Rights and Liabilities of Lessor and Lessee
π Rights and Liabilities of Lessor and Lessee (Section 108, TPA 1882)
Section 108 of the Transfer of Property Act, 1882 deals with the mutual rights and liabilities of lessor and lessee, applicable in the absence of a contract or local usage to the contrary.
πΉ Rights and Liabilities of the Lessor
1. Duty to Disclose Defects (Sec. 108(a))
The lessor must disclose any material defects in the property which:
The lessor knows of, and
The lessee could not discover with ordinary care.
π Case Law β Bhopal Singh v. Chaturbhuj
Court held that if the lessor fails to disclose latent defects which make the property unsuitable for the agreed purpose, the lessee may rescind the lease or claim damages.
2. Duty to Give Possession (Sec. 108(b))
The lessor is bound to put the lessee in possession of the property at the beginning of the lease term.
π Case Law β Radhakrishna v. Smt. Satyabati (1950)
Court held that failure of the lessor to deliver possession gives the lessee the right to repudiate the lease or sue for possession.
3. Covenant for Quiet Enjoyment (Sec. 108(c))
The lessor guarantees that if the lessee pays rent and performs obligations, he shall peacefully enjoy the property without interference.
π Case Law β Krishnamoorthy v. Paramasiva (1956)
The court held that if the lessor or someone claiming under him disturbs the lesseeβs possession, it is a breach of the covenant of quiet enjoyment.
πΉ Rights and Liabilities of the Lessee
1. Right to Accretions (Sec. 108(d))
Any accretions or additions to the property during the lease period belong to the lessee.
π Case Law β Narayan v. Gopal (1939)
The court held that if land increases due to natural accretion, the lessee is entitled to use it during the lease.
2. Option to Avoid Lease if Property Destroyed (Sec. 108(e))
If the property is wholly destroyed or rendered substantially unfit due to fire, flood, violence of army, mob, or irresistible force, the lessee may avoid the lease.
But, if the damage is temporary or repairable, the lease continues.
π Case Law β Raja Dhruv Dev Chand v. Raja Harmohinder Singh (1968 SC)
The Supreme Court held that partial damage does not give the lessee the right to avoid the lease unless the property is rendered substantially unfit.
3. Duty to Pay Rent (Sec. 108(l))
The lessee must pay rent at the proper time and place as agreed.
π Case Law β Harihar Banerji v. Ramshashi Roy (1918 PC)
It was held that payment of rent is an essential duty of the lessee, and failure to pay may result in termination of the lease.
4. Duty to Maintain Property (Sec. 108(m))
The lessee must keep the property in good condition as it was when he received possession, subject to reasonable wear and tear.
If lessor gives notice of defect caused by lesseeβs neglect, lessee must repair within 3 months.
π Case Law β Haji Mohammad v. Smt. Narayani (1972)
Court held lessee liable for damage caused to leased premises due to his negligence.
5. Duty to Use for Proper Purpose (Sec. 108(o))
The lessee must use the property as a prudent person would and only for the purpose for which it was leased.
Misuse can lead to eviction.
π Case Law β Murlidhar v. State of U.P. (1954)
Lessee was evicted for using agricultural land for industrial purpose, violating lease terms.
6. Prohibition on Permanent Alterations (Sec. 108(p))
The lessee cannot erect permanent structures without the lessorβs consent.
π Case Law β Shiv Dayal v. Maniklal (1961 MP HC)
Court held that permanent structures without consent amount to breach, giving the lessor right to re-enter.
7. Duty to Return Possession on Termination (Sec. 108(q))
On determination of lease, lessee must deliver possession back to the lessor.
π Case Law β Qudrat Ullah v. Municipal Board, Bareilly (1974 SC)
Court held that on expiry of lease, lessee has no right to continue possession and must return property to the lessor.
πΉ Summary Table
| Party | Rights | Liabilities |
|---|---|---|
| Lessor | Right to receive rent | Disclose defects, deliver possession, covenant for quiet enjoyment |
| Lessee | Right to accretions, right to avoid lease if property destroyed | Pay rent, maintain property, use for proper purpose, not to erect permanent structures, return possession |
πΉ Conclusion
The lessor must ensure disclosure, possession, and peaceful enjoyment.
The lessee must ensure rent payment, proper use, maintenance, and return of property.
Courts have consistently protected the equity of redemption of lessee while also upholding the lessorβs right to possession when obligations are breached.
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