Accepting rent does not imply lease renewal


Allowing an appeal in Delhi Development Authority v Anant Raj Agencies Pvt Ltd, the Supreme Court recently held that mere acceptance of rent and other payments by a lessor from a lessee, after expiry of a lease period, cannot be construed as a renewal of lease.

Colourful_houses_in_Old_DelhiThe case centred on the lease of a plot of land to a person named Balraj Virmani. Prior to the termination of the lease in August 1968, the Delhi Development Authority (DDA) sent notices to the lessee alleging breach of the lease terms and conditions. The lessee continued in possession of the plot and in 1972 the DDA formally terminated the lease, citing non-observation of the lease terms and conditions.

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The dispute digest is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at or Readers should not act on the basis of this information without seeking professional legal advice.