Made By1.

Chanda Tehlan(00216503811)
B.A,LL.B(6TH Sem.)
2.Sumeet(00316503511)
B.B.A,LL.B(6TH Sem.)

Definition
Essential elements of a lease
Types of lease
Leases in perpetuity
Distinction between lease and licence
Distinction between lease and easement
Duration of leases in absence of written
contract
Leading case laws

Section 105 in The Transfer of Property Act, 1882

105. Lease defined.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. Lessor, lessee, premium and rent defined.
The transferor is called the lessor, the transferee is called
the lessee, the price is called the premium, and the
money, share, service or other thing to be so rendered is
called the rent.

A lease is an agreement whereby the lessor conveys

to the lessee in return for a payment or series of
payments the right to use an asset for an agreed
period.

The Parties: Both parties i.e,lessor and the lessee

must be competent to contract.A lease cannot be
created be created without any express or implied
contract between two parties.

Subject-matter: The subject-matter of a lease must

be immovable property.

Duration: The right to enjoy the property must be

transferred for a certain time or in perpetuity.

Consideration: The consideration is either premium or

rent. Premium is the price paid or promised to be
paid in lump sum.

On the basis of quality of interest of transferor:1. Absolute lease

2. Derivative lease

Absolute lease is granted by a person who has an

absolute right over the property. It can be granted for
any number of years.
Derivative lease is granted by a person who himself
has a limited interest in the property.

On the basis of duration:1. Lease for a specific time

2.Periodic lease
3.Lease in perpetuity

It is lease of permanent nature. In India,

such leases created either by an express
grantor or by a presumed grant. Such leases
are generally agricultural leases or that
leases executed before the enactment of T.P
Act. The burden of proving perpetuity of
tenancy is on the tenant. He is to prove the
existence, the nature and the extent of the
interest which the owner has granted to him.

A lease or a licence is a contractual

agreement between Council (lessor or
licensor) and another party (lessee or
licensee) that binds both parties to the terms
of the Agreement.

Lease

A Lease is a transfer of right to enjoyment (exclusive possession)

of that property by the lessor the lessee, made for a certain term
in consideration of a fee subject to the terms set out in the lease
agreement.
A lease grants exclusive possession for a fixed period (term).
A lease creates an interest in the land which can be transferred
to the lessee for the period of the lease.
A lease can be transferred (assigned) to another party and if
registered on the title is binding on a new owner of the land.
A lease is not revocable (other than subject to any conditions set
out in the lease (e.g. a redevelopment clause)

Licence

A Licence is the granting of a permission to

use the land in consideration of a fee subject
to the conditions set out in the licence
A licence does not grant exclusive
possession.
A licence does not create or transfer an
interest in the land.
A licence is not transferable.
A licence is revocable.

By a lease the owner of the land retains his

ownership but parts with possession. The
lessee is entitled to possess the land to the
exclusion of all others. But by granting of an
easement the owner of the land retains not
only his ownership but also his possession.

In absence of a contract a lease of immovable property for

agricultural or manufacturing purposes shall be deemed to
a lease from year to year, terminable, by six months notice
expiring with the end of a year of the tenancy.
Lease of immovable property for any other purpose shall
be deemed to b a lease from month to month, terminable,
by fifteen days notice expiring with the end of a month of
the tenancy.
Every notice must be in writing, signed by or on behalf of
the person giving.
Section 106 enables both the lessor and lesse to work out a
plan for themselves.
Case- Ram kumar das vs. Jagdish chandra(1952 SCR 269)
SC held sec 106 lays down a rule of construction which is
to b applied when there is no period agreed upon
between the parties.

Associated hotes vs. R.N.Kapoor (AIR 1962 SC

1262)

Quality cut pieces vs. M lakshmi and co.(AIR 1986

BOMB. 359)

Delta int ltd. Vs. S.S Ganeriwalla(AIR 1999 SC 2607)

B.V Dsouza vs. A.F Fernandes (AIR 1989 SC 1816)