A lease and a license can be distinguished from each other, a lease is a transfer of right to enjoy the property whereas a license does not transfer any kind of interest in the property nor it has any right to possession. Lease is defined under section 105 of Transfer of property Act 1882.

A lease of immovable property is a transfer of a right to enjoy such property for a certain time (express or implied), or in perpetuity in consideration of

i. a price paid or promised, or

ii. money,

iii. a share of crops,

iv. service, or

v. 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.

In case of lease price is called the premium and the money, share, service or other thing to be rendered is called the rent. Lease is a transfer of an interest in the property for a stipulated period of time without transferring the ownership of that property. In a lease, right of possession is transferred instead of the right of ownership. The transferor is called LESSOR, and the transferee is called LESSEE.

 LESSOR- The transferor must be competent to contract and he must have title or authority.

 LESSEE- The transferee who is called LESSEE must be competent to contract at the dates of execution of the lease. A sale or a mortgage to a minor is valid, but lease to a minor is void, as the lease is to be executed by both the parties that is transferor or lessor and the transferee or lessee.

Rights of a lessor

1. Right to accretions
2. Right to collect rent

Liabilities of a lessor

1. Duty of disclosure- Latent defect and Apparent defect
2. To give possession
3. Covenant for quiet enjoyment

Rights of a lessee

1. To charge for repair
2. Right to remove fixtures
3. Right to assign his interest
4. Right to have benefits of crops

Liabilities of a lessee

1. Duty to disclose material facts
2. Duty to pay rent
3. Duty to maintain the property
4. Duty to give notice
5. Duty to use the property in a reasonable manner
6. Duty not to erect any permanent structure
7. Duty to restore possession

CASE LAW:

1. In the case, RAJ KUMAR v. ALI MIA, AIR 1923 Cal. 192.

Where the title of the lessor is in danger, he may sue for a declaration of his rights and for a order giving him a formal possession as against the trespasser. It is under section 108(n) of TPA, 1882, to give notice. it is the duty of the lessee.

2. In the case, SURYA PROPERTIES Pvt. Ltd v. BIMLENDU NATH, (1963) 67 Cal.

W.N..977, What is a permanent structure is a question of fact depending on the nature of the structure and motive with which the property is erected. It lies under section 108 (p) of the TPA, 1882.

Way Forward

The rights and liabilities of the Lessee i.e the transferee are discussed. Through the rights and liabilities, it is clear that the lessee is bound to take reasonable care of the property and at the same time pay the rent. Lease is a temporary form of transfer and after a certain period of time the lessee has to give the possession to the lessor as mentioned in their deed. Lease of immovable property is a transfer where the lessee enjoys the possession of the property but not the ownership.

Aishwarya Says:

I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.

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