Law > Civil Laws > Transfer of Property Act > Liabilities and Rights of Lessor
Section 108 of the Act deals with the liabilities and rights of the lessor and lessee of immovable property. In this article, we shall discuss the liabilities and rights of lessor.
Section 108: Rights and liabilities of lessor and lessee.
In the absence of a contract or local usage to the contrary, the lessor and the lessee of immoveable property, as against one another, respectively, possess the rights and are subject to the liabilities mentioned in the rules next following, or such of them as are applicable to the property leased:
(A) Rights and Liabilities of the Lessor
(a) The lessor is bound to disclose to the lessee any material defect in the property, with reference to its intended use, of which the former is and the latter is not aware, and which the latter could not with ordinary care discover;
(b) the lessor is bound on the lessee’s request to put him in possession of the property;
(c) the lessor shall be deemed to contract with the lessee that, if the latter pays the rent reserved by the lease and performs the contracts binding on the lessee, he may hold the property during the time limited by the lease without interruption. The benefit of such contract shall be annexed to and go with the lessee’s interest as such, and may be enforced by every person in whom that interest is for the whole or any part thereof from time to time vested.
In Megh Lal v. Raj Kumar (1907) 34 Cal 358 case, the Court held that If the contract between the parties is silent in reference to matters dealt within the Section 108 of the Act, the law implies covenant to that effect. The covenants dealt with in the section need not be enumerated in the contracts. They are what are known as implied covenants as oppose to express covenants. When the parties regulate their contract in express terms, the latter would exclude the application of the provisions of the Section.
Liabilities of the Lessor
Liabilities of the lessor are laid down in Section 108(a) to Section 108(c)
- Section 108(a) lays down that the lessor has to disclose any material defect relating to the property which the lessee does not know and cannot with ordinary supervision find out. Thus lessor is under an obligation to reveal to the lessee all defects in the demised premises as are materials that is, such as would affect the use to which they are to be subjected by the lessee. There is no duty to disclose defects which are either known to the lessee or which the lessee would with ordinary care discover.
In Radha Krishna v. W. C. O. Flaherty (1869) 3 Beng LR 277 case, A lessor impliedly contracts with the lessee that premises are fit for the intended user. So where the plaintiff hired a dwelling house of the defendant, and in lighting a fire in the fireplace in one of the rooms, the chimney took fire, there was no vent, and the plaintiff’s furniture was destroyed, it was held that the defendant was liable for the loss.
In Keates v. Cadogan, (1851) 10 CP 591 case, the Court held that when the house is in a ruinous condition, there is no implied duty to inform the proposed tenant that it is unfit for human habitation and no action lies against the landlord.
In Syed Mukhtar v. rani Sunder Koer 17 C.W.N. 960 case, the Court held that a defect in the lessor’s title cannot be said to be a material defect in a property within the meaning of Section 108(a).
- Section 108 (b) lays down that the lessor is bound by the request of the lessee to give him the right of possession over his property.
In Harish Chander v. Mohinee Mohun case (1868) 9 WR 582 case, the Court held that a suit of rent will not lie when the lessee has not obtained possession.
In Munne Dutt v. William Cumpbell, (1869) 11 WR 278 case, the Court held that for in every case there is an implied contract that lessor will give peaceful possession of the land leased to the lessee.
In Pemmarazu v. The secretary of State of India, (1911) 34 Mad 108 case, the Court held that when the lessor is unable to put lessee in possession of area stipulated in the leases, he is liable to compensate the lessee by the way of damages.
- Section 108 (c) lays down that the lessor can enter into a contract with the lessee if he agrees to abide by all terms and conditions prescribed in the agreement, he can enjoy the property for the rest of the time period without any interference with an obligation to pay the rent later on.
In State Bank of Hyderabad v. Nehru Palace Hotels, AIR 1991 SC 2130 case, the Court held that a lease entails transfer of right to enjoy such property in respect of which a lease is made out for a defined time which is express or implied or even in perpetuity in consideration of price paid or promised to be paid in cash or anything of value which is to be rendered periodically or on specified occasions.
Rights of the Lessor:
Liabilities of Lessee are laid down in Sections 108(k) to Section 108(q), which can be considered as rights of lessor.
- Section 108 (l) lays down that the lessor has a right to recover the rent from the lease which was mentioned in the lease agreement.
- Section 108 (c) the lessor has a right to take back the possession of his property from the lessee if the lessee commits any breach of condition.
In Paritosh Ghosh v. Ashim Kumar Gupta, 2003 AIHC 291 (297, 298) (Cal) case, where the tenant made holes in walls for fixing air coolers, replaced brass water caps by plastic caps, in violation of leases agreement, the eviction of the tenant was held proper.
- Section 108 (m) lays down that the lessor has a right to recover the amount for damages from the lessee if there is any damage done to the property. This Section allows lessor and his agent during the term of the lease and at a reasonable time to enter upon the property and inspect its condition. The lessor is powered to give notice of any defect found and is entitled to make good, within three months after notice.
- Section 108 (q) lays down that the lessor has a right to take back the possession of his property from the lessee on the termination of the lease term prescribed in the agreement.
In Yashpal Lala Shiv Narain v. Allatala Tala Malik Waqf Ajakhan Mus, AIR 2006 All 115 (134) case, The provision in Section 108(q) of the Act in absence of any contract or local usage to contrary, overrates, is a statutory condition and is implied in every case.
In Sky Land International Pvt. Ltd. v. Kavita P. Lalwani, 2012 (191) DLT 594 (Del) case, the Court held that upon expiry of the term of the lease or termination of monthly leases by notice to quit, the lessee must vacate the property on his own and not wait for lessor to bring a suit where he can raise all kinds of contests in order to profit from Court delays.
In Santsaran v. Bankeylal Ramlal, AIR 1955 NUC 52 (MP) case, the Court held that even where the tenant has constructed a building on the land, the lessee’s obligation to restore possession to the lessor on the expiry of the leases is absolute.
In Hirabai v. Jivanlal, AIR 1955 Nag 134 (DB) case, the Court held that where the lessee wrongfully refuses to deliver possession, the lessee must pay damages to the lessor to the extent of the loss of rent suffered by latter during the period he remained out of possession.
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