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‘A’ has let out a house to ‘B’ at a rent of Rs. 5,000/-. Thereafter, he transfers the house to ‘C’.…

The illustration to section 50 of the Transfer of Property Act, 1882 protects a tenant who pays the former lessor in good faith without notice of the transfer. The proviso…

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‘A’ has let out a house to ‘B’ at a rent of Rs. 5,000/-. Thereafter, he transfers the house to ‘C’. ‘B’, having no notice of the transfer, in good faith pays the rent to ‘A’:

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Answer and explanation

Correct answer A

The illustration to section 50 of the Transfer of Property Act, 1882 protects a tenant who pays the former lessor in good faith without notice of the transfer. The proviso to section 109 likewise protects payment where the tenant has no reason to believe the transfer has occurred. C therefore cannot charge B again for that rent. In the absence of a contrary contract, C acquires the lessor’s rights as to the transferred property, subject to the statutory protection of those payments and the exclusion of pre-transfer arrears.

Option feedback

Option A

Correct. C cannot demand the same rent from B again because B paid A in good faith without reason to believe the property had been transferred.

Option B

Incorrect. The proviso to section 109 protects B from paying again.

Option C

Incorrect. Absent a contrary agreement, C acquires the lessor's rights as to the transferred property, subject to the statute's treatment of arrears and payments without notice.

Option D

Incorrect. The payment is protected and does not produce forfeiture.

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