TRANSFER OF PROPERTY ACT

THE LAW OF LEASE IN INDIA

SUBMITTED BY:-

 SUDHANSHU SINGH |SAP ID:81022019473

 FATEMA LOKHANDWALA |SAP ID:81022019515
 SAUNAK ASH |SAP ID :81022019226
3RD YEAR, B.B.A. LLB (HONS.)

SEMESTER V

DATE OF SUBMISSION:-

30th September 2022

SUBMITTED TO:

PROFESSOR TANMEET SAHIWAL

1
 ACKNOWLEDGEMENT

Writing a research paper was one among the foremost and difficult tutorial challenges we even have
ever faced in my student life.

This paper would have not been possible without the help of my professor my family and my friends
who helped, supported and encouraged me to finish this project.

While doing the research for this paper we came across a lot of new aspects of Lease Laws and helped
me to understand the concept of lease laws and and its Intricacies’ in Land Laws and in great depth.
We would like to thank our Professor Dr. Tanmeet Sahiwal for giving us this opportunity to carry out
my research on this topic as a group and for providing us with her valuable to assist and coordinate
with us to complete this assignment.

2
 TABLE OF CONTENT

Serial No. Heading Page No

1. TABLE OF CASES 4

2. INTRODUCTION 5

3. LITERATURE REVIEW 5

4. RESEARCH OBJECTIVE 6

5. RESEARCH QUESTION 6

6. RESEARCH METHODOLOGY 6

7. LEASE AND LICENCE UNDER INDIAN LEGISLATION 7

8. LEASE AGREEMENTS 8

9. ESSENTIALS OF LEASE AGREEMENTS 8

10. RIGHTS AND LIABILITES OF LESSOR AND LESSEE 9

11. MODES OF DETERMINATION OF LEASE 11

12. MODES OF LEASE 11

13. KINDS OF LEASE 11

14. WHAT IS THE DOCTRINE OF FRUSTRATION 12

UNDER SECTION 56 OF THE ICA?
15. MODEL TENANCY ACT 13

16. CONCLUSION AND SUGGESTIONS 14

3
 TABLE OF CASES

Case name Page no.

1. Byramjee Jeejeebhoy (P) Ltd. V State Of Maharashtra Air 1965 8
SC 590
2. Commissioner of income tax , Assam V. Panbari Tea Co Ltd 13
AIR 1965 SC 1871”
3. Jaswant Sing Mathura Sing v Ahmedabad Municipal 11
Corporation AIR 1991 SCC 2130
4. Lord Kenyon in Goodright D Hall V Richardson 1789 2 Term 13
Rep 462
5. S. Rajeev Singh V. Punching Associates AIR 2008 Del 56 13
6. Shiv Dayal V. Pattu Lal 140 Ind Case 491(1933) 8

4
 I. INTRODUCTION

For as long as human culture has existed, the right to property and its enjoyment has existed. 1
While the Indian Constitution recognised this right as a fundamental right, it was later
amended to include it as a constitutional right rather than a fundamental right that could be
held accountable if violated. While everyone has the unassailable right to enjoy their own
property, everyone also has the right to temporarily grant that right to someone else in
exchange for something. This includes leases, mortgages, and licences, among other things.

According to Stickney and Weil, “A lease is a contractual arrangement calling for the
user(lessee) to pay the owner (lessor) for use of an asset”2

There are two types of tenancy agreements in India: lease agreements and leave and licence
agreements. Rent control laws apply to lease agreements. The amount of rent is calculated by
taking into account the cost of building the property and the market price of the land.
Landlords follow the strict rent laws that apply to these agreements when renting out property
for a year.

In Olden days, the transfer of the immovable properties was governed by the principles of the
British Law. In 1882, The Transfer of Property Act came into force. This deals with the rules
and regulations which must be followed during a transfer of property between the living
persons. This act deals with both transfer of movable and immovable properties. Thus, in this
paper we are going to look about a detailed study on the Lease and its kinds, which plays a
vital role in the process of the transfer of property.

