In Brief
Park Street Properties held a tenancy agreement with the respondents for premises to operate a McDonald's franchise, dated 7 August 2006 but unregistered. The agreement contained a clause (Clause 6) restricting termination to situations of breach or non-payment of rent for three consecutive months. The landlord issued a 15-day termination notice under Section 106 of the Transfer of Property Act, 1882, without citing breach. The trial court upheld the termination; the High Court remanded to reconsider Clause 6. The Supreme Court held that an unregistered lease creates a deemed monthly tenancy under Section 106, terminable by 15 days' notice, and that Clause 6, being unregistered, cannot restrict this statutory right. The Court restored the trial judgment and allowed the appeal.
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