S.108 enumerates the implied rights and liabilities of lessor and lessee. S.111 lists the modes of termination (determination) of a lease. These provisions apply unless a contrary intention is expressed in the lease deed.
Legal Framework
| Provision | Subject |
|---|---|
| S.108(a)-(d) | Lessor's rights and duties |
| S.108(e)-(q) | Lessee's rights and duties |
| S.111 | Determination (termination) of lease |
| S.111(g) | Forfeiture |
| S.112 | Waiver of forfeiture |
| S.113 | Waiver: acceptance of rent after forfeiture |
Lessor's Rights and Liabilities (S.108(a)-(d))
| Duty/Right | Provision | Content |
|---|---|---|
| Disclose material defects | S.108(a) | Disclose defects in property not discoverable by ordinary care |
| Give possession | S.108(b) | Put lessee in possession on the lease commencement date |
| Quiet enjoyment | S.108(c) | Covenant: lessee shall not be disturbed by lessor or anyone claiming through lessor |
| Pay taxes | S.108(d) | Lessor to pay government taxes/charges on property (unless lease says otherwise) |
| Right to receive rent | Implied | Primary right of lessor |
| Right to terminate on breach | S.111(g) | Forfeiture if lessee breaches conditions |
| Right to re-entry | S.111(g) read with lease terms | Resume possession after lawful termination |
Lessee's Rights and Liabilities (S.108(e)-(q))
| Right/Duty | Provision | Content |
|---|---|---|
| Right to enjoy property | S.108(e) | Entitled to fruits, profits, and quiet enjoyment |
| Right to accession | S.108(f) | Benefit of any accession to the property during lease |
| Right to make improvements | S.108(h) | Lessee may improve; no right to compensation (unless agreed) |
| Right to remove fixtures | S.108(h) | Domestic and trade fixtures installed by lessee can be removed before lease ends |
| Right to assign/sublet | S.108(j) | Unless expressly restricted in the lease |
| Duty to pay rent | S.108(l) | On due dates |
| Duty to maintain property | S.108(m) | Keep in good condition (ordinary wear excepted) |
| Duty not to commit waste | S.108(n) | Not permanently damage or alter character |
| Duty to give notice of encroachment | S.108(o) | Inform lessor of third-party claims |
| Duty to restore possession | S.108(q) | Return property in the condition received (ordinary wear excepted) |
Illustrations
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Quiet enjoyment (lessor's covenant): Landlord leases a flat to Tenant. Six months later, Landlord cuts off electricity supply to pressure Tenant into paying higher rent. This violates S.108(c): the lessor covenants quiet enjoyment. Tenant can sue for injunction and damages. The landlord cannot disturb possession even if dissatisfied with the rent agreed.
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Lessee's right to remove fixtures: Tenant installs a split AC unit (Rs. 40,000) in the rented flat. At end of lease, Tenant can remove the AC (trade/domestic fixture installed by lessee at own cost). But Tenant cannot remove the bathroom tiles they installed those are permanent improvements that merge with the property (not removable without damage to the property).
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Subletting restriction: Lease says "Lessee shall not sublet without lessor's written consent." Lessee sublets one room without asking. Lessor can invoke forfeiture (S.111(g): breach of express condition). But lessee must first be given notice of the breach and opportunity to cure (S.111(g) proviso).
Termination of Lease (S.111)
| Mode | S.111 Clause | Explanation |
|---|---|---|
| Efflux of time | (a) | Fixed-term lease expires on the agreed end date |
| Happening of event | (b) | Lease terminable on occurrence of specified event (e.g., "until building is demolished") |
| Lessor's interest terminated | (c) | Lessor's own title ends (e.g., life tenant dies) |
| Merger | (d) | Lessee acquires the lessor's interest (both interests merge in one person) |
| Express surrender | (e) | Lessee yields up lease to lessor by mutual agreement |
| Implied surrender | (f) | Lessee accepts new lease from same lessor (impliedly surrenders old) |
| Forfeiture | (g) | Breach of condition by lessee; lessor exercises right of re-entry |
| Notice to quit | (h) | Either party gives notice as per S.106 or lease terms |
Forfeiture (S.111(g)) Detailed
Forfeiture occurs when the lessee:
- Breaches an express condition
- Denies lessor's title (disclaimer)
- Is adjudicated insolvent
Conditions for valid forfeiture:
- Express condition broken, OR denial of title, OR insolvency
- Lessor gives written notice specifying the breach
- Notice requires lessee to remedy the breach (if capable of remedy)
- Reasonable time allowed for remedy
- Lessee fails to remedy within the time given
- ONLY THEN can lessor file suit for possession
Why (protection for lessee): Forfeiture is harsh it destroys the lessee's estate before the agreed term. Courts interpret forfeiture strictly against the lessor and liberally in favour of the lessee. The notice and opportunity requirements prevent surprise eviction.
Illustrations
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Forfeiture for breach (with cure opportunity): Lease says "Tenant shall not use premises for commercial purposes." Tenant starts a tuition centre. Landlord issues written notice: "You have breached the residential-use condition. Remedy within 30 days (cease commercial activity) or I will forfeit the lease." Tenant stops the tuition centre within 30 days. NO forfeiture breach cured. Landlord cannot evict.
