Section 111 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.
A lease does not simply stop when the parties lose interest in it. Section 111 lists the ways in which a lease of immovable property determines: eight modes in all, from the passing of time to a notice. This article explains each one, with the written-notice rule that goes with forfeiture, as per the text of the Act consulted.
A lease determines (a) by efflux of time; (b) on a conditional event happening; (c) when the lessor's interest ends; (d) when the interests of lessor and lessee vest in one person; (e) by express surrender; (f) by implied surrender; (g) by forfeiture, which needs the lessor or his transferee to give notice in writing of his intention to determine; and (h) on expiry of a notice to determine or to quit, duly given.
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 (g) are in square brackets, which marks inserted or substituted wording, and "[ *]" marks omitted words after "re-enter". Clauses (b) and (c) are printed "eventby the happening of such event", with a dash missing between the words; it is quoted as read, "event, by the happening of such event". The notice rules for leases with no stated term are in our article on section 106.
If you need a forfeiture or quit notice prepared, our legal notice drafting service can draft it.
The eight modes
| Clause | Mode | In plain words |
|---|---|---|
| (a) | Efflux of time | The time limited by the lease runs out |
| (b) | Conditional time | The time was limited conditionally on an event, and the event happens |
| (c) | Lessor's interest ends | The lessor's interest ends on, or his power to dispose extends only to, the happening of an event, and the event happens |
| (d) | Merger | The interests of lessee and lessor in the whole property become vested at the same time in one person in the same right |
| (e) | Express surrender | The lessee yields up his interest to the lessor, by mutual agreement |
| (f) | Implied surrender | See the illustration below |
| (g) | Forfeiture | Breach of express condition, renunciation of character, or insolvency, followed by written notice |
| (h) | Notice | A notice to determine or to quit, or of intention to quit, duly given by one party to the other, expires |
Clauses (a) to (c): time and events
(a) is the ordinary case: a five-year lease ends when the five years are over. (b) covers a lease whose time is limited by an event, such as "until the lessee completes his studies", and ends when the event happens. (c) covers the case where the lessor's own interest was always going to end on an event, for example a lessor who held only for the life of another; when that event happens, the lease ends.
Clause (d): merger
If the interests of the lessee and the lessor in the whole of the property become vested at the same time in one person in the same right, the lease ends. This happens when, say, the tenant buys the property from the landlord, so one person holds both interests.
Clauses (e) and (f): surrender
Express surrender (e) is where the lessee yields up his interest under the lease to the lessor by mutual agreement. Implied surrender (f) is not defined in words, but the Act gives an illustration: a lessee accepts from his lessor a new lease of the property leased, to take effect during the continuance of the existing lease. This is an implied surrender of the former lease, and it determines at once. The effect of surrender on under-leases is in our article on sections 115 to 117.
Clause (g): forfeiture
A lease determines by forfeiture in these cases:
- the lessee breaks an express condition which provides that, on breach, the lessor may re-enter; or
- the lessee renounces his character as such by setting up a title in a third person or claiming title in himself; or
- the lessee is adjudicated an insolvent and the lease provides that the lessor may re-enter on that event.
And in any of these cases, the lessor or his transferee must give notice in writing to the lessee of his intention to determine the lease. Without that notice, the forfeiture mode in clause (g) is not complete on the text. The notice must be in writing. How a forfeiture is waived is in our article on sections 112 and 113. Relief against forfeiture is in the article on sections 114 and 114A.
Clause (h): expiry of notice
A lease determines on the expiration of a notice to determine the lease, or to quit, or of intention to quit, the property leased, duly given by one party to the other. This is the route used when section 106 supplies the notice period for a lease with no stated term.
Worked example
Rajiv leases a showroom to Alka for ten years, with an express condition that if she sublets without consent he may re-enter. In year four, Alka sublets without consent. Rajiv may use clause (g), but only after giving Alka notice in writing of his intention to determine the lease. If instead Alka, in year four, accepts from Rajiv a new lease of the same showroom starting from year six, that is an implied surrender of the first lease under clause (f).
If Rajiv and Alka both agree in writing that she will hand the showroom back, that is an express surrender under clause (e).
Practical points
- Identify the mode. Different modes have different requirements: only forfeiture and notice need a written notice from the lessor or one party to the other.
- Written notice for forfeiture: make it in writing, state the ground and the intention to determine the lease; keep proof of service.
- Notice under (h): compute the period from the date the notice is received, if section 106 applies.
- Watch for waiver: accepting rent after a forfeiture may undo it; see the sections 112 and 113 article.
- Insolvency forfeiture needs both an adjudication and a lease clause permitting re-entry on that event.
- Format tips for notices are in our guide on legal notice format and drafting.
Need help ending or defending a lease?
Which mode applies, and whether a written notice was needed and properly given, can decide whether a lease has ended at all. Our legal notice drafting team can prepare the notice or review one you have received.
Key takeaways
- Section 111 lists eight modes of determination, (a) to (h).
- Merger needs both interests in the whole property to vest in one person in the same right.
- Express surrender is by mutual agreement; accepting a new lease during the existing one is an implied surrender.
- Forfeiture covers breach of an express re-entry condition, renunciation of character and insolvency with a re-entry clause, and needs notice in writing.
- A duly given notice to determine or quit ends the lease when it expires.
Read next
- Section 106: duration of lease and notice to quit
- Sections 112 and 113: waiver of forfeiture and of notice to quit
- Sections 114 and 114A: relief against forfeiture
- Lease of immovable property: section 105
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.