach by Owner, not You: You were not the defaulting party — the owner unilaterally rented out the flat without informing you or giving you an opportunity to complete the arrangement. This is a clear breach of trust/agreement on his part.
Legal Remedy: You should first send a Legal Notice through an advocate demanding refund of the token amount within 15 days, citing breach of agreement and unjust enrichment.
If No Response: You can file a Civil Suit for Recovery of Money in the appropriate Civil Court, or approach Consumer Forum if any service deficiency is involved, or even file a Police Complaint u/s 420 IPC (cheating) if there's intent to deceive.
Keep all payment proofs, chat records, and the booking document safe—they'll strengthen your case significantly
Helpful?
Adv. Neha Gupta
Kurukshetra | 100+ Answers
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Hello
I advise you to immediately issue a legal notice to the owner demanding refund of the entire token amount along with interest. Since there is no clause in the booking document making the token amount non-refundable and the owner rented the flat to another person despite your willingness to proceed, the forfeiture is legally unsustainable. If the amount is not refunded within the stipulated time, you may initiate appropriate civil proceedings for recovery along with interest and costs.
Helpful?
Adv. Sumegh Garg
Gurgaon / Gurugram | 100+ Answers
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Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.
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