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Forfeiture for denial of title (no cure possible): Tenant tells a third party: "I am the owner of this property. The landlord has no title." This is a disclaimer denial of lessor's title. Under S.111(g), this is a ground for forfeiture. Unlike other breaches, denial of title CANNOT be cured (you cannot un-deny title). Landlord can proceed to forfeiture immediately after notice.
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Waiver of forfeiture (S.112-113): Tenant breaches a condition. Landlord knows of the breach but continues to accept monthly rent for 6 months without objection. Under S.113, acceptance of rent after knowledge of forfeiture = waiver. Landlord has impliedly forgiven the breach. Cannot now claim forfeiture based on the same breach.
Recall Check
- What is the lessor's implied covenant of quiet enjoyment under S.108(c)?
- Name five modes of termination of a lease under S.111.
- What conditions must be satisfied before a lessor can forfeit a lease under S.111(g)?
Key Cases
Ganga Dutt Murarka v. Kartik Chandra Das (1961) Ganga-Dutt-Murarka-v-Kartik-Chandra-Das-1961 Issue: Whether a lessee's denial of lessor's title constitutes an automatic forfeiture or requires action by the lessor. Rule: Denial of title is a ground for forfeiture (S.111(g)), but forfeiture is not automatic. The lessor must elect to terminate; until the lessor acts, the lease subsists. Held: Forfeiture for denial of title requires: (a) clear and unambiguous denial, (b) lessor's election to terminate (not just knowledge of denial), (c) suit for possession or notice of termination. The lease does not terminate by itself upon the lessee's denial.
Distinctions
| Basis | Forfeiture (S.111(g)) | Surrender (S.111(e)-(f)) |
|---|---|---|
| Who initiates | Lessor (against lessee) | Lessee (yields up to lessor) |
| Cause | Lessee's breach / denial of title | Mutual agreement / implied by new lease |
| Consent | Lessee's consent not needed | Both parties must agree (or be implied) |
| Effect | Lease terminated; lessee evicted | Lease terminated; lessee voluntarily leaves |
| Cure possible | Yes (for most breaches) | N/A |
| Waiver | Lessor can waive (S.112-113) | N/A |
| Harshness | Punitive (against lessee) | Consensual (no penalty) |
| Basis | Termination by Notice (S.111(h)) | Forfeiture (S.111(g)) |
|---|---|---|
| Cause | No breach required; simply end of periodic term | Lessee's wrongdoing |
| Who gives notice | Either party | Lessor only |
| Notice period | S.106 (15 days / 6 months) | Reasonable time to cure |
| Effect | Lease ends at notice expiry | Lease ends on failure to cure |
| Reason required | No reason needed | Specific breach must be identified |
Flashcards
Q: What is the lessor's covenant of quiet enjoyment (S.108(c))? A: The lessee shall not be disturbed in possession by the lessor or anyone claiming through the lessor during the subsistence of the lease.
Q: Can a lessee sublet or assign the leasehold? A: Yes, under S.108(j), unless the lease expressly restricts or prohibits it.
Q: What is "forfeiture" under S.111(g)? A: Termination of lease by the lessor for lessee's breach of an express condition, denial of lessor's title, or insolvency.
Q: What must a lessor do BEFORE forfeiting a lease? A: (1) Give written notice specifying the breach, (2) Require the lessee to remedy within reasonable time, (3) Only if lessee fails to remedy can the lessor proceed. Notice and opportunity are MANDATORY.
Q: What constitutes "waiver of forfeiture" under S.113? A: Lessor accepts rent after knowledge of the breach. Acceptance of rent = deemed waiver. Lessor cannot forfeit for that breach thereafter.
Q: Does forfeiture operate automatically? A: No. Per Ganga Dutt Murarka (1961), the lessor must elect to terminate. The lease subsists until the lessor affirmatively acts.
Q: Does forfeiture of a lease operate automatically on breach? A: No. The lessor must elect to terminate (serve notice + take action); breach alone does not end the lease.
Exam Scenario
L leases a flat to T for 3 years with a condition: "T shall not keep pets." T adopts a dog 6 months into the lease. L discovers this after 2 months and continues accepting rent for 4 more months. L then issues a notice of forfeiture. Advise.
Approach: (1) T breached the express condition (no pets). (2) L discovered the breach. (3) After discovery, L accepted rent for 4 months without objection. (4) Under S.113, acceptance of rent with knowledge of breach = waiver of forfeiture. L has impliedly waived the right to forfeit based on this breach. (5) L cannot now issue forfeiture notice for the pet breach already waived. (6) However: if T acquires ANOTHER pet (fresh breach) or commits a new breach, L can issue fresh notice for that breach. The waiver applies only to the specific breach known and condoned. (7) Alternatively, if T's pet causes damage to property (waste under S.108(n)), that is a SEPARATE ground not waived.
Problem: Priya (owner) enters a written agreement with Raj: "Priya permits Raj to use Room No. 5 in her building for his business for 2 years at Rs.15,000/month. Priya retains the right to enter the room at any time and can revoke this permission with 7 days' notice." Raj argues this is a lease and he cannot be evicted without following due process. Priya argues this is merely a licence. Determine the true nature of the transaction and advise both parties.
Illustrations (from consolidated notes)
- Forfeiture (S.111(g)): Lease clause: "Lessee shall not sublet." Lessee sublets without permission. Lessor can elect to forfeit the lease. But forfeiture does not happen automatically; lessor must take positive action (notice + court proceedings).