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A lets a house to B for rent of Rs. 5,000 and then transfers the house to C. B has no notice or reason…

Section 50 of the Transfer of Property Act, 1882 protects a tenant who pays rent in good faith to the person from whom the tenant holds the property, even if that person…

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A lets a house to B for rent of Rs. 5,000 and then transfers the house to C. B has no notice or reason to believe that a transfer occurred and pays the rent to A in good faith. Which statement about that payment is correct?

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Answer and explanation

Correct answer A

Section 50 of the Transfer of Property Act, 1882 protects a tenant who pays rent in good faith to the person from whom the tenant holds the property, even if that person later proves to lack entitlement to receive it. The first proviso to section 109 similarly protects a lessee who paid the original lessor without reason to believe a transfer had been made. C therefore cannot require B to pay that same rent again.

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Option A

Correct: Under the Illustration to Section 50 and the first proviso to Section 109 of the Transfer of Property Act, 1882, where a lessee, having no notice of the transfer of the leased property, in good faith pays the rent to the original lessor (A), the lessee (B) shall not be chargeable with the rent so paid to the transferee (C).

Option B

Incorrect: Charging B again when B paid A in good faith without notice of the transfer is expressly barred by Section 50 and the first proviso to Section 109 of the TPA, 1882.

Option C

Incorrect: The statute grants complete immunity to the bona fide lessee who paid rent without notice of transfer; there is no rule of 50% apportionment against the lessee.

Option D

Incorrect: Payment of rent in good faith to the original lessor without notice of the transfer discharges the lessee's obligation for that rent and provides no ground for forfeiture.

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