Bhagwan v Shah
Last updated: February 7, 2026
Order
Ordered by Camille Tancioco,Tribunals Ontario under Section 21.2, Residential Tenancies Act, 2006
Decision in favor of
Tenant
Previous Order
Upheld
Dispute Categories
Notices Sent
Subsections of RTA Quoted
Agree with the ruling?
Citation: Bhagwan v Shah, 2025 ONLTB 74521
File Number: LTB-T-093891-24-RV
Timeline
Tenancy End Date
Nov 2023
Hearing Date
Jul 2025
Order Date
Sep 22, 2025
Decision
The Landlord's request for a review of the order LTB-T-093891-24 is denied. The Board confirmed that the Landlord cannot withhold mandatory compensation (initially agreed upon due to an N12 notice) to pay for alleged damages. The original order requiring the Landlord to pay the Tenant $2,650.00 remains in full force.
Dispute
The Landlord requested a review of an order dated September 8, 2025, which found the Landlord had illegally retained $2,650.00. This amount was intended as compensation related to an N12 Notice for personal use, though an N11 agreement was subsequently signed. The Landlord argued that they should be allowed to retain the money due to alleged damages caused by the Tenant and also disputed a finding regarding the last month's rent deposit. The LTB member conducted a preliminary review to determine if a serious error had occurred.
Determinations
- The original order did not require the Landlord to return the rent deposit, as it was correctly applied to the last month of occupancy.
- The Landlord admitted to retaining $2,650.00 intended as compensation because of alleged damages to the unit.
- A Landlord cannot circumvent the Act by signing an N11 agreement to avoid paying compensation related to an N12 purpose.
- Alleged damages are not a valid defense for retaining money illegally under Section 135.
- The Landlord failed to demonstrate a serious error in the original proceeding or order.
Landlord's Arguments
Arguments
The Landlord argued they were entitled to retain the compensation as a set-off for damages and claimed the LTB erred in its interpretation of Section 135.
Actions and Evidence
Landlord admitted to retaining the $2,650.00 'because the Tenant allegedly damaged the unit.' Landlord claimed the hearing member erred by not allowing this set-off.
Tenant's Arguments
Arguments
The Tenant argued that the $2,650.00 promised for vacating the unit was illegally withheld by the Landlord.
Actions and Evidence
Tenant applied for an order determining the Landlord collected or retained money illegally. Tenant moved out on November 14, 2023.
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