371

JtJGHTS AN D LIABILITIES OF LESSOR:

8·
'Jbe following are the rights and liabilities of Lessor:
tay .' 1~ -~ ~ :·
The lessor 1s bound to disclose all . material defects
1, .
in the property to the lessee. He must also disclose
all the known latent defects in the property to the
lessee. However, he need not disclose the defects
which are ·discoverable with ordinary care. This is
based on the principle of 'Caveat Emptor'.
(~ b 1 · · (M )> ~ - •
The lessor fs bound to put the les:see m possession
2. "
of the le~sed properti} · The lessee however must
first request the lessor to put him in possession. If
the lessee does not do so an.d fails to take possession,
he need not pay the rent for lease.

( Narayanaswami Vs. Yerramilli, 33 Mad. 499:

held that the ssor is under obligation
e. lessee in · sse·ssiori of -le sed property.
The le see, howeve , has to requ t the lessor to
put · in possess·on. If he does ot do so 'and fails
to t e possessi of the property, then he cannot fl _fl
res~ uit for rent. J 9,t _lJ..-ob
~ka~~tl~eti. ~AQ.~
3. The lessor must indemnify the lessee for all losses ·
incurred by the latter due to the interrupti?n in the
.enjoyment of the property.

hi other words, '{_ is an implied covenant that

lessee wlll have free and quiet enjoyment .of the
r'r,) property. The covenant for title runs with the landJ-
\\c_ ~:- JlMlt ~ t >
~ -~ - AO.-~.~~o€-,W._~ks--~~
 \ 'OJ
' \\i

372

6_ Bidltu B/wsan Vs. Ranqfit, AIR (1981/ Cal lS.,

The Supreme Court ?eld that for successfuu
establishing the disrurbance in the title of lanctior y
the tenant must prove three conditions namely. d,

1. The eviction should be from the premises leased.

2. The party evicting should have good title. 3) The

tenant sh~uld have quit against his will)

ii) Minto .Vs. Kalicharan, .23 Bom. 510

The eviction was under the Land Acquisition Act. It

was held that there was no cause of action by the
lessee against the lessor, since eviction was under
a statutory law.

iii} Forbes V. Ralli (19.25} .27 BOMLR 860:

The landlord D, leased his land to P for erecting a

building for trade. He gave oral permission to build
houses to the Manager·. When the building was
ready, D sued to evict P: Held, D is estopped.
. I

· 4. If the lessor transfers the leased property, the

transferee gets all the rights and . liabilities of the
, lessor.

However, for making the transferee liable, the

lessee must elect to treat the transferee as the
person liable to him. Further, the trans1eree 1·s not
entitled to any arrears of rent due b e fore the
transfer.
 373
< I '
RIGHTS AN D LIABILiTDCs OJI' THE LESSEE;:
Toe following are the rights and liabilities of the
Lessee:
. - . ce9
ouring the continuation of the lease, if any accession
is made to the property~~ such accessed property
must also be· returned with the main property to
the lessor. In other words, " Accessory follows the
principle" in the accessed lands. _

~ } Saila Bala Vs~ Bworna Moyee, (1939) Cal 275: .

The Court held that the increase in the area of ·the
land by alluvion is an accession.

ii} S.R.M.M.C. T.M. Firm Vs. Ko. :Po Slu. (1936}

Rang 127:

The court held that an adjoining waste land brought

under c:;a~ ston~ e\ t ~ ·
If part of the property is destroyed by ta:e- (Vis Major)
then the lease becomes void at the option o~ the
lessee. However, such destruction of the prop~rty
must not be due to the wrongful act of the lessee.
: ·. (+) . .. .
3. If the lessor neglects to make sufficient repairs even .
after notice by the lessee, the lessee· can ·make such
repairs himself and can deduct the expenses of such
repairs with interest from the -rent.
. (~ \.
4. If the lessor neglects to make payment of revenue,
tax etc · the lessee can make such payment a nd
'
deduct ·, .
such payments from the rent with .interest
. from the lessor with mterest.
or recover the amount .
 - • D\\

5.
l~.) ~t-r~,
After the termination of the lease, the lessee can
remove all the things which he had attached to the
earth but he must leave the prope~ .i.11 the same
state as he received it. .. ·

i} Darbari Lal Vs. raneeganj Coal Association. 22

Pat 554 (1944} A Pat. 30:
The pla"intiffs sued the defendants (tenants) for
eviction. The defendants who had built on the
plaintiffs land set up a right to a permanent tenancy.
There was no . registered instrument for the same.
In addition, the defendants claimed that ·they were
entitled to compensation. The Court held that the
defendants have no right to claim compensation.

ii} In,!3asantial vs. State of U.P. (i981} ~.C. 170

The Supreme Court held that the landlord was
entitled to all fixtures
'
as they
. were not . removed
within the 4 months' •period for doing so under the
lease .

