Section 116 of TPA : Section 116: Effect Of Holding Over

Explanation using Example

Imagine Sarah rents an apartment from John for a period of one year. The lease agreement specifies that the rent is due on a monthly basis. After the one-year lease period ends, Sarah does not vacate the apartment and continues to live there. She also continues to send the monthly rent to John, which he accepts without any objection or communication about vacating the property.

In this scenario, according to Section 116 of The Transfer of Property Act, 1882, Sarah's lease is considered to be renewed from month to month. John's acceptance of rent after the lease term indicates his assent to Sarah's continued possession of the apartment. Unless they agree otherwise, Sarah is entitled to keep living in the apartment under a month-to-month lease agreement.