1
Sushanth Salian, “History of the Removal of the Fundamental Right to Property”, CENTRE FOR CIVIL
SOCIETY p. 232. (2005).
2
2 Stickney and Weil 2007 p. 791 (Glossary of Financial Accounting: An Intro. To Concepts, Methods, and Use
12e)

5
 II. LITERATURE REVIEW

All technical aspects of the study had to be covered in accordance with the law as quoted for
the following research, “Transfer of Property Act 1882”3 by “Dinshah Fardunji Mulla,
written by Dr Poonam Pradhan” and “Textbook on the Transfer of Property Act”4 by
DrAvatar Singh was referred to further comprehend the provisions of the laws. Because a
section’s applicability is dependent on the qualified fulfilment of its essentials, the books
provided the researcher with a detailed understanding of those essentials.

Further reading of the texts also enables the researcher to identify gaps in the literature that
can be addressed in the future of this paper. Furthermore, to ensure better legal precedents for
supporting this write-up, “The Transfer of Property Act” 5 Prof (Dr) Harpreet Kaur's work was
also cited. In the context of the issues discussed, the text is especially useful as a guide in
legal precedents. Furthermore, the digest included information specific to the case under
discussion in this text.

Article published by renowned legal article website Academike, titled “Definition of License
and granting of licence”6 Ms. Yamini Rajora was referred to instil background information on
the specific nooks related to the licencing procedure and process, Including the variability of
such contracts. C.F. Fernandes, a well-known lawyer, wrote a research paper on, titled “Lease
and Licence”.

Lastly, research article titled “Licence and its Revocation” 7 was referred to in order to more
vividly understand the concepts surrounding the concept of licence under the Indian
Easement Act through careful analysis of each and every provision of the licencing as
mentioned.

3
“Dr Poonam Pradhan, “the transfer of property act” (ed. 13, LexisNexis, 2018)”
4
“Dr avatar Singh, textbook on “the transfer of property act” (ed. 5, LexisNexis, 2015)”
5
“3 prof (dr) Harpreet Kaur, “the transfer of property act”. (Ed 6, LexisNexis, 2021”
6
“Yamini rajora, definition of “licence and granting of licence”, academike. (30th April 2015, last visited 20th
April 2021)”.
7
Achal gupta, licence and its revocation, scconline. (21st February, 2021) (last visited 22nd April, 2021)
https://www.scconline.com/blog/post/2021/02/27/license/

6
 III. RESEARCH OBJECTIVES

• To comprehend in depth the provisions of Section 105 of “the Transfer of Property Act”
(leasing) and their essential components.

• To comprehend the provision under Section 52 of the “Easement Act” (licencing) and its
essential components.

•Know the distinction between “Lease” and “Licensing”

IV. RESEARCH QUESTION

• What is “lease” under the Transfer of Property Act and what are its essentials?

• What are the primary distinctions between leasing and licencing?

• what is the Model Tenancy Act?

V. RESEARCH METHODOLOGY

For the current research, the method used in this paper would be doctrinal and descriptive
form of research. The authors in this paper mainly relied on primary source of data which
includes, statutory provisions, case studies and case laws.

7
 VI. LEASE AND LICENCE UNDER INDIAN LEGISLATIONS

Definition of lease under the “Transfer of Property Act of 1882” and licence under the
Easement Act of 1882 –

The concept of lease of immovable property is addressed in Chapter V of “The Transfer of

Property Act” of 1882. To comprehend the notion of lease, one has to initially grasp the
concept of immovable property. It is exactly what it sounds like: immovable property. –

“Immovable property shall include land, benefits to arise out of land, things attached to the
earth, or permanently fastened to anything attached to the earth”8.