GiiJ Govind Prasad Vs. Charusila, 60 Cal 10~2

The Court held that the tenant's right to remove
fixtUres can be exercisable. ·oniyduring. the· term of
lease. (IQe tenant had no right to fixtures after the
termination of th_e_leas«;J , ,

6.
t- ty·
If the lease is terminated by some uncertain events,
the lessee or his legal representatives can get all
the crops harvested by them and to have ingress
(entry) and egress (exit) together with the produce ·
and _carry them.
 c~) 1Ljt ~ 75~ &
7_ The lessee may sub lease or mortgage the whole or
any part of leased property in the absence of any
express ~rovision _in the lease deed._ I) l , L , n A--
· l k) P-J.tl ~olo>)R._ lcd :
8. The lessee is bound to disclose to the lessor · any
material increase in the value of the property known
to him .lQ_) . ~-r~,• ~
1
,_i •. : 1

9. The lessee is bound to pay the premium or the rent

to the lessor or to his Agent at th_e proper time or .
place.

'/!' Lessee,s liability to pay rent: (Sec. l 08}

As pe~ Section 108 (l), the lessee is liable to pay
reI\t ,tQ, the le~·~or for enjoyment . o f. the leased
• - - , ,- ~ • -..... i _

property. It is a personal liability: Tocnessee cannot

escape liability for rent by assigning the lease to
hold interest. The contract between the lessor and
the les~ee is p~i~~te ''·between them only and the
· third party namely the assignee _c ann?t interfere.
j . ·i
ii} Bidhu Bhusan Vs. Ranajit, AIR (1981} Cal 154,
The Supreme Court; held that the lessee was-ejected
by the true-own~r of the property. Since the lessor
was. not true owner andI • .
faHed
'
to perform • his
obligation tind'er Section 108. ·Cl.(c), he was not
entitled to recover rent from the _lessee.

The assignment of lease does not bind the lessor

and he can ·hold the lessee liable even after
assignment.
 376

Generally in assignment deed, the assignee

undertakes to pay the rent regularly to the lessor
. ·I
and in case of failure, 1he undertakes to .? ompensate
the assignor for non payment of rent and non
observance of the terms of lease deed.
("")~~~-~~~\)~
10. The lessee is bound to keep the ! property in good
condition. He must return The property in the same
condition as he obtained it. He must allow the lessor
and his agent to enter upon the land and inspect
the condition of the land at all reasonable times of
the day. He must give notice of all the defects in
the land to the lessor. \\/\

-
( o) ~to-~}J._MM"'~~-
11 . The lessee must use the property as a person of
ordinary prudence. He must not use the property
for any purpose other than the purpose for which it
was leased . ..

c"~ t& ~u.R

12 : If the lessee becomes aware of any encroachment
on the property, he must give immediate notice to
the lessor for taking steps against such
encroachment.
(f ) ~1o
13 . The lessee must not construct any permanent
structure on the leased property without the lessor's
consent . But for agriculture purpose, he can
construct such permanent structure as may be
necessary even without the consent of the lessor.
 377

Ramsden V.Dyson (1866} LR l HL 129:

Twas a tenant of land and D was the owner. T

erected a building on the land, and sue·d D for
declaration that he was entitled to a 60 years lease,
renewable at his option. He alleged that D's agent
had promised such a grant. The House of Lorc,Is held
that the, plea of T was not valid and that D could
eject T. _
(~) k11 ~ ~ M M - : ~.
14. After the termination of the lease, the lessee is
bound to return the leased property to the possession
of the lessor.
 ~
208 - ~ ~:;:;..::.:.;,;_------
Lectures uu ._ • ----

1. By Efflux of the time (Expiry of Time) [Section 11l(a)].

--
Z. By happening of an event [Section 11 l(b)].
. By tennination of Lessor's Interest [Section 11 I(c)J.
3
. By Merger [Section 11 l(d)J.
4
S. By express surrender [Section 11 l(e)].
6. By implied surrender [Section 11 l(t)]; and
7. By forfeiture [Section 11 I(g)]. (':{:) .
[t. By Efflux of the Time (Expiry ofTt¥!section lll(a)J:
A lease may be created for a specific penod. On expiry of the
period, the lease is tenninated without any formality. No notice
need be served from either side.
2. By happening of an event [Section ltl(b)]: If the tenn of
lease is subject to the condition of happening of an event, the lease
is tenninated upon the happening of such event (It is to be noted
that leasehold interest is transferable and heritable).
3. By Termination of Lessor's Interest [Section lll(c)]:
Lease is effective so long as the lessor is having interest/right/
authority over the property. When his authority/ interest over it is
terminated, the lease also stands terminated automatically.
4. By merger [Section lll(d)]: Merger means uniting
together. Where the rights/ interests of both lessor and lessee are
vested in the same person, it amounts to merger. Merger terminates
lease since the same person cannot be both lessor and lessee.
5. By express surrender [Section lll(e)]: Lessee, with the
consent of lessor may surrender or yield up his interest in lease to
the lessor. Such surrender to Lessor by Lessee terminates the.
lease.
6- By implied surrender [Section lll(f)]: Surrender of
leasehold property may be inferred from the act of parties. When a
lessee accepts from his lessor a new lease of the leased propertY
nd
during th e continuance of existing lease, it is an implied surre er
of the former lease , wh ic
' h amounts to termination.

