Tenant Not Paying Rent? Legal Notice for Rent Arrears & Eviction

The landlord leased commercial property under a registered lease for 15 years. Upon expiration of the lease period, the tenant continued in occupation and disputed the landlord's right to re-enter. The landlord issued a statutory 15-day notice under Section 106 of the Transfer of Property Act, 1882 determining the lease and seeking vacant possession alongside arrears. The tenant contested the validity of the notice.

The Supreme Court held that once a lease determines by efflux of time under Section 111(a) of the TPA, no further notice is strictly required unless the tenant has been accepted as a month-to-month tenant. Serving a clear 15-day notice under Section 106 unequivocally terminates any implied month-to-month tenancy. The landlord is fully entitled to a decree of possession and recovery of arrears without getting bogged down in technical procedural objections.

The landlord secured an eviction order against a commercial tenant. The tenant filed an appeal and sought an interim stay on eviction while continuing to pay a nominal, decades-old contractual rent. The landlord petitioned that the tenant must pay the prevailing market rent as mesne profits during the pendency of the appeal.

The Supreme Court held that from the moment an eviction notice or decree is passed, the tenant's tenancy stands determined. If the tenant seeks a stay on eviction, the appellate court has the equitable duty to compel the tenant to pay mesne profits / compensation at the reasonable market rate that the landlord could have earned if the property had been re-let. The tenant cannot exploit judicial pendency while paying subsidized contractual rent.

A tenant occupied a shop under an unregistered lease deed for a term exceeding one year. The tenant defaulted on rent and contended that because the agreement was unregistered under Section 17 of the Registration Act, the landlord could not rely on the agreement to seek eviction or enforce tenancy covenants.

A three-judge bench of the Supreme Court held that while an unregistered lease deed exceeding 11 months cannot create a long-term lease, the factual transfer of possession coupled with the payment and acceptance of monthly rent establishes a valid month-to-month tenancy under Section 106 of the TPA. Such a tenancy can be validly determined by the landlord giving a 15-day notice to quit.

A public sector corporate tenant continued in occupation of commercial premises for several years after the lease expired and notice was served. The tenant continued depositing old rent and claimed protection against eviction and damages.

The Supreme Court affirmed that continuing in possession after lease determination without express landlord consent constitutes unauthorized holding over. The landlord is statutorily entitled to claim arrears of rent, damages, and mesne profits computed on actual commercial market valuation. The court directed payment of substantial arrears with commercial interest.