According to the definition, everything that comes from land or benefits from it comes from
land9, Immovable property is defined as anything that is permanently attached to the land and
cannot be severed. Although this definition suffices, it is also important to review the
definition of the “Transfer of Property Act”.

The Transfer of Property Act defines it as, except of standing timber, growing crops, and
grass, everything included in the definition of immovable object is an immovable property”.

“Lease” is “defined under Section 105 of the Transfer of Property Act”

“A simple reading of the section reveals that a lease only transfers the right to enjoy the
immovable property in exchange for a periodic replenishment of consideration”. The
transferor is referred to as a “lessor”, and the transferee is referred to as a “lessee”.

In the case of “Byramjee Jeejeebhoy (P) Ltd. V. State of Maharashtra”10, A lease, according
to the Supreme Court, is a “transfer of a right to enjoy land for a term or in perpetuity in
exchange for a price paid or promised or service or other valuable things to be rendered” on a
regular or stipulated basis by the transferor of the property.

“License” is defined under section 52 of the Easement, Act, 1882 as –

A quick read of the section reveals that the licence is nothing more than a permit to do
something with the property. In contrast to a lease, no complete enjoyments are transferred;
instead, only a specific enjoyment associated with the property that would otherwise
constitute trespass is transferred.

8
“Article 3(26), THE GENERAL CLAUSES ACT, No. 10 of 1897”
9
“Shiv Dayal V. Pattu Lal, 140 Ind Cas 491 (1933)”
10
AIR 1965 SC 590

8
 VII. LEASE AGREEMENT

A “lease is an agreement between two parties to transfer a real estate” interest (the Lessor and
the Lessee). A lease of immovable property is a transfer of the right to use such property for a
set period of time, expressly or implicitly, or in perpetuity, in exchange for money or other
valuable item to be paid to the transferor on specific occasions by the transferee, who accepts
the transfer on such terms. The essential requirements of a valid contract under “The Indian
Contract Act” of 1872 must be met because the Lessor and Lessee have a contractual
relationship.

VIII. ESSENTIAL ELEMENTS OF LEASE11

 The subject matter of the lease, also known as the objective of the lease agreement,
must be specified in the contract in order to fulfil the requirements of the agreement.
It is needed that the objective of the transfer of the right of the immovable property,
the services and profit decided upon and any other relevant information be written
down in the lease contract.
 A lease agreement requires the presence of two or more parties in order to ensure that
the rights to immovable property are transferred in an appropriate manner.
 A lease agreement can be established for immovable property or assets only. It is not
possible to do this with movable property. The immovable property will be used in
accordance with the terms of the leased space, and the rights to the property will be
traded between the lessor and the lessee.
 It is essential to have lawful consideration in order to fulfil the requirements of a
lease contract.
 The duration of a lease agreement is an essential component that indicates the
beginning of the contract as well as the length of time for which the services and
rights will be transferred.

11
N. Krishnamoorthy & Prasanth Kumar Singh – Transfer of property Act, 1882, Edition 2008

9
 IX. “RIGHTS AND LIABILITIES OF LESSOR AND LESSEE”:

Section 108 of the Transfer of Property Act of 1882 expresses both the lessor's and lessee's
rights and liabilities.

Rights of the Lessor:

 The lessee has the right to recover the rent as stated in the lease agreement.
 If the lessee infringes the lease agreement's clauses and conditions, “the lessor has the
right to reclaim possession of his property”
 If the lessor's property is damaged as a result of the lessee's actions, the lessor has the
right to seek compensation from the lessee.

Liabilities of the Lessor:

 Duty to disclose defects-

Prior to entering into the lease agreement, the Lessor is required to disclose the
property's defects to the Lessee.

 Obligation to deliver possession-

The Lessor should give the Lessee possession of his property after signing the rental
agreement.

 Make a pact for quiet enjoyment-

When the Lessee follows the terms and conditions of the lease agreement and pays the
rent on time, the Lessor should not terminate the lease agreement.

