Rent control protection prevents automatic tenancy holding over; mere acceptance of rent after lease expiry is not enough.

Acceptance of rent after expiry of a contractual tenancy does not, by itself, create a tenancy holding over under section 116 of the Transfer of Property Act where the occupant continues in possession under rent control protection. In that situation, the occupant remains in possession by force of statute, not by virtue of a subsisting contractual tenancy, so payment or acceptance of rent equivalent amounts does not automatically amount to the landlord's assent to a renewed tenancy. A fresh tenancy may still arise from express agreement or clear conduct, but statutory protection alone is insufficient. The result is that mere receipt of rent after determination of the lease does not confer holding-over rights.

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Issues: Whether acceptance of rent after expiry of a contractual tenancy, in the setting of rent control legislation, created a tenancy holding over under section 116 of the Transfer of Property Act.

Analysis: Section 116 of the Transfer of Property Act applies only where, after determination of the lease, the lessor accepts rent or otherwise assents to the lessee continuing in possession so as to renew the lease by implication. Where rent control legislation protects the occupant after expiry of the contractual tenancy, the occupant remains in possession by force of statute and not by reason of any subsisting contractual right. In that situation, acceptance of amounts equivalent to rent, or failure to sue while the statutory bar operates, does not by itself amount to assent to a new tenancy. A fresh contractual tenancy may still arise from express agreement or clear conduct, but such inference must be drawn from the facts and not from statutory protection alone.

Conclusion: Mere acceptance of rent after expiry of the tenancy did not create a tenancy holding over, and the appellant did not acquire the rights of a tenant holding over.

Ratio Decidendi: Where a tenant remains in possession under rent control protection after determination of the lease, acceptance of rent by the landlord does not, without more, amount to assent to a renewed tenancy under section 116 of the Transfer of Property Act.

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