New Delhi, Dec 16: Parliament today approved a bill to amend the Transfer of Property Act, 1882 to remove legal lacunae in its implementation regarding lease of immovable property for agricultural or manufacturing or any other purposes. The Transfer of Property (Amendment) Bill 2002, already passed by the Lok Sabha, was approved by a voice vote in the Rajya Sabha after a brief discussion. Replying to the discussion, Minister of State for Law and Justice Ravi Shankar Prasad assured the house that the amendment would enable people to avoid litigation.

According to the statement of objects of the bill, it is proposed that the period of notice shall commence from the date of its receipt and the amendment shall apply to the pending suits or proceedings and notices issued before the commencement of the proposed amendment. The minister said Section 106 of the original act provides that the lease of immovable property for agricultural or manufacturing purposes, shall be deemed to be a lease from year to year which may be terminated either by the lessor or the lessee by six months' notice expiring with the end of the year of tenancy.

But lease of such a property for any other purpose shall be deemed to be a lease from month to month, which may be terminated by either party by 15 days' notice expiring by the month of tenancy. Prasad said the legal position as reiterated by the Supreme Court is that while computing the period of notice, the day on which it was served is required to be excluded.

Therefore, the amendment is necessary to remove the lacuna in the working of the act.

Bureau Report