The Supreme Court in Civil Appeal No. 2617 of 2020 [arising out of SLP (C) No. 9866 of 2019 titled Siri Chand (Deceased) through LRs v/s Surinder Singh noted that as per Section 17 (1)(d) of the Registration Act, 1908 leases of immovable property from year to year, or for any term exceeding one year, or reserving a yearly rent requires compulsory registration. The rent deed in question did not provide for any specific period for which the rent deed was executed. In such a situation, the Bench comprising of Justices Ashok Bhushan, M. R. Shah, and V. Ramasubramanian observed:
When the lease deed does not mention the period of tenancy, other conditions of the lease/rent deed and intention of the parties have to be gathered to find out the true nature of the lease deed/rent deed.
As per Section 17 (1)(d), leases of immovable property from year to year, or for any term exceeding one year, or reserving a yearly rent requires compulsory registration. Whether the rent deed can be treated to be a lease of immovable property:
from year to year;
for any term exceeding one year;
or reserving a yearly rent?
Supreme Court further held that:
it has no doubt been recognized in several cases that the mode in which rent is expressed to be payable affords a presumption that the tenancy is of a character corresponding thereto. Consequently, when the rent reserved is an annual rent, the presumption would arise that the tenancy was an annual tenancy unless there is something to rebut the presumption
