Ss. 106 and 107-whether the rent deed can be treated to be a lease of immovable property (i) from year to year (ii) for any term exceeding one year (iii) or reserving a yearly rent?

As per sec 17(1)(d), leases of immovable property from year to year or for any term exceeding one year, or reserving a yearly rent requires compulsory registration.

Held, the rent note, which we are considering contains only monthly rent and payment month by month. When the clauses of rent note are cumulatively read, the intention of the tenant is more than clear that tenancy was only monthly tenancy, which could have been terminated on default of payment of rent by 5^th day of any month or by notice of one month. Clause (9) which noticed the promise of the tenant of payment of rent by increasing 10% each year was a promise contingent on tenancy being continued beyond one year. Present was the case of tenancy for which no period was specified and looking at all the clauses cumulatively, we find that the rent note was not such kind of rent note, which requires compulsory registration under sec 17(1)(d).

(2020) 6 SCC 288- Siri Chand (Dead) through legal representatives vs. Surinder Singh.