A tenant's LEASE expires, but the tenant continues in occupation (holds over) and the LESSOR accepts rent from him. Under Section 116 of the Transfer of Property Act, 1882, the effect is:

Section 116 of the Transfer of Property Act applies the doctrine of RENEWAL BY ACCEPTANCE OF RENT (holding over): where a lessee continues in possession after the expiry of the lease and the LESSOR accepts RENT from him, the lease is, in the absence of an agreement to the contrary, RENEWED from year to year or from month to month, according to the nature of the original lease (and the accepted rent), on the same terms as the original lease so far as applicable. The acceptance of rent manifests the landlord's intent to continue the tenancy. This implied renewal protects the tenant in occupation while compensating the landlord.