Section 115 of The Transfer of Property Act, 1882
The surrender, express or implied, of a lease of immoveable property does not prejudice an under-lease of the property or any part thereof previously granted by the lessee, on terms and conditions substantially the same (except as regards the amount of rent) as those of the original lease; but, unless the surrender is made for the purpose of obtaining a new lease, the rent payable by, and the contracts binding on, the under-lessee shall be respectively payable to and enforceable by the lessor. The forfeiture of such a lease annuls all such under-leases, except where such forfeiture has been procured by the lessor in fraud of the under-lessees, or relief against the forfeiture is granted under section 114.
Summary
- Giving up a lease voluntarily, whether in words or by action, does not harm a sublease that was already granted.
- The sublease remains valid if its terms are mostly the same as the main lease, except for the rent amount.
- Unless the main lease was surrendered to get a new one, the subtenant must pay rent directly to the main landlord.
- In contrast, losing a lease due to a breach of terms cancels all subleases on that property.
- However, subleases are not cancelled if the landlord acted in fraud of the subtenants or if the court grants relief under Section 114.
Practical examples
FAQ
1. How does a voluntary surrender of a lease affect a sublease under Section 115 of the Transfer of Property Act, 1882?
Under Section 115 of the Transfer of Property Act, 1882, the surrender of a lease does not harm or end an existing sublease if the terms are substantially the same as the original lease.
2. Who does a subtenant pay rent to after a lease is surrendered under Section 115 of the Transfer of Property Act, 1882?
Under Section 115 of the Transfer of Property Act, 1882, unless the surrender was done to get a new lease, the subtenant pays rent directly to the main landlord.
3. Does the forfeiture of a lease end a sublease under Section 115 of the Transfer of Property Act, 1882?
Yes, under Section 115 of the Transfer of Property Act, 1882, forfeiture of a lease cancels all subleases, unless the forfeiture was done in fraud of the subtenants or relief is granted under Section 114.
Test yourself
Q1.Under Section 115 of the Transfer of Property Act, 1882, what is the effect of a voluntary surrender of a lease on a previously granted under-lease?
Q2.Under Section 115 of the Transfer of Property Act, 1882, who can enforce the covenants of an under-lease after the main lease is surrendered?
Q3.Under Section 115 of the Transfer of Property Act, 1882, if a lease is terminated by forfeiture due to non-payment of rent, what happens to the subleases?
Q4.Under the joint application of Section 114 and Section 115 of the Transfer of Property Act, 1882, what is the result if a court grants a tenant relief against forfeiture for not paying rent?