Section 109 TPA: Rights of lessor's transferee

Section 109 of Transfer of Property Act: Rights of lessor's transferee

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

If the lessor transfers the property leased, or any part thereof, or any part of his interest therein, the transferee, in the absence of a contract to the contrary, shall possess all the rights, and, if the lessee so elects, be subject to all the liabilities of the lessor as to the property or part transferred so long as he is the owner of it;

but the lessor shall not, by reason only of such transfer cease to be subject to any of the liabilities imposed upon him by the lease, unless the lessee chooses to elect him:

Provided that the transferee is not entitled to arrears of rent due before the transfer, and that, if the lessee, not having reason to believe that such transfer has been made, pays rent to the lessor, the lessee shall not be liable to pay such rent over again to the transferee.

The lessor, the transferee and the lessee may determine what proportion of the premium or rent reserved by the lease is payable in respect of the part so transferred, and, in case they disagree, such determination may be made by any Court having jurisdiction to entertain a suit for the possession of the property leased.

Statutory Defined Terms in this Section: (Click any term for official legal definition)

Lease Sec 105

Legal Commentary & Landmark Judgments: Section 109

Section 109 codifies the statutory transfer of lessor's rights upon alienation of leased property, creating automatic attornment by operation of law and transferring rent rights to the new owner without requiring tenant consent.

Automatic Attornment: If the lessor transfers the property leased, or any part thereof, or any part of his interest therein, the transferee, in the absence of a contract to the contrary, shall possess all the rights, and, if the lessee so elects, be subject to all the liabilities of the lessor as to the property.
No Tenant Consent Required: Tenant's attornment is not a condition precedent; title and rent rights transfer automatically on the date of conveyance.
Tenant Protection for Advance Rent: Transferee is not entitled to arrears of rent due before the transfer; tenant is protected if he paid rent bona fide to the prior lessor before receiving notice of transfer under Section 50.

Key Landmark Precedents:

B.P. Pathak v. Dr. R.V. Shirali, AIR 1976 MP 144: The Full Bench authoritatively settled that under Section 109, attornment of tenancy is automatic by operation of law upon execution of a registered conveyance; the new owner does not require tenant consent to institute eviction proceedings.
Mahendra Raghunathdas Gupta v. Vishvanath Bhikaji Mogul, (1997) 5 SCC 329: The Supreme Court held that attornment under Section 109 is complete upon transfer, and a formal notice of attornment is necessary only to prevent the tenant from paying rent to the old landlord under Section 50.
Apollo Zipper Co. Pvt. Ltd. v. W.O. Peterson, (2018) 6 SCC 744: Reaffirmed that the transferee landlord acquires full standing under Section 109 to issue notice to quit and file eviction suits for bona fide personal necessity.

Courtroom Practice & Strategic Litigation Guidance:

Upon purchasing tenanted property, immediately serve a Section 109 Notice of Attornment on the tenant directing payment of future rents to your bank account; tenant consent is legally irrelevant.

Section 109: Rights of lessor's transferee

Section 109 of Transfer of Property Act: Rights of lessor's transferee

Legal Commentary & Landmark Judgments: Section 109