10
 In the case of “Jaswant Singh Mathura Singh V. Ahmedabad Municipal
Corporation”12, The court ruled that the lease establishes property rights and interests
and that the tenant has the right to possession of the property until the lease is fully
terminated.

Rights of the Lessee:

• Right to repair property-

If the Lessor is unable or unwilling to repair the property, the Lessee may do so
himself. That sum can then be “deducted from rent or recovered from the Lessor”

• Ability to remove fixtures-

If the Lessor is unable or unwilling to make repairs, the Lessee may do so. This
amount can then be deducted from the rent or recovered from the Lessor.

• The right to reap crop benefits-

The lessee also has the right to use the property and collect the proceeds from crops
grown on the property during the lease period.

Liabilities of the Lessee:

• Duty to disclose facts-

The Lessee must disclose to the Lessor all true facts about the property.

• Rent payment obligation-

It is the Lessee's responsibility to pay the rent to the Lessor as specified in the lease
agreement.

• Obligation to maintain property-

The “lessee is obligated to keep the property in good condition and return it to the
Lessor in the same condition that the Lessor handed over the property during the
agreement, and the lessee should also allow the Lessor or his agent to inspect the
property.

12
AIR 1991 SC 2130

11
 X. MODES OF DETERMINATION OF LEASE:

Modes are defined in Section 111 of the Transfer of Property Act 1882 as A lease of
immovable property determines-

 As a result of the efflux of time13.

A lease is the transfer of the right to enjoy the property for a specified period. 
Therefore, once the period specified in the lease expires, the lease is automatically
determined. So, when a lease for a given period gets determined by a lapse of time
no notice of it is needed.
 Where such time is conditionally limited based on the occurrence of some
event.
The lease may be made subject to certain conditions such as the happening of an
event. In other words, it means that when the terms of the lease are such that they
are limited to take place only on the occurrence of that event, then when the event
takes place, the lease is determined
 In the event that the lessee's and lessor's interests in the entire property
become vested “in the same person at the same time”
When one interest meets with the other it is known as a merger. Usually, when a
limited interest becomes an absolute interest, it is due to the merging of a larger
interest with that of a smaller interest. Therefore, in any case, be it as mentioned
above or even if the lessee acquires rights of co-owners in the property, by merger
his rights become absolute and the lease is determined he then becomes the owner.
 Through implied surrender.

If a surrender takes place by operation of law, it’s an implied surrender. The

surrender can take place either

1) by the creation of new leases or

2) Relinquishment of possession. When the lessee accepts a new lease from the
lessor on the property already leased to him, there is implied surrender of the
previously existing lease. In this way, the earlier lease gets determined.

13
Kinds Of Leases of Immovable property, TPA by Dr.  R.K. Sinha (Pg- 481-489)

12
 XI. KINDS OF LEASE:

In India, various types of leases are used. “Section 105 of the Transfer of Property Act
of 1882 recognises only three types of leases”:
 Leases for a set period of time- “Leases for a specific time period the word "certain"
in the section means that it is fixed or capable of being made certain at a later date.
The deadline must be guaranteed”
In the case of “Lord Kenyon in Goodright D Hall V. Richardson”14, According to the
court, the certainty did not have to be determined at the time. If, over time, a day
arrives that makes it certain, that is enough for such a lease.
 Periodic leases- “Periodic leases are leases that are usually for a set period of time. A
lease for a set period of time, such as a month-to-month or year-to-year lease, falls
under this category”.

In the case of “S. Rajeev Singh V. Punching Associates” 15, Periodic leases are defined
as leases with a term that is continuous from period to period.

 Leases in perpetuity- A lease in perpetuity is a lease that is held for an indefinite

period of time. A long-term lease or a permanent lease are other terms for it. In this
case, the lease is passed down from generation to generation”.

