Rights and Duties of the Lessor and Lessee
Introduction
In a lease, both the lessor (landlord) and the lessee (tenant) have specific rights and duties. These are laid down under Section 108 of the Transfer of Property Act. The law ensures fairness by balancing the interests of both parties during the lease period.
Meaning / Definition
Rights and duties of the lessor and lessee refer to the legal obligations and benefits that arise out of a lease agreement. These rules define how the property should be used, maintained, and returned.
Types of Rights and Duties
Rights and Duties of the Lessor (Landlord)
Disclosure of Defects
The lessor must inform the lessee about any important defects in the property, especially hidden defects (latent defects) that the lessee cannot easily discover.
Delivery of Possession
The lessor must give the lessee possession (control and use) of the property.
Covenant of Quiet Enjoyment
If the lessee pays rent regularly, the lessor must ensure that the lessee can enjoy the property peacefully without disturbance.
Rights and Duties of the Lessee (Tenant)
Right to Accretions
If any addition (increase in land or benefit) happens to the property, the lessee has the right to enjoy it.
However, land newly formed (like by river deposits) is not always treated as accretion.
Right to Avoid Lease (Voidable Lease)
If the property is destroyed or seriously damaged due to fire, flood, violence, or similar causes (not caused by the lessee), the lessee can choose to end the lease.
Right to Sub-Lease
The lessee can sub-lease (rent to another person) unless the lease agreement prohibits it.
Right to Fixtures
The lessee can remove things attached to the property (fixtures), provided it does not cause damage.
Right to Repairs
If the lessor fails to repair the property, the lessee can:
- Make repairs after giving notice, and
- Deduct the cost from rent or recover it from the lessor
Right to Make Payments on Behalf of Lessor
If the lessor does not pay necessary charges (like taxes), the lessee can pay them and recover the amount.
Right to Ingress and Egress
The lessee has the right to enter (ingress) and leave (egress) the property freely and take away any crops grown.
Duties of the Lessee
Duty to Restore Property
The lessee must return the property in the same condition as received, except for normal wear and tear (natural usage damage).
Proper Use of Property
The lessee must:
- Use the property only for the agreed purpose
- Not damage the property
- Not cut trees or destroy structures
No Permanent Structures
The lessee should not build permanent structures unless it is for agricultural purposes.
Payment of Rent
The lessee must pay rent as agreed in the lease.
Important Case Law
- Spenser's Case
- Katyayini Devi v. Udaya Kumar
Practical Example
A takes a shop on lease from B. Due to mob violence, the shop is destroyed by fire. A is not responsible for the damage. In this case, A can choose to end the lease, and B cannot demand compensation from A.
Summary
- Lessor must disclose defects and give possession
- Lessee has the right to peaceful use if rent is paid
- Lessee can end the lease if property is destroyed without fault
- Lessee can repair, pay dues, and recover costs if lessor fails
- Lessee must use property properly and return it in good condition
- Sub-leasing is allowed unless restricted
- Rent payment is a core duty of the lessee