LEAVE & LICENCE AGREEMENT

THIS AGREEMENT made in Mumbai, on the 31st day of January in the Christian
new year 2019 between ‘A’, Indian inhabitant, residing at Mumbai, hereinafter
referred to as the ‘licensor’, which meaning shall, unless repugnant to the context
or meaning thereof, shall include his heirs, executors and successors of the one
part: AND B, Indian inhabitant…other part.

WHEREAS
A. The licensor is the member of ___ society and as such member has right,
title and interest in flat no. ___, in the building known as ___, situated at ___
(hereinafter referred to as the licensed premises).
B. The licensee is in need of residential premises for a temporary period of 2
years for himself and his family, and has requested the licensor to grant to
him the licence in respect of the licensed promises for a period of 2 years,
which request the licensor has exceeded 2, on the terms and conditions
hereinafter set out.
Now this agreement witnesseth and it is hereby recorded by and between the
parties.
1. The licensor grants to the licensee permission to use flat no. ___, in
the building known as ___, situated at ___, being the licensed
premises for a period of 2 years commencing on the 1st day of
February 2019.
2. In consideration of the licensor permits the licensee to use the
premises for 2 years. The licensee shall pay to the licensor a sum of
₹25,000 a month as licence fee. aside from the licence fee, the
licensee salt deposit with the licensor a sum of ₹2,00.000 as security
deposit refundable to the licensee on the determination of this
agreement.

STATUTORY PART STARTS HERE

3. It is expressly agreed and declared that the licence herein granted does
not confer on the licensee any right of tenancy or sub-tenancy, or any
other right under any statute enactment, save and except that it is a
mere licence of user.
4. The juridical possession of the licensed premises shall always remain
with the licensor, and the licensor shall give to the licensee the
duplicate key, retaining with him the original key as also the right to
enter the licensed promisors with 24 hours’ notice to the licensee.
5. The licensor hereby covenants as follows:
A) He is the absolute owner of the licenced premises and is
entitled to grant licence to the licensee in the manner provided
herein.
B) He has paid the society outgoing up to 31st January 2019 and
shall continue to do so during the subsistence of this
agreement.
C) He shall not do anything or permit to do anything which shall
prejudice the right of the licensee to use the licensed premises.
6. The licensee undertakes to pay the licence fee regularly without
default on the 5th day of every English calendar month. In the event
of the licensee committing two successive defaults, the licensor shall
be entitled to call upon the licensee to remedy the default within 15
days of the receipt of the notice, failing which, the licence herein
granted shall stand ipso facto terminated, whereupon the licensee shall
be deemed to be a trespasser on the licenced premises.
7. The licensee undertakes to vacate the licenced premises on the efflux
of the licence period, or the earlier determination thereof, together
with his family members and his belongings, failing which he shall be
liable to pay to the licensor damages at the rate of ₹500 per day of
such occupation.
8. The interpretation of this licence agreement shall be subject to the
jurisdiction of courts in Mumbai alone.
9. Stamp duty and registration fee, if any, shall be borne and paid by the
licensee alone.
10. The licensee shall also pay and bear electricity and water charges in
respect of the electricity and water consumed by him in respect of the
licensed premises.
IN WITNESS THEREOF

(Signed and delivered by the licensor

Signed and delivered by the licensee)

Q&A

Define a licence, and distinguish from a lease. Does a licence confer any right
on the licensee? From the point of view of the owner, is a licence better or a
lease?
A licence is a right granted by the owner, which, if not granted, would make the
exercise of that right illegal by the user.

Which terms are appropriate in a licence?

Possession ❌

Permission to use ✔️

Which are the most appropriate words in a leave and licence agreement?
Rent (synonyms with lease) ❌
Compensation ❌

Other ❌

License ✔️

Never use words like “rent”, “premium” etc. in a licence. You must write
“security deposit”.