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Lease: Rights and Liabilities of Lessee

Meaning and essentials of Lease

The lease is a kind of method of transmitting estate and the limitation is for a specific term of duration. It is of the concept which involves the transmitted interest in the land with the limitation of duration excluding the transmit of title on that land. On this process, the privilege of custody is transmitted rather than the privilege of holding the property. The person who transmits the land is termed as lessor and the one to whom the land is transmitted is termed as lessee with including the specific duration.

It must be noted that it is a very general context that is utilized in with conduct of property or estates. Therefore, if an individual is intent for sublet his apartment or his land then the individual will choose for leasing it out. Unexpectedly, individuals skip out on minor facets of a contract document or lease deed and it affects a commotion.

It would be sensible for a leaseholder and owner of the property to be cautious of their privileges, obligations and responsibility so that they can prevent any hurdle and can take benefit from a unified change where the property-owner guards his benefits or interest and a renter acquires to enjoy the land he lent.

Notion of Lease

It essentially involves when an individual through the way of a deal or an agreement expresses or leases his land to somebody including the specific term of a period in exchange of a periodical reasonable remittance.

Illustration: X rented his property to C with the period of 1 year for regular remittance (period-wise) Rs. 15000 p.m.

The explanation of lease is mentioned under Sec.105 in the act[1]and it includes to provide rent of the permanent land to which its privileges are moved to acquire the land, is only valid on the definite period, whether in the way of express or implied.

This is to be noted that there are key words in the whole topic which essentially covers the context of lease of permanent property and they are as mentioned under:
  1. The person who makes the transfer and who provides the right to acquire the permanent property is known as lessor
  2. The person who receives such right by the lessor to enjoy the permanent property for a period of time is known as lessee.
  3. The value made by the lessee to the lessor for acquiring a rent in the permanent property is known as Premium.
  4. The amount or use that is provided is termed as rent.

Ingredients of legitimate Lease

As we are now familiar with the fact of about the meaning of lease and its provision in the act. It is to be noted that further on the context of the legitimacy of the lessor and lessee in lease the following essentials are certain basic points that are required to be satisfied and that is:

On the Test of Capability:
On the context of capacity, owner of the land and rentee should qualify, for the context to compose an agreement for the lease as there are few essentials that need to be followed for a deed to be valid and for that competency they are required to be:
  1. That for the valid lease, together lesser and lessee must have similar interest towards entering into deed for the lease.
  2. That for the valid lease, the lessor should hold the ownership and power to create and produce the lease.
  3. That for the valid lease, lessee should be above the age of majority.

Issue of the matter:

That the issue of the matter of the lease should be permanent property, in the sense that the topic of the matter from which the issue raised should be of permanent property.

That for a valid contract, there should involve an element with respect to some payment pertained on it, if an agreement is produce excluding payment of the rent then the lease is invalid according to law and the same will be recognised as a gift to the lessee in the eyes of law.

That a rent agreement for a permanent property will be produced for the term of 11m[2]. If the period goes beyond a year that is 12m, or further then a lease contract can only be produced by a listed instrument as according to S.107 of the TPA[3].

Providing of the contract and its acceptance:
That the lessor should provide the agreement and the lessee should receive and approve the contract with no type of unnecessary pressure, intimidation. As soon as lessee agrees to the contract, the lease would turn out to be lawful and legitimate in the eyes of law.

Rights and Liabilities of Lessee

That every right is followed by some liabilities and restrictions for the one enjoying the benefit out of it. On this context the rights and liabilities has been delivered to the rentee and the owner of the land which are given to them by the provisions of law that is TPA. The below mentioned points are in context of it.

Rights of Lessee

  1. Cost for restoration:
    As the property requires maintenance for the use of an individual & the responsibility has been provided to the owner of the land to maintain the land. In case, if lessor lacks to maintain or to restore any material in the house which the lessor is necessarily to provide, in that situation the lessee can fix such reparation by his own expenditures then, in that situation, the privilege has been provide to the lessee to subtract such cost of the expenses out of the rent/rentee can just ask the owner of the land for the cost of those reparation
  2. Privilege of eliminating fittings and attachments:
    That a privilege to remove fittings or attachments of the permanent property has been granted to the lessee. This is to be noted that only during his(lessee's) period of time, he (lessee) has the right to do so, though, after expiry the lease document the lessee should leave the land in the previous situation it was before and if he neglects to do so then the lessor have the right to go to court against him.
  3. Privilege to transfer his benefit:
    That the lessee can completely shift his benefit to the other person. Though, in the situation of rent document limits rentee of giving it's benefit on this contact, rentee is forbidden to act like that and on same time after the shift of the rights this is to be noted that the lessee will still be liable for all the liabilities associated to the lease document.
  4. Additional benefit:
    That when the lessee is unsure about the time period, then in that situation, the lessee or his lawful reps has been granted the privilege to obtain enjoyment by receiving from all the crops grown-up by them.

