Lease of Immovable Property

Immovable property means landed property and may include structures embedded in the earth such as walls or building for the permanent beneficial enjoyment. A lease of immovable property is a transfer of right to enjoy such property ion consideration of price paid as per Section 105 of the Transfer of Property Act. By way of lease, a right and interest is created which stands transferred ion favour of the lessee. The immovable property, thereafter, only can be reverted back on determination of such right and interest in accordance with the provisions of the Transfer of Property Act. Therefore, once the right of lease is transferred in favour of the lessee, the destruction of a house/building constructed on the lease property does not determine the tenancy rights of occupant which is incidental to the contract of the lease which continues to exist between the parties. Shaha Ratansi Khimji and Sons v. Proposed Kumbhar Sons Hotel Pvt. Ltd., 2014 (5) AWC 4394 (SC).

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