The effect of landlords’ and tenants’ right in case of accidental destruction of property

If the building suffers a natural collapse, or is destroyed by tempest or fire, the rights of the tenant and the landlord remain the same, subject to certain conditions as stated under the Indian law. The relevant sections of the law are stated later in the article.


The Transfer of Property Act, 1882 gives the right of terminating the tenancy rights to the tenant, in case if the property is destroyed. If the tenant thinks that the current property can be repaired and he can stay or use the premises, he can choose not to revoke the contractual tenancy. Again, this relief to the tenant, is subject to a major condition- if the tenant himself had caused – directly or indirectly – the accident which resulted in the damage to the property, then he cannot use this provision to his advantage. Most of the litigation happens in order to prove the negligence of the tenant.


At this point, it is important to note the meaning of the term contractual tenancy. It means that before the collapse of the building, the tenants were paying rent to the landlord and the landlord had not issued them a notice of eviction, or asked them to leave.


This legal proposition has come up for consideration in Krishna Laxman Yadav And Ors. Vs Narsinghrao VithalRao Sonawane [AIR 1973 Bom 358, [1973 75 BOM.L.R. 29]. It was contended that the tenanted house having collapsed and destroyed by the Panshet floods in Pune in 1962, the tenancy was extinguished. It was held that the mere fact that the house collapsed and destroyed was insufficient to make a finding that the petitioners had stopped to be contractual tenants.


In Hind Rubber Industries Pvt. Ltd. vs Tayebhai Mohammedbhai Bagasarwalla And Others [AIR 1996 Bom 389, 1996 (4) BomCR 414, (1996) 98 BOMLR 87], it was held that the destruction of the tenanted structure does not extinguish the tenancy and the right of occupation of the tenant as the contract of tenancy continues to exist between the parties. In this case, justice Lodha held that merely because the tenanted structure has been destroyed or demolished, the right transferred under the lease cannot be said to have come to an end, and the relationship of lessor and lessee continues to exist.


Governing provisions under the Indian Law:


The provisions of Section 108 (e) of the Transfer of Property Act, 1882 which outlines the rights and duties of both the lessor and lessee, state:


S. 108 (e) provides the following:


(e) if by fire, tempest or flood, or violence of an army or of a mob, or other irresistible force, any material part of the property be wholly destroyed or rendered substantially and permanently unfit for the purposes for which it was let, the lease shall, at the option of the lessee, be void;


Provided that, if the injury be occasioned by the wrongful act or default of the lessee, he shall not be entitled to avail himself of the benefit of this provision.


For more clarity, read this.