Examine the following statements: A sub-lease is an absolute assignment.

CS Professional · Drafting, Appearances and Pleadings · PYQS · December 2015
Examine the following statements: A sub-lease is an absolute assignment.

Answer & Explanation:

In India, a sub-lease is not an absolute assignment Privy Council in Hunsraj vs Bejoylal Seal (1930) 57 cal 1176). Further in Akshay Kumar vs Akman Molla (1915) 19 CWN 1197, it was held that there is no privity of estate as between the lessor and the sub-lease, who does not step into the shoes of 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: Transfer of Property Act

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