Section 106: Duration of certain leases in absence of written contract or local usage

Transfer of Property Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1882
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Legal Commentary & Landmark Judgments: Section 106

Section 106 of the Transfer of Property Act, 1882 governs the statutory duration of leases in the absence of a written contract, establishing the mandatory requirements for notices to quit.

  • Statutory Notice Durations: Section 106 provides that in the absence of a contract or local law, a lease of immovable property for agricultural or manufacturing purposes is terminable by six months' notice, and a lease for any other purpose is terminable by fifteen days' notice.
  • 2002 Amendment Curative Proviso: Under sub-section (3), a termination notice cannot be held invalid merely because the notice period falls short, provided the suit or proceeding is instituted after the full statutory notice period has elapsed.
Key Landmark Precedents:
  • V. Dhanapal Chettiar v. Yesodai Ammal (1979) 4 SCC 214: A 7-judge Constitution Bench held that in premises governed by State Rent Control Acts, service of a contractual notice to quit under Section 106 is not a mandatory prerequisite for seeking eviction on statutory grounds; rent control legislation provides independent protection against eviction.
  • Anthony v. K.C. Ittoop & Sons (2000) 6 SCC 394: The Supreme Court held that where a lease for more than one year is unregistered and void under Section 107, payment and acceptance of monthly rent creates a month-to-month tenancy under Section 106, terminable by a 15-day notice to quit.
Legal Commentary:

For properties exempt from State Rent Control laws (such as premises with monthly rent above statutory thresholds or corporate tenancies), Section 106 is the primary eviction vehicle. Landlords need not prove personal necessity or tenant default; valid service of a 15-day notice to quit under Section 106 automatically determines the tenancy.