Section 108 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.
If clauses (a) to (j) of section 108 are the lessee's rights, clauses (k) to (q) are his duties. They cover what he must tell the lessor, pay rent, keep the property in condition, report encroachments, use it for the agreed purpose, build nothing permanent without consent and hand it back. This is explained as per the text of the Act consulted. The lessor's duties and the lessee's rights are in the first article on section 108.
"In the absence of a contract or local usage to the contrary", the lessee must: (k) disclose a fact that materially raises the value of his interest and that the lessor does not know; (l) pay or tender rent at the proper time and place; (m) keep and restore the property in as good condition as received, allow inspection, and make good within three months a defect he caused after notice; (n) give notice of encroachment or proceedings; (o) use it prudently and for the leased purpose; (p) build no permanent structure without consent, except for agriculture; (q) hand back possession at the end.
Source 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. Parts of clause (o) are in square brackets, which marks inserted or substituted wording. The section opens with "the rules next followed", which reads as though "following" was meant. In the copy, the sub-heading "(B) Rights and liabilities of the lessee" stands before clause (d), so clauses (d) to (q) all appear under it, though clauses (k) to (q) are duties. This article takes (k) to (q) as the lessee's duties.
The section applies only "in the absence of a contract or local usage to the contrary", and only to such rules as fit the property leased. A lease deed can set these duties out in detail; our agreement drafting service prepares such deeds. How a lease is made is in our article on section 107.
The seven duties
| Clause | Duty of the lessee |
|---|---|
| (k) | Disclose to the lessor any fact about the nature or extent of the interest he is about to take, of which he is aware and the lessor is not, and which materially increases the value of that interest |
| (l) | Pay or tender, at the proper time and place, the premium or rent to the lessor or his agent in this behalf |
| (m) | Keep and restore the property in as good condition as when he was put in possession, subject only to reasonable wear and tear or irresistible force; allow the lessor and agents to enter and inspect at reasonable times and give or leave notice of any defect; make good within three months after notice a defect caused by the lessee, his servants or agents |
| (n) | If he becomes aware of any proceeding to recover the property or any encroachment or interference with the lessor's rights, give notice to the lessor with reasonable diligence |
| (o) | Use the property and its products as a person of ordinary prudence would use them if they were his own; not use it for another purpose, not fell or sell timber, pull down or damage buildings belonging to the lessor, work mines or quarries not open when the lease was granted, or commit any destructive or permanently injurious act |
| (p) | Not erect any permanent structure without the lessor's consent, except for agricultural purposes |
| (q) | On determination of the lease, put the lessor into possession |
Each duty in plain words
(k) Disclosure by the lessee
The lessee must tell the lessor a fact the lessor does not know that materially increases the value of the interest the lessee is about to take. It is the counterpart of the lessor's duty to disclose defects in clause (a). The text does not give examples of such a fact.
(l) Rent
The lessee must pay or tender the premium or rent at the proper time and place to the lessor or his agent. A tender is an offer of the money; the clause speaks of paying "or tendering". The text does not define the proper time or place, which usually come from the lease.
(m) Condition, inspection and three months to make good
The lessee must keep and, when the lease ends, restore the property in as good condition as when he took possession, subject to reasonable wear and tear and irresistible force. The lessor and his agents may enter at reasonable times during the term and inspect, and give or leave notice of any defect. If the defect was caused by an act or default of the lessee, his servants or agents, he must make it good within three months after such notice has been given or left.
(n) Notice of proceedings and encroachments
If the lessee learns of a proceeding to recover the property or any part, or of an encroachment or interference with the lessor's rights, he must tell the lessor with reasonable diligence. The clause fixes no number of days.
(o) Use of the property
The lessee may use the property and its products as a prudent owner would, but must not use or allow another to use it for a purpose other than that for which it was leased, or fell or sell timber, pull down or damage the lessor's buildings, work new mines or quarries, or commit any other destructive or permanently injurious act.
(p) No permanent structure
No permanent structure without the lessor's consent, except for agricultural purposes. A shop tenant who wants to build a fixed mezzanine floor needs the landlord's consent first.
(q) Handing back
On determination of the lease, the lessee must put the lessor into possession. How a lease determines is in our article on section 111.
Example
Kunal rents a godown from Seema for storing grain. In the second year a neighbour starts building a wall that encroaches on the godown's boundary. Kunal must tell Seema with reasonable diligence (clause (n)). His staff also damage the floor with a forklift. When Seema inspects and leaves a written notice of the defect, he must make it good within three months of the notice (clause (m)). If he wants to put up a permanent steel mezzanine, he needs her consent (clause (p)). At the end, he hands the godown back (clause (q)).
Practical points
- Tenants: keep a dated condition record at the start, so that reasonable wear and tear can be told apart from damage.
- Landlords: give notice of defects in writing and note the date; the three months in clause (m) run from notice given or left.
- Both: check the lease for anything that changes these rules; the section applies only in the absence of a contract or local usage to the contrary.
- Use of property: stay within the leased purpose; a change of use is outside clause (o).
- Rent control law and stamp duty are separate subjects. See our stamp duty guide for lease and rent agreements.
- A change to lease terms should be recorded in a supplemental deed; see modification of lease terms.
Need help with tenant duties in a lease?
Clear lease clauses on rent, repairs, inspection, use and hand-back avoid most landlord-tenant disputes. Our agreement drafting team can prepare or review a lease deed so these duties are stated plainly.
Key takeaways
- Clauses (k) to (q) set the lessee's duties unless the contract or local usage says otherwise.
- He must disclose a fact that materially raises the value of his interest and is unknown to the lessor.
- He must pay or tender rent at the proper time and place.
- He must keep and restore the property, allow inspection and make good a defect he caused within three months after notice.
- He must give notice of encroachment or proceedings, use the property prudently for the leased purpose, build no permanent structure without consent, and hand back possession.
Read next
- Section 108: duties of the lessor and rights of the lessee
- Sections 109 and 110: rights of the lessor's transferee
- Section 111: how a lease comes to an end
- Specimen lease deed for commercial and industrial property
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.