Section 106 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Many tenancies run without a written term. Section 106 says what the law assumes in that case: a year-to-year lease ended by six months' notice, or a month-to-month lease ended by fifteen days' notice, depending on the purpose. It also says when the notice period runs and how a notice must be served. This is explained as per the text of the Act consulted.
If there is no contract, local law or usage to the contrary, a lease for agricultural or manufacturing purposes is deemed year to year, ended by six months' notice, and a lease for any other purpose is deemed month to month, ended by fifteen days' notice, by either side. The period runs from the date of receipt of the notice. A notice is not invalid merely because it falls short, if the suit is filed after the full period. It must be in writing, signed, and served in the ways listed.
Source and State note
The text consulted is a publisher's print of the Act showing amendments up to the Transfer of Property (Amendment) Act, 2002 (3 of 2003); later amendments should be checked. Section 106 is printed in its four-sub-section form, inside square brackets, which marks inserted or substituted wording. Some States have amended the Act or made local rules, and separate rent control laws may apply to your tenancy; the position in your State should be checked. Nothing from any State or rent law is described here. What a lease is, is in our article on section 105.
If you need a notice to a tenant or landlord drafted, our legal notice drafting service can prepare it.
Sub-section (1): the default duration and notice
"In the absence of a contract or local law or usage to the contrary", the section deems:
| Purpose of the lease | Deemed to be | Ended by |
|---|---|---|
| Agricultural or manufacturing | A lease from year to year | Six months' notice by either lessor or lessee |
| Any other purpose (for example a shop, an office or a residence) | A lease from month to month | Fifteen days' notice by either lessor or lessee |
The Act's own words are "agricultural or manufacturing purposes" and "any other purpose". The fallback applies only when nothing else governs: a written term, a local law or a local usage to the contrary displaces it. A lease that can only be made by a registered instrument is covered in our article on section 107.
Sub-section (2): when the period starts
Notwithstanding anything in any other law for the time being in force, the period in sub-section (1) commences from the date of receipt of notice. So fifteen days or six months are counted from the day the notice is received, not the day it is written or posted. The text does not say how receipt is proved when a notice is sent by post; that is a matter of evidence.
Sub-section (3): notice that falls short
A notice under sub-section (1) is not invalid merely because the period mentioned in it falls short of the period required, where a suit or proceeding is filed after the expiry of the period mentioned in sub-section (1). In plain words, a notice that says "ten days" in a month-to-month tenancy is not invalid merely for that reason, if the suit is filed only after the full fifteen days have run. The sub-section speaks only of the shortfall; it does not say that other defects in a notice are cured.
Sub-section (4): form and service
Every notice under sub-section (1) must be:
- in writing;
- signed by or on behalf of the person giving it; and
- served in one of these ways:
- sent by post to the party who is intended to be bound by it; or
- tendered or delivered personally to that party, or to one of his family or servants at his residence; or
- if tender or delivery is not practicable, affixed to a conspicuous part of the property.
The affixing route is the last resort and is available only if tender or delivery is "not practicable". Keep proof of whichever route you use. For the format and content of a notice, see our guide on legal notice format, requirements and drafting tips; for the other side, see our guide on how to respond to a legal notice.
How a lease ends after the notice
Section 106 is about the notice. The point at which a lease determines on its expiry is in section 111(h), covered in our article on section 111. A tenant who stays on after a lease has ended is dealt with by section 116, covered in the article on sections 115 to 117.
Worked example
Shweta lets a shop to Dinesh for his bakery under an oral arrangement with no stated term, and there is no local usage fixing a different notice. The lease is for a purpose other than agricultural or manufacturing, so it is taken as month to month. She writes a notice, signs it and posts it to Dinesh on 1 March. He receives it on 4 March. Fifteen days run from 4 March, the date of receipt. If her notice had asked him to leave in ten days, sub-section (3) says it is not invalid merely for that shortfall, if she files a suit only after the full fifteen days have passed.
If Dinesh refuses to take a posted notice and cannot be found at the shop, and tender or delivery is not practicable, sub-section (4) allows the notice to be affixed to a conspicuous part of the property.
Practical points
- Check first whether a written lease, local law or usage sets a different notice. If so, section 106(1) does not control.
- Count from receipt, not from the date of the letter.
- Sign the notice, or have it signed on your behalf.
- Choose the mode of service carefully and keep proof: postal receipt, acknowledgement, a record of delivery to a family member or servant, or a record of affixing.
- Tenants can also give notice, on the same footing; the section speaks of "either lessor or lessee".
- Eviction under rent control laws, and the registration or stamp duty of a lease, are separate subjects. Registration of a lease is covered in the article on section 107.
Need help with a notice to quit?
A notice that is signed, correctly timed and properly served avoids avoidable arguments later. If you are a landlord or tenant who needs to give or answer one, our legal notice drafting team can prepare it with you.
Key takeaways
- Without a contrary contract, local law or usage, an agricultural or manufacturing lease is year to year with six months' notice.
- Any other lease is month to month with fifteen days' notice.
- The notice period runs from the date of receipt.
- A short notice is not invalid merely for the shortfall if the suit is filed after the full period.
- The notice must be in writing, signed and served by post, personal delivery or, if not practicable, affixing to the property.
- States and rent laws may differ, so check the position in your State.
Read next
- Section 107: how a lease is made and when registration is required
- Section 111: how a lease comes to an end
- Lease of immovable property: section 105
- Legal notice: format, requirements and drafting tips
Disclaimer: Based on a publisher's print of the Transfer of Property Act, 1882 showing amendments up to the Transfer of Property (Amendment) Act, 2002 (3 of 2003), as consulted on 2 October 2026. State amendments, later amendments, stamp duty and registration charges are not covered and should be checked. This article is general information, not legal advice; check the official text before acting.