l
I
 Lease of Immovable .Property 209

BY forfeiture [Section 111(g)J: Lease stands terminated

7· ·wre in the following cases.
bYforfet •• . .
(1) Breach of cond1tion: Lessor can re enter the property if
the Lessee commits breach of condition.
(Z) Denial of landlord (Lessor's) title: If the Jesse~ denies
the title of lessor, sets up the same in himself or in third
person, such conduct is sufficient to forfeit the lease.
(3) Insolvency of the lessee: I~ jsa ,good ground for forfeiture
ofleasS · \.l! {.~) 0-
Questions and bow to answer ~Lo-.,~
Q. Define lease and explain various modes for determination of
lease? (Direct question).
Q. What are the rights and liabilities of lessor and lessee? (Direct
question)
t.o-, 9t4~b) G, .c v
1/ 414 .
V:JU, ·. ~<&_0 _
 111.2. Surrencter Ll 11 , L-1:S . \.~} au- \.1.JJ •
111.3. Notice to quit [111, Cl. (h)].
111.4. Problems.
111.5. Forfeiture of lease [111, Cl. (g)].
111.6. Modes of Determinhlg lease.
:Y
111.1. Mer~er
Effect of the acquisition of proprietorshif a person over a part of the
land of which he is in possession as tenant. It was held by the Privy Council
,.,
in ~ quir Bakish vs. 'Murli Dhaij](1931) P.C. 163, that when a lessee of a t
•portion of the property acqmres a fractional share of the proprietary interest,
there is no m ~ f the tenancy :right in the proprietor~hip, So the lease is
not. extinguished. erger Ca.D; tak~ place only whell the entire interest of the
lesSor and the entire interest of the lessee become vested in the same person.
The owner of the remaining share in the reversion can therefore, recover a
o roportionate})art of the rent from the tenant.
- - ,. ... ,-,,.nn'\ r,,,.1 ,,,.,~ 1t was
 T0000ffiS
. . . m on gagc. auu. :S Uti:S 1.Ul _IJU:S:Sti:S:SIUil · f-\. ClaIIDS roar
tne " " Ile neeo not vacate
as his ongtnal lease 1s stdl in force.
Held:- The original lease ended by implied surrender. After the
usufructuary mortgage, A is not paying, rent fixed by the lease. That means
that the original lease was impliedly surrendered.. So A has to vacate after the
owner redeems the usufructuary mortgage.
Illustration (2J.- fApe_alas¥.lam)l v~ . .B~hara Venkataramanayyg., (1984)
S.C. 1728. A leases the property to B. Then he borrows from B and executes
a mortgage. Subsequently he ·redeems the mortgage .and sues for possession.
. B resists the suit relying on the lease which has not expired. A's suit fails.Q'lle
lease does not merge in the Illortgag~ There is no implied surrender of the
tea8elioicf interest. So B can rely upon the lease and defeat A's s~ In view of
this decision of the Supreme Court, (1981) Raj. 246, requires reconsideration.
Possession after determination of tenancy - Nature of.- On the termination
of lease on default in payment of rent by the lessee the full rights in the
4 • • - -- --..L.. - -= -~1-... A;~IT thP rioht to nossession rever to the lessor. Even
 382
...
M.P.S.R. T. Corporation Vs. Indore Division
Association, AIR -(1987) -.P. 205. - -
The Supreme Court held that a monthly tenant can
quit the tenancy by giving ·1 s days hotice)
. . ---:
_
\,
{J___i. Depak Kumar Vs. Mira Sen. AIR. (1987} SC 759:
The Supreme Court .held ·that even an invalid notice
may be accepted by the ·landlord. In such a case,
the landlord can insist up~n the tenant 'vacatil)g as
per the notice though the notice is inv~

.iii. Chandra ,Nandi Vs. Arun Ku~r, AIR (1986) CaL

249:

The Supreme Co'urt -h eld that when the landlo rd

personally tenders the notic.e and ·if the tenant
· · - · · . ··t elf
refus.e s to accept it, then the tender 1s 1 s
s·u fficient notice,

iv. H.C.__ P~~dey ·vs. GC. PauL AIR {1989) s.c.141o:

. . . . . . . . irit
· The Supreme Court held that If there are JO
6
tenants, then _s~rvice of notice under Section. 1~e
on one of the Joint tenants _is sufficient ·notice, if
is ar.tincr . nn h~li!:l lf nf.' ,.,.._,_ _:. .