If TDS is told about the deposit dispute, we have to tell the deposit holder to send the disputed
deposit to us within 10 days, if we have not already received it. Once the dispute process has been started, the Housing Act obliges us to hold the disputed deposit until the dispute is resolved,even if we are not carrying out the dispute resolution itself. We will then either:
• adjudicate on the dispute, where we are able to; or
• pay out the disputed deposit in accordance with an agreement reached between the landlord and tenant; or
• where TDS has been told by one party that they intend to go to Court, wait to see a
suitable Court order which sets out how the deposit should be paid.
For more information please click on https://www.tenancydepositscheme.com/wp-content/uploads/2017/06/What_happens_when_the_court_is_involved_in_a_tenancy_deposit_dispute_Jan_2021.pdf