• Lease of vacant land

A person has given his land of 0.5 acres to an educational trust for 50 years by registered lease deed in tamilnadu. In the lease deed sub lease point is not mentioned. Out of 50 years , 40 years has gone and only 10 years are balance. Whether that trust can give that land for sub lease to another party for 50 years
Asked 4 hours ago in Property Law
Religion: Hindu

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3 Answers

Under the Transfer of Property Act, 1882, a sub-lease cannot extend beyond the limited interest or duration of the original lessee.

In the present case only 10 years remain on the trust's 50-year lease, any sublease is strictly capped at those 10 years only 

Ajay Sethi
Advocate, Mumbai
100604 Answers
8227 Consultations

Without cancelling the earlier lease fresh lease can’t be executed 

Prashant Nayak
Advocate, Mumbai
35118 Answers
256 Consultations

Under Section 108(j) of the Transfer of Property Act, 1882, unless there is a contract to the contrary, a lessee can transfer their interest. However, in long-term institutional leases (especially to educational trusts), if the deed is completely silent or does not explicitly grant the power to sublease, doing so without the express written consent of the original landowner is a breach of lease agreement conditions and illegal 

Any agreement the trust makes beyond the remaining 10 years is void ab initio (legally invalid from the very beginning). Once the original 50-year lease expires the land legally reverts entirely back to the original owner (or their legal heirs), the new party would be considered an illegal occupant/trespasser after year 10 and the owner has the full right to initiate eviction proceedings.

If the trust wants to sublease the property at all, it can only do so for a maximum of the remaining 10 years, and even then, they should ideally obtain the landowner's explicit written consent to avoid litigation regarding the nature of the "educational trust" purpose.

T Kalaiselvan
Advocate, Vellore
90812 Answers
2523 Consultations

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