In the case of “Commissioner of income tax, Assam V. Panbari Tea Co Ltd” 16, When
the Lessor's interest was divided for a price, it was decided that the paid price is the
surcharge, but the periodic “payment for the enjoyment of benefits is a rent”.

XII. WHAT IS THE DOCTRINE OF FRUSTRATION UNDER SECTION 56

OF THE ICA?
14
“1789 2 Term Rep462”
15
“AIR 2008 Del 56”
16
“AIR 1965 SC 1871”

13
Section 56 of the ICA provides for two types of contractual impossibility:

(a) An agreement to perform an impossible act is null and void from the start; and

(b) An agreement to perform a task that becomes impossible after it is made due to the
intervention of some event that the promisor could not prevent becoming void at the stage of
such event's occurrence.

Because “each state has its own rent laws, when the Model Tenancy Law takes effect, state
governments will have the option of enacting and adopting entirely new rent legislation to
replace the previous Act, or amending their existing rent law to incorporate the Model
Tenancy Law's provisions”.

XIII. MODEL TENANCY ACT:

The draught Model Tenancy Act, written by the Ministry of Housing and Urban Affairs in
2020, was “approved by the Union Cabinet in” 2021. According to the 2011 Census, nearly
one crore residential properties are unrented or unoccupied in metropolitan regions.

Among the concerns are various difficulties in “landlord-tenant relationships, fear of

repossession, non-payment, late payment, damage to the premises, and so on. The Union
Cabinet hopes that the Model Tenancy Act, 2021, will upgrade and improve the status of rent
regulations after two years of declaration and one year of drafting”.

Since “each state has already local rent laws, when the Model Tenancy Law goes into effect,
state governments will have the option of enacting and adopting completely new rent
legislation to replace the previous Rent Act, or” amending their existing rent law.

14
17

XIV. CONCLUSION AND SUGGESTION:

17
Source: Times of india date:22nd November 2014

15
The lease is addressed in Chapter V, Sections 105-117 of the Transfer of Property Act of
1882. The lease is a crucial concept in real estate law. The majority of individuals around the
world will own estate, either their own or by paying rent or a premium for a third-party's
property. As a direct consequence, understanding leases is critical not only for lawyers but
also for all citizens, because everybody will own estate at some point in their lives. If a
person enters into a lease agreement without first knowing what a lease is, he or she may be
misled and fail to have a proper lease agreement. A lease is simply a contract for a set period
of time between a lessor and a lessee. The duration, term, amount to be paid, when and how it
is to be paid, and so on must all be specified. Violation of the rental agreement's rules,
regulations, provisions, and terms is illegal and punishable by law. If both the lessor and
lessee perform well, a rental agreement is a wise choice. As a result, we can gain a basic
understanding of what a lease is, who the lessor and lessee are, and what their respective
rights and liabilities are.

“Property exists by grace of the law. It is not a fact, but a legal fiction” -Max Stimer

XV. BIBLIOGRAPHY
16
1. Sushanth Salian, “History of the Removal of the Fundamental Right to Property”,
CENTRE FOR CIVIL SOCIETY p. 232. (2005).
2. Stickney and Weil 2007 p. 791 (Glossary of Financial Accounting: An Intro. To
Concepts, Methods, and Use)
3. Dr Poonam Pradhan, “The Transfer of property act” (ed. 13, LexisNexis, 2018)”
4. Dr avatar Singh, textbook on “The Transfer of property act” (ed. 5, LexisNexis,
2015)”
5. 3 prof (dr) Harpreet Kaur, “The Transfer of property act”. (Ed 6, LexisNexis, 2021”
6. Yamini rajora, definition of “licence and granting of licence”, academike. (30th April
2015, last visited 20th April 2021)”.
7. Achal gupta, licence and its revocation, scc online. (21st February, 2021)
https://www.scconline.com/blog/post/2021/02/27/license/
8. Article 3(26), THE GENERAL CLAUSES ACT, No. 10 of 1897”
9. Shiv Dayal V. Pattu Lal, 140 Ind Cas 491 (1933)”
10. AIR 1965 SC 590
11. N. Krishnamoorthy & Prasanth Kumar Singh – Transfer of property Act, 1882,
Edition 2008
12. Kinds Of Leases of Immovable property, TPA by Dr.  R.K. Sinha (Pg- 481-489)
13. 1789 2 Term Rep 462”
14. AIR 2008 Del 56”
15. AIR 1965 SC 1871”

