Explain the following: A sub-lease is an absolute assignment.
CS Professional · Drafting, Appearances and Pleadings · PYQS · December 2020
Explain the following: A sub-lease is an absolute assignment.
Answer & Explanation:
A sub-lease is a demise by a lessee for lessor term than he himself has. Every lessee, however short his term may be, make a sub-lease unless he is refrained by the contract of the tenancy from subletting. If the demise is for the whole term or for a period beyond the term, it amounts to assignment. If the lessee divests himself he becomes a stranger to the demised property and he has no right to have possession delivered up to him. It is true that a covenant against subletting will restrain the assignment, but a mere covenant against subletting does not prohibit underletting a part of the premises. As long as the lessee remains in possession he may permit another person to use the demised premises without committing a breach of covenant, namely not to assign, underlet or part with the possession of the demised premises. The Privy Council pointed out in Hunsrai v. Bejoylal Seal, (1930) 57 Cal 1176 , that in India a sub-lease is not an absolute assignment and it was further held in Akshoy Kumar v. Akman Molla, (1915) 19 CWN 1197 , that there is no privity of estate as between the lessor and the sub-lessee, who does not step into the shoes of the lessee. A sub-lease is not prejudiced by the surrender of the head lease (Section 115 of Transfer of Property Act) but the position is different in the case of forfeiture which annuls all sub-leases except in case of fraud as between the lessor and lessee. A sub-lessee is entitled to relief against forfeiture under Section 114 of the Transfer of Property Act, 1882, which is applicable only in the case of non-payment of rent. No relief is open to the sub-lease in case of transfer of breach of covenant in restraint of transfer.
Topics: Lease and Sub-lease
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