Under the provisions of Transfer of Property Act, 1882
('TPA'), one of the grounds for termination of a lease is
by efflux of time. To ensure clarity over their respective rights
and entitlements, both lessors and lessees must be aware of the
consequences of an expiry of lease due to efflux of time -
especially of the different implications of choosing between an
'extension', 'renewal' or 'holding over' of
a lease. These legal concepts apply to situations where a lessee is
desirous of continuing to lawfully occupy the leased premises, even
after expiry of the original lease period.
Renewal
When a Lease Deed for a fixed term contains a clause for renewal
of the lease for a further fixed term, Parties erroneously assume
that by having incorporated a renewal clause, the original Lease
Deed would automatically stand renewed for such additional period
upon expiry of the initial lease term. However, to give effect to a
renewal clause under the original lease, a Lease
