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    Leave and Licenses in India: A Guide with Helpful Notes and Tips
    Leave and Licenses in India: A Guide with Helpful Notes and Tips
    Leave and Licenses in India: A Guide with Helpful Notes and Tips
    Ebook87 pages1 hour

    Leave and Licenses in India: A Guide with Helpful Notes and Tips

    By Pritish Prabhu

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    About this ebook

    The concept of Leave and License is has not been encapsulated in a separate and independent Act of the Legislature. This concept has been embodied in the Indian Easements Act, 1882. Section 52 till Section 64 of the Indian Easements Act, 1882, deals with licenses and their governance. A License unlike a Lease, is a mere right to make use of the subject property. Lease involves handing over the possession of the premises/ plot of land to the lessee. The Lessor, unless there is an agreement to the contrary, reserves only the right of ownership of the subject property. License on the other hand, is a mere permission given and the said permission does not include the absolute right of possession of the subject property. In a license, the licensor reserves the right of possession, both legal and physical. The Licensee is merely given the right to use it for the purposes in terms of the license agreement. The legal convention is that the courts try to infer the intention of the parties so as to determine whether if the parties intended to create a Lease or License. An Agreement for Leave and License should be carefully drafted so to project that the intention of the parties is only to create and license and not a lease. The absolute possession of the subject property should never be handed over the Licensee, for otherwise the agreement maybe construed as a Lease Agreement. An Agreement for leave and License is to be made for a period of 11 or less that 11 months only as an agreement granting a lease or a license for a period 1 year or more, is required to be registered as per the Indian Registration Act 1983.
    Licenses though were meant for immovable properties to be given for purpose other than residential, are widely being used for letting out flats and houses, in lieu of monthly rents. The legislature enacted the Rent Control (Protection from Eviction) Act, which has been bespokly changed and adopted by various states, to govern the rental transactions. Since the grounds for eviction of a tenant under the Rent Act were limited and narrow, landlords started entering into Leave and License Agreements with their tenants, in order to escape the rigidity of the Rent Act. Unlike a Rent/Lease Agreement, a covenant empowering the landlord to evict his tenant any ground, upon serving a statutory notice is valid. 
    This book is my humble endeavour to simplify the concept of leave and licenses, for the benefit of both the Landlords and their Tenants. The contents of this book are correct to the best of knowledge. 

    LanguageEnglish
    PublisherWinchester Publications
    Release dateSep 20, 2018
    ISBN9781386284994
    Leave and Licenses in India: A Guide with Helpful Notes and Tips

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      Leave and Licenses in India - Pritish Prabhu

      #Preface

      The concept of Leave and License is has not been encapsulated in a separate and independent Act of the Legislature. This concept has been embodied in the Indian Easements Act, 1882. Section 52 till Section 64 of the Indian Easements Act, 1882, deals with licenses and their governance. A License unlike a Lease, is a mere right to make use of the subject property. Lease involves handing over the possession of the premises/ plot of land to the lessee. The Lessor, unless there is an agreement to the contrary, reserves only the right of ownership of the subject property. License on the other hand, is a mere permission given and the said permission does not include the absolute right of possession of the subject property. In a license, the licensor reserves the right of possession, both legal and physical. The Licensee is merely given the right to use it for the purposes in terms of the license agreement. The legal convention is that the courts try to infer the intention of the parties so as to determine whether if the parties intended to create a Lease or License. An Agreement for Leave and License should be carefully drafted so to project that the intention of the parties is only to create and license and not a lease. The absolute possession of the subject property should never be handed over the Licensee, for otherwise the agreement maybe construed as a Lease Agreement. An Agreement for leave and License is to be made for a period of 11 or less that 11 months only as an agreement granting a lease or a license for a period 1 year or more, is required to be registered as per the Indian Registration Act 1983.

      Licenses though were meant for immovable properties to be given for purpose other than residential, are widely being used for letting out flats and houses, in lieu of monthly rents. The legislature enacted the Rent Control (Protection from Eviction) Act, which has been bespokly changed and adopted by various states, to govern the rental transactions. Since the grounds for eviction of a tenant under the Rent Act were limited and narrow, landlords started entering into Leave and License Agreements with their tenants, in order to escape the rigidity of the Rent Act. Unlike a Rent/Lease Agreement, a covenant empowering the landlord to evict his tenant any ground, upon serving a statutory notice is valid.

      This book is my humble endeavour to simplify the concept of leave and licenses, for the benefit of both the Landlords and their Tenants. The contents of this book are correct to the best of knowledge.

      #What is a License?

      ALicence is a personal right granted to a person to do something upon immovable property of the grantor and does not amount to the creation of interest in the property itself. It is purely a permissive right and is personal to the grantee. It creates no duties and obligations upon the persons making the grant and is, therefore, revocable except in certain circumstances expressly provided for in the Act itself. The license, when granted, has not other effect to confer liberty upon the licensee to go upon the land which would otherwise be lawful.

      Section 52 of Indian Easement Act, 1882 defines Licence as under:

      Where one person grants to another, or to a definite number of other persons, a right to do or continue to do, in or upon immovable property of the grantor, something which would, in the absence of such rights, be unlawful, and such right does not amount to an easement or an interest in the property, the right is called a license.

      Therefore, in terms of the above state section, a license can only be granted in respect of an immovable property or a thing. It cannot be granted in respect of a movable property. Permission granted to a person to use a particular car or a vehicle in lieu of consideration or otherwise cannot be termed as a license.

      Furthermore, a licensee need not be for a consideration. If the license is for a consideration, the word ‘compensation’ in place of words like ‘rent’ or ‘consideration’ should be used to avoid the agreement to be interpreted as a lease agreement.

      The person who grants the license in respect of a certain immovable property is generally referred to as the ‘Licensor’ or ‘Grantor’ and the person receiving the license is generally referred to as the ‘Licensee’ or the ‘Grantee’.

      A Licence is merely a leave to the licensee to do something lawfully which he otherwise could have done unlawfully. It confers no interest or property in the thing, and though it may be coupled with a grant which conveys an interest in property, by itself it never conveys any interest in the property itself. A Licence to go beyond the seas, to hunt in a man’s park, to come into his house, is only actions which, without license, had been unlawful.  But a license to hunt in a man’s park and carry away the deer killed to his own use, to cut down a tree in a man’s

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