KARNANI INDUSTRIAL BANK, LIMITED vs THE PROVINCE OF BENGAL AND OTHERS

The Supreme Court held that under Section 116 of the Transfer of Property Act, the acceptance of rent before the expiry of a lease does not automatically create a new tenancy unless both parties treat the payment as assent to continue the lease. In this case, the lessee's payment of rent did not imply such assent, thus the lease was not extended beyond its term. The Court also ruled that the lessor was entitled to an injunction against the lessee for removing materials that had become the lessor's property due to the lessee's failure to remove them within the lease period, as per the terms of the lease.