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CS Professional · Drafting, Pleadings and Appearances · Types of Documents

Mehta Industries leases a godown to Joshi Logistics for a fixed term of 11 months by an unregistered written lease deed. A CS is asked about its legal effect. Which advice is correct?

A lease for a term not exceeding one year can be made without a registered instrument. Registration is mandatory only for leases from year to year, for terms above one year, or reserving a yearly rent, so an 11-month fixed lease is valid unregistered.

  1. AA lease for a term not exceeding one year may be made without a registered instrumentCorrect
  2. BA lease of immovable property is always void unless registered
  3. CThe lease can be created only by oral agreement
  4. DThe lease is valid only if the term exceeds 11 months

Explanation

Under the Transfer of Property Act, a lease of immovable property from year to year, or for a term exceeding one year, or reserving a yearly rent, requires a registered instrument. Other leases, such as a fixed term of 11 months, may be made by delivery of possession and need not be registered. So option A is correct, and option B overstates the rule.

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