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Question: What is the status of a lease in occupation of property after the expiry of lease? Is a notice under Section 106 of the Transfer of Property Act, necessary before filing a suit for ejectment of that person? Refer to recent decided cases. [HPJS 2016]Find the answer to the mains question of Property Law only on Legal Bites. [What is the status of a lease in occupation of property after the expiry of lease? Is a notice under Section 106 of the Transfer of Property Act, necessary...

Question: What is the status of a lease in occupation of property after the expiry of lease? Is a notice under Section 106 of the Transfer of Property Act, necessary before filing a suit for ejectment of that person? Refer to recent decided cases. [HPJS 2016]

Find the answer to the mains question of Property Law only on Legal Bites. [What is the status of a lease in occupation of property after the expiry of lease? Is a notice under Section 106 of the Transfer of Property Act, necessary before filing a suit for ejectment of that person? Refer to recent decided cases.]

Answer

A. Tenant Holding Over (Section 116, Transfer of Property Act, 1882)

If the lessee remains in possession after the lease term expires and the lessor accepts rent or otherwise assents to the continued possession, the lease is deemed to have been renewed from month to month or year to year, depending on the original lease terms. This is known as "holding over".

In Burmah Shell Oil Distributing Co. v. Khaja Midhat Noor (1988 AIR 1470), the Supreme Court held that mere continuation in possession does not amount to “holding over” unless there is assent by the lessor.

B. Tenant at Sufferance

If the lessor does not accept rent or consent, the tenant is merely a tenant at sufferance—essentially an unauthorised occupant with no legal right to remain. In such cases, the lessee’s possession is considered wrongful after the lease term ends.

In R.V. Bhupal Prasad v. State of A.P. [(1995) 5 SCC 698], the Supreme Court clarified that after expiry of lease, without the landlord’s consent, the lessee is a tenant at sufferance.

Is Notice under Section 106 TPA Necessary?

Section 106 of the Transfer of Property Act requires 15 days’ notice to determine a lease of immovable property for agricultural or manufacturing purposes, and 30 days for other purposes, unless the lease has expired or been terminated by efflux of time.

When Notice is NOT Required:

  • If the lease has already expired by efflux of time and the lessee is in wrongful possession (tenant at sufferance), no notice under Section 106 is required.
  • Lessor can straightaway file a suit for ejectment or recovery of possession.

In Punjab Waqf Board v. Sham Singh Harbans Singh [(2023) SCC OnLine SC 1378]: 

The Supreme Court held that once the lease period ends and there’s no acceptance of rent or assent to continued possession, the tenant becomes an unauthorised occupant. No notice under Section 106 is required before filing a suit for eviction.

In J.P. Builders v. A. Ramadas Rao [(2011) 1 SCC 429]

Even in cases where the lease is determined by efflux of time, no statutory notice is required if the lessee remains in possession without landlord’s consent.

A notice under Section 106 TPA is not mandatory if the lease has expired and the tenant is merely a tenant at sufferance. The landlord may immediately institute an ejectment suit, as upheld by recent Supreme Court rulings including Punjab Waqf Board v. Sham Singh Harbans Singh (2023).

Mayank Shekhar

Mayank Shekhar

Mayank is an alumnus of the prestigious Faculty of Law, Delhi University. Under his leadership, Legal Bites has been researching and developing resources through blogging, educational resources, competitions, and seminars.

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