Provisions: Mentioned under sec. 108(d) to 108(j) of TPA, 1982 are:

  • Sec. 108(d):

    That for the period of the ongoing time of lease if any accord is made then the accession or space will be taken below such lease
  • Sec. 108 (e):

    That throughout the on-going period of rent, if the substantial portion of the land demolished whole/partly by any means and it turns out to be forever unsuitable for the utilize for which it is to be made, then it develops null and void at the choice of the lessee. Though, in the situation of damage is affected because of the defaulting commission of rentee, then he cannot gain himself from the advantage of the requirement.
  • Sec. 108 (f):

    That throughout the on-going period of lease, if The lessor evades to make any maintenances to the property which he has the duty to do on a appropriate time even after notification, and if such maintenances is made by the lessee himself, then he has a privilege to subtract such expenditures from the rental or can recuperate from the lessor.
  • Sec. 108 (g):

    That if the owner of the land prevents making such sum of amount which an owner of the land is required to produce and in the situation where the amount is produced from the rentee/retrieved against property, then the owner of the land have right to regain it from the lessor or can subtract it
  • Sec. 108 (h):

    That the person to whom the land is provided for rent, having a privilege to eliminate all those stuffs which that person (rentee) has affixed with the ground, also the condition is imposed on the rentee that person has to leave the land in such a situation on the same way it was before when the land is provided to him.
  • Sec. 108 (i):

    That on the situation of while a land is rented, is of such period which is not stated otherwise, excluding the default of the owner of the land, then the owner or it's legal representative having a privilege of collecting whole of the harvests which he has implanted, sown or increasing by the lessee at the lease property and they are free to entrance and way out from such property.
  • Section 108 (j):

    That the owner of the land obtaining a right to shift the land completely or any element of his benefit by the way through mortgage. But by such justification, a lessee cannot by any means-ends himself from the obligations which are affixed to the rented property.

Liabilities of the Lessee

  1. Obligations to divulge relevant facts relating to property:

    That the person to whom the land is provided for the land is obliged with the responsibility of notifying the owner of the land, of all significant detail which the rentee got to know about & at same time the owner of the land doesn't know about it. On a situation where the owner of the land doesn't reveal those details and the owner of the land undergoes with the damage then the person to whom the land is provided for rent is obliged of providing reimbursement to the owner of the land
  2. Obligation of providing rental amount:

    That the lessee is obligated to give the rental amount to the owner of the land or its lawful representative in an appropriate period and appropriate location, according to the conditions agreed in the rental document. On this situation where the person to whom the land is provided for rent, is unable to proceed of providing the rental amount, on this concerning situation the owner of the land can remove the person to whom the land is provided for rent due to the reason of the reimbursement of rent which the rentee doesn't provided. Also, in this situation, lessor can take action by filing a case against the lessee for debts of rental amount.
  3. Obligation to preserve:

    That the one to whom the land is provided for rent, is obliged with the duty concerning the preservation of the permanent land in a decent situation similarity to that situation when the person was handed control with respect to the house. The owner of the land or it's legal representative is permitted with the purpose of examine land on fair basis. Merely an adjustments affected from the powerful pressures could be excluded with the context of obligations.
  4. Obligation to provide notification:

    That if the person to who such land is provided for rent receives to find an information regarding that any somebody attempted /attempting with the intention of harming privileges of the owner of the land/ the tittle of the of the owner of the land is imperilled concerning to this situation the one who to whom the land is provided for rent should deliver the notification to the owner of the land.
  5. Obligation for utilization the land in an adequate way:

    That the one to whom the land is provided for rent should utilize the land with the feeling that the land in which he is living is his personal land.
  6. Obligation of not to build or construct:

    That the obligation is provided to the lessee with no right to construct anything concerning of a lasting nature in the land excluding the issue or matter of farming without acceptance of the lessor.
  7. Obligation to re-establish the control over the property:

    That furthermore authorisation of the one to whom the house is provided for rent, he should re-establish control the land to the owner of the property. In a situation where the person to whom the land is provided for rent doesn't leave property also if the notification is terminated, the he is subsequently obliged to reimburse of all losses.

Provisions- Liabilities with regards to the lessee towards the property or against the lessor

  • Sec. 108 (k):

    That the one to whom the house is provided for rent. Is mandatory obliged to to divulge whole relevant facts which result to raise concern or the importance which lessee and the lessor is not known to
  • Sec. 108 (l):

    That the one to whom the house is provided for rent, is mandatory obliged to reimburse the payment or the rental amount to the lessor or his representative on a fair period.
  • Sec. 108 (m):

    That the one to whom the house is provided for rent, is mandatory obliged to protect the land the appropriate situation and on the expiry of the lease re-establish all such things in such a way as it was at the time when he was in possession.
  • Sec. 108 (n):

    That if lessee is known about the fact regarding to any proceeding's contrary to the land or any intrusion or any intervention is performed, then lessee is under duty to give notification to the lessor
  • Sec. 108 (o):

    That lessee consuming the privilege to utilize the resources or properties which are located in the land as a normal common sensed individual use it as it his personal object but, he is under duty of not to utilize or authorize any other individual to operate the land in any additional way or other then the reason for the land is leased.
  • Sec. 108 (p):

    That lessee cannot without the accent of the lessor carried out any form apart from the use for the farming objective.

By the above submission, the rights and liabilities of the lessee is crystal clear. As we discussed it with the explanation in detail with provision, this is to be noted that the role of lessor and lessee are important factor of the concept of lease. Without the two, the lease is invalid in the eyes of law.

In the context of privileges and it's obligations of the one who maintain such custody during the particular period, it is clear that not only lessor but lessee also holds significant privileges and obligation. From maintaining the whole property with due care and without negligence too provide notification regarding the harm if attempted by anyone to lessor, the lessee must inform lessor about the same. This is a scenario which provides that how the role of lessee affects the entire cycle of lease with its privileges and obligations.

  1. Section 105- TP Act, 1882
  2. 11 months
  3. Section 107 of the TP Act, 1882

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