Effect of holding over
Section 116 of the Transfer of Property Act, 1882 deals with effect of holding over. If a lessee or under-lessee of property remains in possession thereof after the determination of the lease granted to the lessee, and the lessor or his legal representative accepts rent from the lessee or under-lessee, or otherwise assents to his continuing in possession, the lease is, in the absenc The Act came into force on 01 Jul 1882.
If a lessee or under-lessee of property remains in possession thereof after the determination of the lease granted to the lessee, and the lessor or his legal representative accepts rent from the lessee or under-lessee, or otherwise assents to his continuing in possession, the lease is, in the absence of an agreement to the contrary, renewed from year to year, or from month to month, according to the purpose for which the property is leased, as specified in section 106.
Illustrations
(a) A lets a house to B for five years. B underlets the house to C at a monthly rent of Rs. 100. The five years expire, but C continues in possession of the house and pays the rent to A. C's lease is renewed from month to month.
(b) A lets a farm to B for the life of C. C dies, but B continues in possession with A's assent. B's lease is renewed from year to year.
Section 116, 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.
This section refers to
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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C. Albert Morris vs K. Chandrasekaran
Court's Decision & Legal Precedent
The word 'right to the site' in Rule 153(1)(i) of the Petroleum Rules, 1976 means a legal right to continue in possession of the site, not mere physical possession or juridical possession. A tenant holding over after lease expiry, despite continued occupation and payment of money to the landlord, does not acquire a legal right to the site unless the landlord has expressly or impliedly consented to a fresh tenancy. Mere acceptance of rent by the landlord after lease expiry does not create a fresh tenancy under Section 116 of the Transfer of Property Act; both the landlord's intention to assent to continued possession and the tenant's offer must concurrently operate. Lawful possession requires a legal right to possess the property and cannot be equated with juridical possession or litigious possession. Therefore, a tenant at sufferance has no legal right to the site for purposes of license renewal under the Petroleum Rules.
On this section: Creation of fresh tenancy by holding over - the Court held that a new tenancy is created only when the landlord assents to the continuance of the erstwhile tenant, and such assent cannot be assumed merely from acceptance of rent without evidence of intention
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Shanti Prasad Devi vs Shankar Mahto
Court's Decision & Legal Precedent
When a lease deed contains specific clauses prescribing the mode and conditions of renewal (constituting 'agreement to the contrary' within Section 116 of Transfer of Property Act), mere acceptance of rent by the lessor after expiry of the original lease period does not result in deemed renewal of the lease or 'holding over' by the lessee. The option of renewal must be exercised strictly in accordance with the terms prescribed in the lease deed, including exercise before expiry of the original lease period. Failure to comply with these prescribed conditions precludes both implied renewal through holding over and specific performance of the renewal agreement.
On this section: Effect of holding over - Court held that mere acceptance of rent after lease expiry does not constitute 'assent' to continuance when specific renewal clauses exist in lease deed. The renewal clauses constitute 'agreement to the contrary' within Section 116, preventing automatic deemed renewal.
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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: Relates to tenant holding over. Distinguished from tenant at sufferance. Court held that tenant holding over requires Section 106 notice, but tenant at sufferance does not.
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.
Questions about Section 116
What have the courts held on Section 116 of the Transfer of Property Act?
C. Albert Morris vs K. Chandrasekaran (26 Oct 2005) is the leading judgment on this section among those set out below: Creation of fresh tenancy by holding over - the Court held that a new tenancy is created only when the landlord assents to the continuance of the erstwhile tenant, and such assent cannot be assumed merely from acceptance of rent without evidence of intention. Another 2 judgments on this section are set out below, all of them from the Supreme Court. They run from 2005 to 2019.
How do I find court cases under Section 116 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 116, section 116 TP Act, section 116 of the Transfer of Property Act. People searching for it also type tpa 116 amplifier and tpa 116x. 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 C. Albert Morris vs K. Chandrasekaran (26 Oct 2005).
What should I read with Section 116 of the Transfer of Property Act, and has it changed?
Its own text turns on section 106 (Duration of certain leases in absence of written contract or local usage), so none of them can safely be read on its own.
When did Section 116 of the Transfer of Property Act come into force?
Section 116 of the Transfer of Property Act, cited as TP Act 116, 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 14 Oct 2026. This page is not a substitute for legal advice.