The Supreme Court of India in a very important judgment passed on 06.09.2022 in the case of Indian Oil Corporation Ltd. V. Sudera Realty Private Limited Civil Appeal No. 6199/2022 held in landlord-tenant cases that a tenant who is in possession of a property after the expiry of the lease is 'Tenant at sufferance who cannot be dispossessed forcefully and at the same time he is liable to pay Mesne Profit.

The Bench comprising of Justice KM Joseph and Justice PS Nirsimha while dismissing the appeal of the appellant Indian Oil Corporation held that tenant after such expiration of the period of lease would be termed, wrongful occupant. In para 83 of the Judgment the Apex Court held as under:-

83. Once the lease comes to an end, the erstwhile tenant becomes a tenant at sufferance. He cannot be dispossessed, except in accordance with law. But he cannot, in law, have any right or interest anymore. Even though, under Section 108 of the Transfer of Property Act, if there is no contract to the contrary, the tenant may have the right, under Section 108(j), to transfer his interest absolutely or even by sub-lease or mortgage, when the lease expires by afflux of time, his interest as lessee would come to an end. In this context, we may notice the following statement of the law in Bhawanji Lakhamshi and Others v. Himatlal Jammnadas Dani and Others23:

“9. The act of holding over after the expiration of the term does not create a tenancy of any kind. If a tenant remains in possession after the determination of the lease, the common law rule is that he is a tenant on
sufferance…”

Read the full judgment on:-

http://scourtapp.nic.in/supremecourt/2019/16519/16519_2019_6_1501_37961_Judgement_06-Sep-2022.pdf