Qudrat Ullah v. Municipal Board, Bareilly

Facts

• A lease was created for a period exceeding one year through an unregistered written agreement
• The lessee claimed leasehold rights for the full term stated in the agreement
• The lessor argued the lease was invalid for want of registration

Issue

1. Whether an unregistered lease for a term exceeding one year creates a valid leasehold interest under TPA.

Held

• No. S.107 mandates that a lease from year to year, or for any term exceeding one year, can be made only by a registered instrument. An unregistered agreement for such a lease does not create the intended leasehold. However, it may operate as a month-to-month tenancy under S.106 (implied from the tenant's possession and payment of rent).

Ratio Decidendi

S.107 is mandatory: leases exceeding one year require registration. Without it, the intended term (e.g., 5 years) is not legally created. But since the tenant is in possession and paying rent, S.106 implies a month-to-month tenancy (terminable by 15 days' notice for buildings). This preserves some tenant rights while enforcing the registration requirement.