Rights of lessee

1. Right to enjoy the accretions to the leased property: If during the continuance of

the lease, any ​accession is made to property, such accession is deemed to be

comprised in lease. ​S 108(d)

2. Right to avoid lease on destruction of the property: If by fire, tempest or flood, or

violence of an army or of mob or other irresistible force, any material part of the

property is wholly ​destroyed or rendered substantially and ​permanently unfit for

the purpose for which it was let,at the option of the lessee,the lease becomes

void​.(However,if injury is occasioned by the wrongful act or default of lessee,he is

not entitled to avail himself of this benefit). ​S 108(e)

3. Right to repair property and deduct the cost from rent: If the lessor neglects to

make within a reasonable time after notice, any repairs which he is bound to

make to the property, the lessee may make the same himself, and ​deduct the

expense of such repairs with interest from rent or otherwise ​recover it from the

lessor. ​S 108(f)

Lessors’ obligation to repair the premises overrides lessee’s right for quite

enjoyment.

Villabai Ammal v. Radha Krishna (1986)

➔ Electric wiring and maintenance on lessor
➔ Guest dies because of electric shock
➔ The Lessor is liable.

4. Right to make obligatory payment and recover: If the lessor ​neglects to make any

payment which he is bound to make,and which,if not made by him,is recoverable

 from the lessee or against the property,the lessee may make such payment

himself and ​deduct ​it with interest from rent or otherwise ​recover it from the

lessor. ​S 108(g)

E.g.​ Municipal Taxes, revenues etc.

5. Right to remove the fixtures made during tenancy: the lessee may even ​after the

termination of the lease, remove at any time ​whilst he is in possession of the

property leased, all things which he has ​attached to the earth, provided he leaves

the property in the state in which he received it. ​S 108(h)

6. Right to hace benefit of crop planted by him: When a lease of an ​uncertain

duration determines by any means except due to fault of lessee,he or his legal

representative is entitled to all the ​crops planted or sown by the lessee and

growing upon the property when the lease determines, and to ​free ingress and

egress to gather and carry them. ​S 108(i)

7. Right to sub-let the property: The lessee may transfer absolutely or by way of

mortgage or sub-lease​,the whole or any part of his interest in the property and

any transferee of such interest or part may again transfer it. In such a case the

lessee does not by reason only of such transfer cease to be subject to any of the

liabilities attaching to the lease. ​S 108(j)

Exception: ​tenant having an untransferable right of occupancy, ​farmer of an

estate in respect of which default has been made in paying revenue, lessee of an

estate under the management of a ​Court of Wards

Liabilities of lessee

1. Duty to disclose facts materially increases the value of Property: the lessee must

disclose ​to the lessor any fact which materially increases the value of such

interest. ​S 108(k)

2. Duty to pay rents: the lessee must pay the ​premium and rent to the lessor at the

proper time and place. ​S 108(l)

3. Duty to maintain property: The lessee must keep the property in good condition​.

(reasonable wear and tear excepted). Restore property on termination. 3 month

notice if defect is acknowledged by the lessor. ​S 108(m)

4. Duty to give notice of encroachment: If the lessee becomes aware of any

recovery proceeding, encroachment or inference in lessor’s right ​on the property

or any proceeding to recover the property, he must ​inform the lessor about the

same with reasonable diligence. ​S 108(n)

5. Duty to use property reasonably: ​The lessee must use the property as a man of

ordinary prudence would use his own, but he cannot use it for any other purpose

or commit any act which may destroy or permanently injure the property. ​S

108(o)

6. Duty not to erect permanent structure: Without the lessor's consent, the lessee

can not erect any​ permanent structure ​on the property.

Exception:​ ​agricultural purpose​. ​S 108(p)

7. Duty to restore the possession: When the lease is over, the lessee must put the

lessor in possession of the property. ​S 108(q)

P. S. Bedi v. Project & equipment corp. Of India (1994)

 ➔ Tenant did not vacate the property even after termination of lease by efflux
of time.
➔ Liable to pay damage and mesne profit to the lessor.

Determination of lease

A lease terminates in eight ways:

1. By efflux of time:​ lapse of lease deed time period. ​S 111 (a)

2. By happening of a specific event​: If the duration of the lease is until the

happening of some event-when that event happens. ​S 111 (b)

E.g. if a lease is for twenty years and at the same time made conditional upon life

of lessee, the lease terminates on the death lessee, even if death of lessee takes

place within stipulated period of twenty years; if the lessee does not die within

this period lease terminates at the end of the period.

3. By termination of lessor’s interest: If the lessor's interest in the property is to

terminate on the happening of some event- when that event happens. ​S 111 (c)

This clause operates in cases where the lessor has only limited interest or limited

power to grant a lease.

E.g. a lease by hindu widow who is entitled only to a life-estate terminates on her

death.

4. By Merger:​ ​S 111 (d)

Nemo potest tenens et deminus: nobody can be both, land-lord and tenant of the

same property.

Merger may take place either by act of parties (sale, gift) or by operation of law

(succession, decree of court).