17
 XVI. APPENDIX
Under the Easement, Act, 1882
52. “License” defined- Where one person grants to another, or to a definite number of other
persons, a right to do, or continue to do, in or upon the immovable property of the grantor,
something which would, in the absence of such right, be unlawful, and such right does not
amount to an easement or an interest in the property, the right is called a license.
Under the Transfer of Property Act
105. Lease defined- A lease of immoveable property is a transfer of a right to enjoy such
property, made for a certain time, express or implied, or in perpetuity, in consideration of a
price paid or promised, or of money, a share of crops, service or any other thing of value, to
be rendered periodically or on specified occasions to the transferor by the transferee, who
accepts the transfer on such terms. Lessor, lessee, premium and rent defined.—The transferor
is called the lessor, the transferee is called the lessee, the price is called the premium, and the
money, share, service or other thing to be so rendered is called the rent.
111. Determination of lease.—A lease of immoveable property determines—
(a) by efflux of the time limited thereby:
(b) where such time is limited conditionally on the happening of some event—by the
happening of such event:
(c) where the interest of the lessor in the property terminates on, or his power to dispose of
the same extends only to, the happening of any event—by the happening of such event:
(d) in case the interests of the lessee and the lessor in the whole of the property become
vested at the same time in one person in the same right:
(e) by express surrender; that is to say, in case the lessee yields up his interest under the lease
to the lessor, by mutual agreement between them:
(f) by implied surrender:
(g) by forfeiture; that is to say,
(1)in case the lessee breaks an express condition which provides that, on breach thereof, the
lessor may re-enter 1 ***; or
(2) in case the lessee renounces his character as such by setting up a title in a third person or
by claiming title in himself;
(3) the lessee is adjudicated an insolvent and the lease provides that the lessor may re-enter
on the happening of such event]; and in 1 [any of these cases] the lessor or his transferee 2
[gives notice in writing to the lessee of] his intention to determine the lease: (h) on the
expiration of a notice to determine the lease, or to quit, or of intention to quit, the property
leased, duly given by one party to the other
106. Duration of certain leases in absence of written contract or local usage.—

18
(1) In the absence of a contract or local law or usage to the contrary, a lease of immovable
property for agricultural or manufacturing purposes shall be deemed to be a lease from year
to year, terminable, on the part of either lessor or lessee, by six months’ notice; and a lease of
immovable property for any other purpose shall be deemed to be a lease from month to
month, terminable, on the part of either lessor or lessee, by fifteen days’ notice.
(2) Notwithstanding anything contained in any other law for the time being in force, the
period mentioned in sub-section (1) shall commence from the date of receipt of notice.
(3) A notice under sub-section (1) shall not be deemed to be invalid merely because the
period mentioned therein falls short of the period specified under that sub-section, where a
suit or proceeding is filed after the expiry of the period mentioned in that sub-section.
(4) Every notice under sub-section (1) must be in writing, signed by or on behalf of the
person giving it, and either be sent by post to the party who is intended to be bound by it or
be tendered or delivered personally to such party, or to one of his family or servants at his
residence, or (if such tender or delivery is not practicable) affixed to a conspicuous part of the
property.]
107. Leases how made.— A lease of immoveable property from year to year, or for any term
exceeding one year, or reserving a yearly rent, can be made only by a registered instrument.
2 [All other leases of immoveable property may be made either by a registered instrument or
by oral agreement accompanied by delivery of possession.
3 [Where a lease of immoveable property is made by a registered instrument, such
instrument or, where there are more instruments than one, each such instrument shall be
executed by both the lessor and the lessee:] Provided that the State Government may,
4 *** from time to time, by notification in the Official Gazette, direct that leases of
immoveable property, other than leases from year to year, or for any term exceeding one
year, or reserving a yearly rent, or any class of such leases, may be made by unregistered
instrument or by oral agreement without delivery of possession.]
108. Rights and liabilities of lessor and lessee.— In the absence of a contract or local usage
to the contrary, the lessor and the lessee of immoveable property, as against one another,
respectively, possess the rights and are subject to the liabilities mentioned in the rules next
following, or such of them as are applicable to the property leased:—
(A) Rights and liabilities of the lessor
(a) the lessor is bound to disclose to the lessee any material defect in the property, with
reference to its intended use, of which the former is and the latter is not aware, and which the
latter could not with ordinary care discover:
(b) the lessor is bound on the lessee’s request to put him in possession of the property:
(c) the lessor shall be deemed to contract with the lessee that, if the latter pays the rent
reserved by the lease and performs the contracts binding on the lessee, he may hold the
property during the time limited by the lease without interruption. The benefit of such
contract shall be annexed to and go with the lessee’s interest as such, and may be enforced by

