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CHAPTER V OF LEASES OF IMMOVEABLE PROPERTY · A.—Rights and liabilities of the lessor. B.—Rights and liabilities of the lessee

Section 116: Effect of holding over

The Transfer of Property Act, 1882

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.

Illustrations

(a) A lets a house to B for five years. B underlets the house to C at a monthly rent of Rs. 100. The five years expire, but C continues in possession of the house and pays the rent to A. C's lease is renewed from month to month.

(b) A lets a farm to B for the life of C. C dies, but B continues in possession with A's assent. B's lease is renewed from year to year.

Questions on this section

3 questions in 15 of our papers cite Section 116. Try these from the free papers:

  1. 1. A tenant's contractual tenancy of premises governed by rent control legislation was determined, but he continued in occupation under the protection of that statute, and the landlord accepted from him monthly sums equal to the rent. In Ganga Dutt Murarka v. Kartik Chandra Das (1961), the Supreme Court held that such acceptance:

  2. 2. Under Section 116 of the Transfer of Property Act, 1882, if a lessee remains in possession after the determination of the lease and the lessor accepts rent from him or otherwise assents to his continuing in possession, the lease is, in the absence of an agreement to the contrary:

Practise questions on Transfer of Property Act