Negotiable Instruments: Exhaustive Coverage by Adv Roma Bhagat. Register Now!
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Azhagananth (Lawyer)     17 May 2023

Sub-lease status after termination of lease

For commercial purpose, X transferred a larger extent of lands to Y another company through registered lease deed with terms and conditions which includes resumption of lands clause on violations .  Also in the lease deed, Lessee was  given right to Sub-lease the lands.  

After 15 years, when Lessor found that, Lessee had voluntarily breached the terms and condition, issued show cause notice, conducted enquiry and terminated the Lease.

Meanwhile the Lessee has Sb-Leased the lands to 10 person. Now, what will be the status of the 10 Sub-lessee..?

Please discuss with case laws if any...


 3 Replies

T. Kalaiselvan, Advocate (Advocate)     17 May 2023

A breach of lease is when one party violates one or more of the conditions specified in that agreement.

As per section 105 of TP Act : A lease of immoveable property is a transfer of a right to enjoy such property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee, who accepts the transfer on such terms.

A lease is a transfer of partial interest (and not absolute interest) in an immovable property and not a transfer of ownership.

If the lessee losses the right to use the property by his own fault, forfeiture is said to take place. Notice is mandatory for the forfeiture.

This clause provides that a lease terminates by forfeiture in the following circumstances:- (a) in the case lessee breaks on express condition which provides that on breach of it, the lessor may re-enter the property, or (b) in case the lessee renounces his character as such by setting up a title in a third person or by claiming title in himself, or (c) the lessee is adjudicated an insolvent and the lease provides that the lessor may reenter on the happening of such event.

1 Like

Dr J C Vashista (Advocate)     18 May 2023

Is it not repeated query at:

Azhagananth (Lawyer)     18 May 2023

No sir... That link entirely differ from the query I asked....

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register