leases how made
Section 107 of the Transfer of Property Act, 1882 deals with leases how made. 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. The Act came into force on 01 Jul 1882.
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.
1[All other leases of immoveable property may be made either by a registered instrument or by oral agreement accompanied by delivery of possession.
2[Where a lease of immoveable property is made by a registered instrument, such instrument or, where there are more instruments than one, each such instrument shall be executed by both the lessor and the lessee:]
Provided that the State Government may, 3 *** from time to time, by notification in the Official Gazette, direct that leases of immoveable property, other than leases from year to year, or for any term exceeding one year, or reserving a yearly rent, or any class of such leases, may be made by unregistered instrument or by oral agreement without delivery of possession.]
Section 107, The Transfer of Property Act, 1882 (Act 4 of 1882).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Samir Mukherjee vs Davinder K. Bajaj
Court's Decision & Legal Precedent
A lease of immovable property for agricultural or manufacturing purposes, governed by Section 106 of the Transfer of Property Act, will be deemed to be a year-to-year lease terminable by 6 months notice only if it constitutes a valid lease under Section 107. Section 107 mandates that any lease from year to year or for any term exceeding one year must be created by a registered instrument. In the absence of a registered instrument, no valid year-to-year lease can be created, and therefore an oral lease for manufacturing purposes remains a month-to-month tenancy terminable by 15 days notice. The rule of construction in Section 106 applies only to valid leases; its application presupposes the existence of a valid lease as required by Section 107.
On this section: Section 107 prescribes that a lease from year to year or for any term exceeding one year can be made only by a registered instrument. The Court held that in the absence of a registered instrument, no valid year-to-year lease can be created, and therefore Section 106 cannot be applied.
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Sevoke Properties Pvt. LTD vs West Bengal State Eletrictiy Distribution Company Limited
Court's Decision & Legal Precedent
When an unregistered lease agreement for a term exceeding one year is expressly admitted by the tenant in its written statement to have been for a specific term that has expired, the lease determines by efflux of time under Section 111(a) of the Transfer of Property Act without requiring a formal notice under Section 106. The tenant's status upon expiration of the admitted term becomes that of tenant at sufferance, and the filing of an eviction suit itself constitutes sufficient notice to quit. Therefore, no separate notice under Section 106 is mandatory for maintaining an eviction suit in such circumstances.
On this section: Establishes that lease of immovable property for term exceeding one year can only be made by registered instrument. Unregistered lease is governed by first paragraph of Section 107, creating monthly tenancy under second paragraph.
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State of H. P vs Shivalik Agro Poly Products
Court's Decision & Legal Precedent
The validity of a fee notification issued by the State Government under Section 78 of the Registration Act must be tested by examining whether there is a reasonable relationship (not mathematical exactitude) between the aggregate fee collections and aggregate services rendered across the entire class of contributors. A fee does not cease to be valid merely because: (a) it is collected on a graduated scale based on the value or consideration of instruments; (b) individual recipients receive services disproportionate to fees paid; (c) the collections are credited to the Consolidated Fund of the State rather than a separate fund, as mandated by Article 266 of the Constitution; or (d) the State does not segregate and exclusively allocate fees to registration department expenditure. The test of correlation is to be reckoned at the aggregate level examining totality of services against totality of receipts across the entire registration system, not at the individual level.
On this section: Requires lease of immoveable property for more than one year to be made by registered instrument
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… We find that in the cases before us, the appellants have relied on the written instruments or rent receipts issued by the landlord to the tenant. Section 107 of the Transfer of Property Act provides that a lease of immovable 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" and all other leases of immovable property may be made either by a registered instrument or by oral agreement …
Questions about Section 107
What have the courts held on Section 107 of the Transfer of Property Act?
Samir Mukherjee vs Davinder K. Bajaj (18 Apr 2001) is the leading judgment on this section among those set out below: Section 107 prescribes that a lease from year to year or for any term exceeding one year can be made only by a registered instrument. The Court held that in the absence of a registered instrument, no valid year-to-year lease can be created, and therefore Section 106 cannot be applied. Another 2 judgments on this section are set out below, all of them from the Supreme Court. They run from 2001 to 2019.
How do I find court cases under Section 107 of the Transfer of Property Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: TP Act 107, section 107 TP Act, section 107 of the Transfer of Property Act. People searching for it also type 107 tpa act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 3 reported judgments on this section are set out on this page, beginning with Samir Mukherjee vs Davinder K. Bajaj (18 Apr 2001).
What should I read with Section 107 of the Transfer of Property Act, and has it changed?
5 other provisions in this corpus refer back to it.
When did Section 107 of the Transfer of Property Act come into force?
Section 107 of the Transfer of Property Act, cited as TP Act 107, came into force on 01 Jul 1882, having been enacted on 17 Feb 1882. It is in force as at the date shown on this page.
Other sections of this Act
- 55. Rights and liabilities of buyer and seller1096 words
- 108. Rights and liabilities of lessor and lessee1030 words
- 69A. Appointment of receiver892 words
- 3. Interpretation-clause658 words
- 35. Election when necessary614 words
- 58. Mortgage , mortgagor , mortgagee , mortgage-money and mortgage- deed defined554 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.