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Lease

/liːs/

Property Law Term

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Definition

A transfer of the right to enjoy immovable property for a certain time in consideration of rent or premium. Defined under Section 105 of the Transfer of Property Act, 1882. The transferor is the lessor (landlord); the transferee is the lessee (tenant). Leases for more than one year must be by a registered instrument under Section 107 TPA. Distinct from a licence which confers only a personal privilege.

Examples

A landlord gives a tenant a 2-year lease of a shop for monthly rent of Rs. 20,000 — the landlord retains ownership; the tenant gets lawful possession.

A 99-year lease for a residential apartment must be by a registered instrument — an unregistered 99-year lease is invalid and unenforceable.

Case Study

In Associated Hotels of India v. R.N. Kapoor (1959), the Supreme Court held that the decisive criterion distinguishing lease from licence is exclusive possession — a grant of exclusive possession is a lease even if labelled a licence.

Key Cases

Associated Hotels of India v. R.N. Kapoor

1959

AIR 1959 SC 1262

Exclusive possession is the test to distinguish lease from licence. A grant of exclusive possession is a lease even if called a licence. Foundational Indian authority on the lease-licence distinction.

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Also Known As

tenancyleasehold

Synonyms

tenancyrental agreementlicense to occupyleasehold

Antonyms / Opposites

licenceownershipsale

Related Terms

Transfer of Property Act 1882Section 105 TPAlicencelessorlesseeRent Control Acteviction

Dictionary Entry

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