 Ramesh Kumar Jhambh v. Official Assignee, High Court Bombay (1993)
➔ The doctrine of merger is based on the principle of union of two
conflicting interests which cannot be held by one person at the
same time.
➔ Therefore, the leasehold rights in favour of the appellants stand
extinguished;

5. By express surrender by lessee.​ ​S 111 (e)

6. By implied surrender by lessee: ​if a lessee accepts from his lessor a new lease of

leased property to take effect during the continuance of existing lease, this is an

implied surrender of former lease, and such lease terminates thereupon. ​S 111

(f)

a. By creation of a new lease;

b. By relinquishment of possession.

P.M.C. Kunhiraman Nair v. C.R. Nagaratha Iyer, AIR 1993

➔ if the lessor grants a new lease to a third person with the assent of
the lessee
➔ the leasee delivered the possession to third and directed his
sub-tenant to pay the rent directly to the lessor.
➔ Since the lessee had by executing the agreement impliedly
surrendered their leasehold rights, he is no longer lessees;

7. By forfeiture: loss of lessee’s right to use the property by spome fault on his part

S 111 (g)​:

a. Breach of express condition by lessee

i. Express condition laid down by lessor

ii. The lessor’s right to resume possession upon breach of condition.

Reghuram Rao v. Eric P. Mathias (2002)

➔ Condition must be express and clear
 ➔ Condition: lessee can not alinate or sub-let property
(condition is vaild)
➔ Held: in absence of right to re-entry, section 111(g)
cannot be applicable.

b. Denial of landlord’s title: either assume himself as owner or recognize any

other person as owner.

Palani Ammal v. Vishswanatha Chettiar (1998)

➔ Tenant denying the title of ownership is not entitled to
protection under Madras city tenants protection act, 1922

Lahu V. Kailash Matasaran Gupta (2014)

➔ Sale of leased property
➔ Tenet denied the title of the new landlord
➔ Determination of lease by forfeiture held proper.

c. Insolvency of the lessee: lease does not terminate ​ipso facto.​ Written

notice is required to terminate lease.

8. By expiry of notice to quit: on the expiry of a notice to terminate the lease,or to

quit (or of intention to quit) the property leased duly given by one party to the

other. ​S 111 (h)

A valid notice must satisfy the following three requisites Viz-

1. It must expressly ​convey the intention​ to terminate the tenancy.

2. It must ​specify the date​ on which the tenancy is to expire.

3. It must be ​unconditional​. Thus a notice given by a tenant that he will quit

when he gets another suitable accommodation is not valid.

112. Waiver of forfeiture​: A forfeiture under Section 111, clause (g), is waived by

acceptance of rent which has become due since the forfeiture, or ​by distress for such

rent(seize a tenant's goods to secure payment of rent arrears), or by any ​other act on

the part of the lessor showing an ​intention to treat the lease as subsisting​:

Provided that the ​lessor is aware ​that the forfeiture has been incurred:

Provided also that, where ​rent is accepted ​after the institution of a suit to eject the

lessee on the ground of forfeiture, such acceptance is not a waiver.

114. Relief against forfeiture for non-payment of rent: Where a lease of immovable

property has determined by ​forfeiture for non-payment of rent​, and the ​lessor sues to

eject the lessee, if, at the hearing of the suit​, the ​lessee pays or tenders to the lessor the

rent in arrear​, together ​with interest thereon and his ​full costs of the suit, or gives such

security ​as the Court thinks sufficient for making such payment ​within fifteen days​, the

Court may, in lieu of making a decree for ejectment, pass an order relieving the lessee

against the forfeiture; and thereupon the lessee shall hold the property leased as if the

forfeiture had not occurred.

Prithvi Chand Ramchand Sablok v. S.Y. Shinde (1993)

➔ The right of the landlord to get the tenant evicted is restricted under the
Rent Act.
➔ As the law restricts the power of the landlord to evict the tenant except in
accordance with the provisions of Rent Act section 114 is not attracted.
➔ Once the requirements of Rent legislation are satisfied, the tenant cannot
claim the double protection of invoking the provision of Transfer of
Property Act
114-A. Relief against forfeiture in certain other cases: Where a lease of immovable

property has determined by ​forfeiture for a breach of an express condition which

provides that on breach thereof the lessor may re-enter, ​no suit for ejectment shall lie

unless and until the lessor has served on the lessee a ​notice in writing​:

A. specifying the particular ​breach ​complained of; and

B. if the breach is capable of ​remedy​, requiring the lessee to remedy the breach;

and the l​essee fails​, within a reasonable time from the date of the service of the notice,

to​ remedy the breach​, if it is capable of remedy.

Nothing in this section shall apply to an express condition against ​assigning​, ​under-

letting​, ​parting with the possession​, or ​disposing​, of the property leased, or to an

express condition relating to forfeiture in case of ​non-payment of rent​.

Added by Amendment Act, 1929.

Ramesh Prasad v. State of Bihar (2008)

➔ If breach is remediable, an opportunity should be given to the lessee to
make use of his remedy before ordering of forfeiture.