AIR 2014 SUPREME COURT 2895

Supreme Court Of India

(From : Bombay)

Hon'ble Judge(s): R. M. Lodha, Sudhansu Jyoti Mukhopadhaya, Dipak Misra , JJJ

Transfer of Property Act (4 of 1882) , S.108(e), S.111— Determination of lease - Rights and liabilities of lessee - Destruction of house/building constructed on leasehold property - Does not determine tenancy right of occupant. AIR 2003 SC 4453 : 2000 AIR SCW 4592, Overruled.Second Appeal No. 109 of 2006, D/- 18-7-2006 (Bom), Reversed. Immoveable property means landed property and may include structures embedded in the earth such as walls or buildings for the permanent beneficial enjoyment. A lease of immoveable property is a transfer of right to enjoy such property in consideration of price paid as per Section 105 of the T.P. Act. By way of lease, a right and interest is created which stands transferred in favour of the lessee. The immoveable property, there after, only can be reverted back on determination of such right and interest in accordance with the provisions of the T.P. 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. An interpretation of Section 108 (e) by assuming when a building or structure is leased out, it is the superstructure that is leased out in exclusivity cannot be allowed. The ....