THE TRANSFER OF PROPERTY (AMENDMENT) ACT, 2002*

THE TRANSFER OF PROPERTY (AMENDMENT) ACT, 2002*

(3 OF 2003)

                                                                                    [31st December, 2002]

An Act further to amend the Transfer of Property Act, 1882.

Be it enacted by Parliament in the Fifty-third Year of the Republic of India as follows.—

 

Statement of Objects and Reasons

 

Section 106 of the Transfer of Property Act, 1882, inter-alia, provides that the lease of immovable property for agricultural or manufacturing purposes shall be deemed to be a lease from year to year, which may be terminated either by the lessor or the lessee by six months’ notice expiring with the end of the year of the tenancy; and a lease of the immovable property for any other purpose shall be deemed to be a lease from month to month, which may be terminated either by the lessor or lessee by fifteen days’ notice expiring by the end of the month of the tenancy. The legal position, which has also been reiterated by the Supreme Court in the Mangilal v. Sugan Chand, A.I.R. 1965 S.C. 101, 104, is that while computing the period of notice the day on which the notice is served is required to be excluded.  The Law Commission of India in its 181st Report on amendment to section 106 of the Transfer of Property Act, 1882 has examined the working of this section and found that a number of suits have been filed in ignorance of this legal position and these suits have been dismissed on this lone technicality.  Such a position leads to serving of a fresh notice and filing of a fresh suit  which amounts not only to serious injustice but also to multiplicity of litigations despite the fact that the defendant had more time available to him than the prescribed period of notice by the date when the suit is filed to evict him or even by the date of judgment dismissing the suit.

 

  1. Hence, it is proposed that the period of notice shall commence from the date of its receipt and the amendment shall apply to the pending suits or proceedings and notices issued before the commencement of the proposed amendment.

 

  1. The Bill seeks to achieve the aforesaid object.

 

  1. Short title.—

This Act may be called THE TRANSFER OF PROPERTY (AMENDMENT) ACT, 2002.

 

  1. Substitution of new section for section 106.—

For section 106 of the Transfer of Property Act, 1882 (4 of 1882) (hereinafter referred to as the principal Act), the following section shall be substituted, namely:-

 

“106, Duration of certain leases in absence of written contract or local usage.—

(1) In the absence of a contract or local law or usage to the contrary, a lease of immovable property for agricultural or manufacturing purposes shall be deemed to be a lease from year to year, terminable, on the part of either lessor or lessee, by six months’ notice; and a lease of immovable property for any other purpose shall be deemed to be a lease form month to month, terminable, on the part of either lessor or lessee, by fifteen days’ notice.

(2) Notwithstanding anything contained in any other law for the time being in force, the period mentioned in sub-section (1) shall, commence from the date of receipt of notice.

(3) A notice under sub-section (1) shall not be deemed to be invalid merely because the period mentioned therein falls short of the period specified under that sub-section, where a suit or proceeding is filed after the expiry of the period mentioned in that sub-section.

(4) Every notice under sub-section (1) must be in writing, signed by or on behalf of the person giving it, and either be sent by post to the party who is intended to be bound by it or be tendered or delivered personally to such party, or to one of his family or servants at his residence, or (if such tender or delivery is not practicable) affixed to a conspicuous part of the property.”

 

  1. Transitory provision.—

The provisions of section 106 of the principal Act, as amended by section 2, shall apply to—

(a) all notices in pursuance of which any suit or proceeding is pending at the commencement of this Act; and

(b) all notices which have been issued before the commencement of this Act but where no suit or proceeding has been filed before such commencement.

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*  Received the assent of the President on 31.12.2002 and published in the Gazette of India, Ext. Pt.II,S.1, dated 01.01.2003.

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