19
every person in whom that interest is for the whole or any part thereof from time to time
vested;
(B) Rights and liabilities of the lessee
(d) if during the continuance of the lease any accession is made to the property, such
accession (subject to the law relating to alluvion for the time being in force) shall be deemed
to be comprised in the lease:
(e) if by fire, tempest or flood, or violence of an army or of a mob, or other irresistible force,
any material part of the property be wholly destroyed or rendered substantially and
permanently unfit for the purposes for which it was let, the lease shall, at the option of the
lessee, be void:
Provided that, if the injury be occasioned by the wrongful act or default of the lessee, he shall
not be entitled to avail himself of the benefit of this provision:
(f) 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 the rent, or otherwise recover it from the lessor:
(g) 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 the rent, or otherwise recover it from
the lessor: (h) the lessee may 1 [even after the determination of the lease] remove, at any time
2 [whilst he is in possession of the property leased but not afterwards,] all things which he
has attached to the earth: provided he leaves the property in the state in which he received it:
(i) when a lease of uncertain duration determines by any means except the fault of the 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:
(j) 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. The lessee shall not, by reason only of such transfer, cease to be subject to any of
the liabilities attaching to the lease: nothing in this clause shall be deemed to authorise a
tenant having an untransferable right of occupancy, the farmer of an estate in respect of
which default has been made in paying revenue, or the lessee of an estate under the
management of a Court of Wards, to assign his interest as such tenant, farmer or lessee:
(k) the lessee is bound to disclose to the lessor any fact as to the nature or extent of the
interest which the lessee is about to take, of which the lessee is, and the lessor is not, aware,
and which materially increases the value of such interest:
(l) the lessee is bound to pay or tender, at the proper time and place, the premium or rent to
the lessor or his agent in this behalf:
(m) the lessee is bound to keep, and on the termination of the lease to restore, the property in
as good condition as it was in at the time when he was put in possession, subject only to the
changes caused by reasonable wear and tear or irresistible force, and to allow the lessor and

