The lease agreement is also known as a lease agreement and is a written contract between the owner of a property (the owner) and the tenant who accepts it as a rental. The agreement defines the conditions on which the property is leased, for example.B.: description of the property (address, type and size), monthly rent, deposit, purpose for which the property can be used (residential or commercial building), and duration of the contract. Its terms and conditions can be negotiated, but once signed, it is mandatory for both the lessor and the tenant. It also sets out the conditions under which the agreement can be terminated. Data available with Makaan.com show that 21 percent of all homeowners who listed their properties for rent on the site expect their tenants to stay for at least a year. Why then are leases only signed for 11 months, one month less than one year? In accordance with Section 17 of the 1908 Registration Act, leases of more than one year must be registered with local authorities. Both parties pay stamp duty and registration fees. As a general rule, the tenant must pay the additional rental fee. Therefore, a tenancy agreement is the documentation of contractual terms agreed by the landlord and tenant. This is why it acts as evidence when a dispute arises between the landlord and the tenant over the property. Today, the majority of companies in Delhi and Noida require a lease. Therefore, extending the duration beyond this time would have many effects. From a monetary point of view, an extension of more than 11 months would not be cost-effective and, from a legal point of view, the whole process will be slow.

In the case of Abdul Rasheed/Srinivas, Judge HG Ramesh considered ”whether a rental case for which the specified rental period does not exceed one year should be registered under the Registration Act of 1908.” Section 107 of the Transfer of Ownership Act states that ”the rental of real estate from one year to the next, or for a period of more than one year, or the booking of an annual rent, can only be done by a registered instrument.” However, in this particular case, the HC contract gave importance to the following paragraph of section 107, which states that ”all other land leases may be made either by a registered instrument or by a verbal agreement with the surrender of the property.” Section 49 of the Act also states that a registration document that is not registered ”cannot be obtained as evidence of a transaction relating to that property.” The court found that where a document is something that governs the lease only for a period of one year, but it is a written document and not just an oral agreement, that particular document must be registered after the stamp duty payment. Therefore, under Section 49, they become inadmissible in court if they are not registered. In Haryana, stamp duty on leases varies between 1.5 and 3% of the average annual rent, depending on the rental period indicated in the document. Registration fees vary between Rs 1,500 and Rs 16,000 depending on the amount of rent. In this particular case, the court also decided that the unreged agreement, even if it cannot be used as evidence in court, can nevertheless be used as evidence confirming (or supporting) the existence of a prior agreement.