LEASE

Dr. Amirthalingam. S
Associate Professor of Law
TNNLS
Trichy
LEASE

LESSOR

LESSEE

PREMIUM

RENT
 LEASE
A lease of immovable property is a transfer
of right to enjoy such property, made for a
certain time, express of 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.
 DURATION OF CERTAIN LEASE

ABSENCE OF WRITTEN CONTRACT OF LOCAL USAGE

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 de
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.
Notwithstanding anything contained in any other law
for the time being in force, for the period mentioned
in sub-section (1) shall commence from the date of
receipt of notice.

A notice under sub-section (1) shall not to be invalid

merely because of the period mentioned therein falls
short of the period specified under that sub-section,
where a suit or proceeding is field after the expiry of
that period mentioned in that sub-section.
Every notice under sub-section (1) must be in
writing, signed by or on behalf of the person giving
it, and either by 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.
 LEASE HOW MADE?

A lease of immovable 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

All other leases of immovable property may be

made either by a registered instrument or by oral
agreement accompanied by delivery of possession
Whereas the lease of immovable property is made
by a registered instrument, such instrument or,
where there are instruments than one, each such
instrument shall be executed by both the lessor and
the lessee.
Provided that the State Government may from time
to time, by notification in the Official Gazatee,
direct that leases of immovable property, other than
leases from one year, or for any term exceeding one
year, or reserving a yearly rent, or any other class of
such leases,, may be made by unregistered
instrument or by oral agreement without delivery of
possession.
 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:
EXCEPTION

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.
EXCLUSION OF DAY ON WHICH TERM COMMENCES

Where the time limited by a lease of immovable

property is expressed as commencing from a
particular day, in computing that time shall be
excluded. Where no day of commencement is
named, the time so limited begins from the making
of the lease.
 LESSOR
Rights
Sec – 108 (c) : deemed to contract with
lessee Liabilities

Sec – 108 (a) : disclose

Sec – 108 (b) : put him possession
 LESSEE
Rights
Sec – 108 (d) : Accession with the
property to enjoy Liabilities
Sec – 108 (e) : Right to terminate/avoid
lease
Sec – 108 (f) : Right to repair the Sec – 108 (k) : duty to disclose facts
property Sec – 108 (l) : duty to pay rents
Sec – 108 (g) : Right to make payments Sec – 108 (m) : duty to maintain
Sec – 108 (h) : Right to remove fixtures property
Sec – 108 (i) : Right to have the benefit Sec – 108 (n) : duty to give notice to
of crops encroachment
Sec – 108 (j) : Right to assign his Sec – 108 (o) : duty to use the
interest property in a reasonable way
Sec – 108 (p) : duty to erect
permanent structure without consent
from the lessor
Sec – 108 (q) : duty to re-transfer the
property
Ramlal Dutt v. Dhirendranath
Dhiryawan v. Thakur
Pandi Kishan Lal v. Ganpat Ram Khosla
W.H. King v. Republic of India
Hansraj v. Bejoy Lal Seal
V. Kalpakam Amma v. Muthurama Iyer
Shiv Ram v. Sham Lal
RIGHTS OF LESSOR’S TRANSFEREE
V. Kalpakkam Amma v. Muthurama Iyer
Mirza Afzal Beg v. Prabhu Dayal
Rajandheer (India) Pvt. Ltd. V. DDA
Chandarsekar v. Alexander
Dayanand Gupta v. Gobind Lal Bangur
Vasant Kumar Radha Krishnan Vora v. Board of
Trustees of the Port of Bombay
 DETERMINATION OF LEASE
By the efflux of time limited
Such time is limited conditionally on the happening of
some event
Where the interest of the lessor in the property 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

In case the interests of the lessee and the lessor in

the whole of the property becomes vested at the
same time in one person in the same right.
By the express surrender; that is to say, in case of the lessee yields up
his interest under the lease to the lessor, by mutual agreement between
them
By implied surrender;
By forfeiture;
(1) In the case of lessee breaks an express condition which
provides that, on breach thereof, the lessor may re-enter or
(2) In the case of lessee renounces his character as such by
setting up a title in a third person or by claiming title himself;
(3) The lessee is adjudicated an insolvent and the lease provides
that the lessor may re-enter on the happening of such event in
any of those cases the lessor or his transferee gives notice in
writing to the lessee of his intention to determine the lease.
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.
Mineral Development Co. v. Union of India
Thakar Das v. Custodian
Tara Chand v. Ganga Ram
T. Lakshmipathi v. P. Nithyananda Reddy
Nalakath v. Koonkadan
Amar Krishna v. Nazir Hasan
MINERAL DEVELOPMENT CO. V UNION OF INDIA
 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 by any other act on the part of the lessor showing
an intention to 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.
WAIVER OF NOTICE TO QUIT

A notice is 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.
RELIEF AGAINST FOFEITURE FOR NON-PAYMENT OF RENT
EFFECT OF SURRENDER AND FORFEITURE ON UNDER-LEASES
RELIEF AGAINST FORFEITURE IN CERTAIN OTHER CASES
EFFECT OF SURRENDER AND FORFEITURE ON UNDER-LEASES
EFFECT OF HOLDING OVER
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 may by notification published
in the Official Gazette declare all or any of such
provisions to be so applicable in the case of all or
any of 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.