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Thus, a statutory tenant is one who has ceased to a contractual tenant, but whose possession is protected by statute.

19. The Supreme Court in the case of V. Dhanapal Chettiar v. Yesodai Ammal, held that Section 106 of the Transfer of Property Act providing for termination of a lease either by the lessor or by the lessee by giving a requisite notice is not an extra protection against eviction, and that the purpose of Section 106 is merely to terminate the contract which the overriding Rent Acts did not permit to be terminated. The distinction between a contractual tenancy and a statutory tenancy is thus underscored by the fact that for bringing about a termination of the statutory tenancy, no notice under section 106 is required, while it is essential for terminating a contractual tenancy.

24. The rights of a statutory tenant are limited to those recognised by the statute, which protects his continues occupation of the premises, even against the will of the landlord. The provisions of the Rent control Act do not provide that statutory tenants shall enjoy the right to carry on business in liquor in their premises against the will of the landlord, and notwithstanding any rule that the state may make in exercise if it's powers to regulate the grant of privileges for the retail vend of liquor. No such right could possibly be extended to statutory tenants by the Rent control legislation and advisedly such legislation does not recognise any such right. The limited right of retaining possession of the property till such time as the person is evicted in due course by invoking the machinery provided under the Rent control legislation cannot be enlarged to anything more that what is expressly saved by the Rent control Act. The Apex Court has held that such statutory tenancy is heritable, unless the terms of the statute prohibit it. That, however, does not enable the statutory tenancy to make further claim that the state be complete to grant licences and privileges for the retail vend of liquor in the premises in which they are statutory tenants.