20
his agents, at all reasonable times during the term, to enter upon the property and inspect the
condition thereof and give or leave notice of any defect in such condition; and, when such
defect has been caused by any act or default on the part of the lessee, his servants or agents,
he is bound to make it good within three months after such notice has been given or left:
(n) if the lessee becomes aware of any proceeding to recover the property or any part thereof,
or of any encroachment made upon, or any interference with, the lessor’s rights concerning
such property, he is bound to give, with reasonable diligence, notice thereof to the lessor:
(o) the lessee may use the property and its products (if any) as a person of ordinary prudence
would use them if they were his own; but he must not use, or permit another to use, the
property for a purpose other than that for which it was leased, or fell 1 [or sell] timber, pull
down or damage buildings 1 [belonging to the lessor or] work mines or quarries not open
when the lease was granted, or commit any other act which is destructive or permanently
injurious thereto:
(p) he must not, without the lessor’s consent, correct on the property any permanent structure,
except for agricultural purposes:
(q) on the determination of the lease, the lessee is bound to put the lessor into possession of
the property.
109. Rights of lessor’s transferee.— If the lessor transfers the property leased, or any part
thereof, or any part of his interest therein, the transferee, in the absence of a contract to the
contrary, shall possess all the rights and, if the lessee so elects, be subject to all the liabilities
of the lessor as to the property or part transferred so long as he is the owner of it; but the
lessor shall not, by reason only of such transfer, cease to be subject to any of the liabilities
imposed upon him by the lease, unless the lessee elects to treat the transferee as the person
liable to him: Provided that the transferee is not entitled to arrears of rent due before the
transfer, and that, if the lessee, not having reason to believe that such transfer has been made,
pays rent to the lessor, the lessee shall not be liable to pay such rent over again to the
transferee. The lessor, the transferee and the lessee may determine what proportion of the
premium or rent reserved by the lease is payable in respect of the part so transferred, and, in
case they disagree, such determination may be made by any Court having jurisdiction to
entertain a suit for the possession of the property leased.
110. Exclusion of day on which term commences.—Where the time limited by a lease of
immoveable property is expressed as commencing from a particular day, in computing that
time such day shall be excluded. Where no day of commencement is named, the time so
limited begins from the making of the lease.
Duration of lease for a year.—Where the time so limited is a year or a number of years, in the
absence of an express agreement to the contrary, the lease shall last during the whole
anniversary of the day from which such time commences.
Option to determine lease.—Where the time so limited is expressed to be terminable before
its expiration, and the lease omits to mention at whose option it is so terminable, the lessee,
and not the lessor, shall have such option.
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, or

21
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.
113. Waiver of notice to quit.—A notice given under section 111, clause (h), is waived, with
the express or implied consent of the person to whom it is given, by any act on the part of the
person giving it showing an intention to treat the lease as subsisting
114. Relief against forfeiture for non-payment of rent.—Where a lease of immoveable
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.
[114A. Relief against forfeiture in certain other cases.—Where a lease of immoveable
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 lessee 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 the assigning, underletting, 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.]
115. Effect of surrender and forfeiture on under-leases.— The surrender, express or
implied, of a lease of immoveable property does not prejudice an under-lease of the property
or any part thereof previously granted by the lessee, on terms and conditions substantially the
same (except as regards the amount of rent) as those of the original lease; but, unless the
surrender is made for the purpose of obtaining a new lease, the rent payable by, and the
contracts binding on, the under-lessee shall be respectively payable to and enforceable by the
lessor.
The forfeiture of such a lease annuls all such under-leases, except where such forfeiture has
been procured by the lessor in fraud of the under-lessees, or relief against the forfeiture is
granted under section 114.
116. Effect of holding over.—If a lessee or under-lessee of property remains in possession
thereof after the determination of the lease granted to the lessee, and the lessor or his legal
representative accepts rent from the lessee or under-lessee, or otherwise assents to his
continuing in possession, the lease is, in the absence of an agreement to the contrary, renewed
from year to year, or from month to month, according to the purpose for which the property is
leased, as specified in section 106.
117. Exemption of leases for agricultural purposes.—None of the provisions of this
Chapter apply to leases for agricultural purposes, except in so far as the State Government 1
*** may by notification published in the Official Gazette, declare all or any of such

22
provisions to be so applicable 2 [in the case of all or any such leases], together with, or
subject to, those of the local law, if any, for the time being in force.
Such notification shall not take effect until the expiry of six months from the date of its
publication.

23