Case Note & Summary
The dispute concerns a plot of land in Siliguri, West Bengal, leased by the appellant to the respondent for 15 years under an unregistered indenture dated 25 May 1981. The respondent paid rent until 19 April 1984, after which the State requisitioned the land. The appellant challenged the requisition successfully, and the order was set aside in 1998. The respondent continued in possession after the lease expired on 24 May 1996. The appellant filed a suit for eviction, which was decreed by the trial court in 2005. The High Court set aside the decree, holding that the unregistered lease created a month-to-month tenancy under Section 107 of the Transfer of Property Act, 1882, requiring a notice under Section 106 for termination, which was not given. The Supreme Court allowed the appeal, holding that the respondent was a tenant at sufferance after the lease expired, as the respondent admitted the lease was for 15 years and did not hold over with consent. Therefore, no notice under Section 106 was necessary. The Court restored the trial court's decree for possession and mesne profits.
Headnote
A) Property Law - Lease - Unregistered Lease - Section 107 Transfer of Property Act, 1882 - A lease for a term exceeding one year must be made by a registered instrument; an unregistered lease is inadmissible to prove terms except for collateral purpose of showing nature of possession. (Paras 12-13) B) Property Law - Lease - Notice under Section 106 - Tenant at Sufferance - Section 106 Transfer of Property Act, 1882 - Where a tenant continues in possession after expiry of the lease term without the lessor's consent, the tenant is a tenant at sufferance, and no notice under Section 106 is required for eviction. (Paras 14-17) C) Property Law - Lease - Tenant Holding Over - Section 116 Transfer of Property Act, 1882 - A tenant holding over with the lessor's consent requires a notice under Section 106 for termination; but a tenant at sufferance does not. (Paras 14-17)
Issue of Consideration
Whether a notice under Section 106 of the Transfer of Property Act, 1882 is necessary for termination of a lease when the lease deed is unregistered and the tenant continues in possession after expiry of the lease term.
Final Decision
Supreme Court allowed the appeal, set aside the High Court judgment, and restored the trial court's decree for possession and mesne profits. The Court held that the respondent was a tenant at sufferance after the lease expired on 24 May 1996, and no notice under Section 106 of the Transfer of Property Act, 1882 was required for eviction.
Law Points
- Section 107 Transfer of Property Act
- 1882
- Section 106 Transfer of Property Act
- Section 17 Registration Act
- 1908
- Section 49 Registration Act
- Tenant at sufferance
- Notice of termination
- Unregistered lease
