Ganga Dutt Murarka v. Kartik Chunder Das

Facts

• A lease contained a condition against subletting
• The lessee sublet without the lessor's consent
• The lessor initially took no action, then later sought to forfeit the lease
• The question was whether forfeiture occurred automatically on breach or required action by the lessor

Issue

1. Whether forfeiture of a lease under S.111(g) operates ipso facto on breach of condition, or requires a positive act of election by the lessor.

Held

• Forfeiture does not operate automatically. Even after breach by the lessee, the lease continues until the lessor takes positive action to terminate (giving notice, filing suit, or otherwise manifesting intention to forfeit). Until election, the lessor is deemed to have waived the breach.

Ratio Decidendi

S.111(g) uses the word "the lessor... gives notice" and requires the lessor to act. Forfeiture is a right of the lessor, not an automatic consequence. The lessor may choose to waive the breach and continue the lease. Only when the lessor positively elects to terminate does the lease end.