Friday, 3 June 2016

TENANCY BY HOLDING OVER AS UNDER TRANSFER OF PROPERTY ACT,1872



This article is targeted to discuss Tenancy by holding over as given under the Transfer of property Act, 1872.Tenancy by holding over has been guaranteed under 116 of the Act which states as :-
If a lessee or under-lessee of property remains in possession thereof after the determination of the lease granted to the lessee, and the lessor or his legal representative accepts rent from the lessee or under-lessee, or otherwise assents to his continuing in possession, the lease is, in the absence of an agreement to the contrary, renewed from year to year, or from month to month, according to the purpose for which the property is leased, as specified in section 106 “
This section enunciates the effect when the lessee or an under-lessee of a property stays in the possession after the determination of lease (also known as the termination of lease as mentioned under section 111 of the Transfer of Property Act,1872 ) and the lessor or his legal representative assent to the continuation in possession or accept rent thereof then the lease will be renewed as per the provision given under section 106 of the Transfer of Property Act ,1872 in the absence of any agreement to the contrary.
It is to be pointed here that the whole effect of this section is dependable on the assent of the lessor or his legal representative by the way of giving assent or accepting rent both ad idem. This clearly implies that there must be meeting of minds between the lessor or his legal representative and the Lessee or the under-lessee concerning the continuation of possession after the determination of lease. Hence, a mere acceptance of rent would not act as a sufficient ground to attract this section.

How is tenancy by holding over determined?
The essential ingredients in determining the tenancy by holding over are as follows:
·       The possession must be continued with the assent of the lessor or his legal representatives.
·       The consent must be definite in pursuance to the continuation of tenancy.
·       Consent or the assent must be consensus ad idem leaving no room for any loop holes and inadequate inferences.
·       Acceptance of the rent must always be in the clear recognition of the acceptance of tenancy.

 Tenancy-at-sufferance
In the above scenario the possession was continued since the determination of lease with the assent of the lessor or his legal representatives. Whereas, when a lessee or an under-lesssee happens to continue in the possession of the property since the determination of lease without the assent of the lessor or his legal representatives then this is termed as the tenancy at sufferance. The tenant at sufferance does not enjoy any legal title and can be subjected to ejectment without serving any notice.

Tenancy at will
Tenancy at will is a tenancy which is terminable at the will of either the landlord or his tenant. A tenancy at will can arise anytime by the implication of law with the consent of owner to continue in possession or, by an express agreement to pay compensation on day to day basis where the period of tenancy is not defined. One of the important differences between tenancy at will and tenancy by holding over is the power of alienation. Tenancy by holding over entitles the tenant to alienate tenancy however the same is not true in case of tenancy at will.

Tenancy at will is terminable /determined in the following manner:
  • ·       Terminable by either of the parties (Landlord or Tenant / lessee)
  • ·       Death or the landlord or the tenant/lessee.
  • ·       When a tenant puts the possession on sub lease /under lease.
  • ·       When the Tenant/ Lessee acts inconsistent with the will to continue.
  • ·       Alienation of tenancy.
Difference between tenancy by Holding over and tenancy-at-sufferance:-

Retention of possession:
Tenancy by holding over: With the consent of landlord or his legal representative
Tenancy- at-sufferance: No consent

Interest in the leasehold
Tenancy by holding over – Has some interest
Tenancy -at-sufferance – No interest

Power to alienate tenancy
Tenancy by holding over – Transferable and heritable
Tenancy-at-sufferance – Neither transferable nor heritable

Notice  for ejectment
Tenancy by holding over – Notice as with respect to provision U/S 106 of the act
Tenancy –at- sufferance – No notice required

Regards,
 Maitreyi Raghuraman

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