Transfer of Property Act, 1882 · Chapter V: Of Leases of Immoveable Property
Section 116: Effect of holding over
If a lessee or under-lessee of property remains in possession thereof after the determination of the lease granted to the lessee, and the lessor or his legal representative accepts rent from the lessee or under-lessee, or otherwise assents to his continuing in possession, the lease is, in the absence of an agreement to the contrary, renewed from year to year, or from month to month, according to the purpose for which the property is leased, as specified in section 106.
Illustrations
(a) A lets a house to B for five years. B underlets the house to C at a monthly rent of Rs. 100. The five years expire, but C continues in possession of the house and pays the rent to A. C's lease is renewed from month to month.
(b) A lets a farm to B for the life of C. C dies, but B continues in possession with A's assent. B's lease is renewed from year to year.
Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 15 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.
Supreme Court judgments citing the section 116
- State of Uttarakhand and Anr. v. Ravi Kumar
- Raj Pal Singh v. Commissioner of Income-Tax, Haryana, Rohtak
- Nand Ram (D) Through Lrs. & Ors. v. Jagdish Prasad (D) Through Lrs.
- Shyam Lal v. Deepa Dass Chela Ram Chela Garib Dass
- Delhi Development Authority v. M/S. Anant Raj Agencies Pvt. Ltd.
- N.K. Rajendra Mohan v. Thirvamadi Rubber Co. Ltd. & Ors.
- Saroj Screens Pvt. Ltd. v. Ghanshyam and Others
- C. Albert Morris v. K. Chandrasekaran and Ors.
- Shanti Prasad Devi and Anr. v. Shankar Mahto and Ors.
- Kewal Chand Mimani (D) by Lrs v. S.K. Sen and Ors.
- Bhuneshwar Prasad and Anr. v. United Commercial Bank and Ors.
- M/S Raptakos Brett and Co. Ltd. v. Ganesh Property
- Navaneethammal v. Arjuna Chetty
- State of Karnatka v. Krishnaji Srinivas Kulkarni and Ors.