New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    A lets a house to B for five years. B underlets the

    house to C at a monthly rent of Rs. 100. The five years expire, but C continues in possession of the house and pays the rent to A. C's lease is ?
    A renewed. Correct Answer Incorrect Answer
    B Surrendered Correct Answer Incorrect Answer
    C Expires automatically Correct Answer Incorrect Answer
    D Terminates Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    S. 116. Effect of holding over.—If a lessee or under-lessee of property remains in possession  thereof after the determination of the lease granted to the lessee, and the lessor or his legal  representative accepts rent from the lessee or under-lessee, or otherwise assents to his continuing in  possession, the lease is, in the absence of an agreement to the contrary, renewedfrom year to year, or  from month to month, according to the purpose for which the property is leased, as specified in section  106.  Illustrations (a) A lets a house to B for five years. B underlets the house to C at a monthly rent of Rs. 100. The five years  expire, but C continues in possession of the house and pays the rent to A. C's lease is renewed from month to month.

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