Whether the lease is treated as month-to-month tenancy if the lease deed is unregistered?

(a) Unregistered Lease Deed:

17. As Section 107 of Transfer of Property Act mandates, “a lease of immoveable property from year to year, or for any term exceeding one year or reserving a yearly rent, can be made only by a registered instrument.” Section 17 (1) (d) of the Registration Act, the leases of immovable property from year to year, or for any term exceeding one year, or reserving a yearly rent must be registered. Then, Section 49 of the same Act clearly provides

that a document purporting to be a lease and required to be registered under Section 17 will not be admissible in evidence if the same is unregistered. True, the proviso to this section allows that unregistered lease deed to be looked into for collateral

purposes. But neither the duration of the lease nor its renewal is a collateral purpose; it is one of its core purposes. So, cumulative effect of Section 107 of the Transfer of Property Act, Section 35 of Stamp Act, Sections 17 and 49 of the Registration Act is that an unregistered lease deed as relied on by the Corporation cannot be looked into. The Corporation’s possession admitted,

the very lease must be treated as month-to-month tenancy. Thus, the Corporation has no basis for the renewal of the lease.

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

CIVIL APPELLATE JURISDICTION

SECOND APPEAL NO. 359 OF 2014

IN

REGULAR CIVIL APPEAL NO. 257 OF 2005

IN

REGULAR CIVIL SUIT NO. 1461 OF 1995

Bharat Petroleum Corporation Ltd. Vs Shri Champalal Vithuram Jajoo

 

CORAM : DAMA SESHADRI NAIDU, J.

Dated : 27th April 2020.

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