BASANT LAL (DEAD) BY LRS. & ANR. vs THE STATE OF U.P. AND ANR.

The Supreme Court held that under Section 108(h) and Section 114A of the Transfer of Property Act, the lessors retained ownership of buildings and structures erected by the lessee upon termination of the lease, as per clause (6) of the lease-deed dated 2nd June 1941. The Court ruled that the lessees' continued occupation did not constitute a waiver of the termination notice, and any rent accepted was merely compensation for wrongful occupation. The Court concluded that the government was obligated to compensate the lessors for both land and structures upon acquisition, affirming the appellants' rights under the lease agreement.