Transfer of Property Act Section 115 — Effect of surrender and forfeiture on under-leases

CHAPTER V OF LEASES OF IMMOVEABLE PROPERTY — Illustration to clause (f)

General

Summary

When a tenant gives up their lease, either openly or by their actions, any sub-lease they previously granted to someone else is not automatically cancelled, as long as the sub-lease has basically the same terms as the original lease, except for the amount of rent. However, if the surrender is not done to get a new lease, the sub-tenant must pay rent to and follow the contracts of the original landlord instead of the original tenant. If the original lease is forfeited, all sub-leases are cancelled, unless the landlord caused the forfeiture by cheating the sub-tenants, or the court grants relief from the forfeiture under section 114.

Official Text

The surrender, express or implied, of a lease of immoveable property does not prejudice an under-lease of the property or any part thereof previously granted by the lessee, on terms and conditions substantially the same (except as regards the amount of rent) as those of the original lease; but, unless the surrender is made for the purpose of obtaining a new lease, the rent payable by, and the contracts binding on, the under-lessee shall be respectively payable to and enforceable by the lessor. 1. Subs. by Act 20 of 1929, s. 57, for “either case”. 2. Subs. by s. 57, ibid., for “does some act showing”. 3. Ins. by s. 58, ibid. The forfeiture of such a lease annuls all such under-leases, except where such forfeiture has been procured by the lessor in fraud of the under-lessees, or relief against the forfeiture is granted under section 114.