2.3 A leave and a licence for a property differ from a rental agreement that creates an interest in the property that the license does not have. Over time, the Supreme Court and various high courts have established several tests for the determination of a license from a lease agreement, but none of them is conclusive. The best known is Associated Hotels of India Ltd. v. R.N. Kapoor, AIR 1959 SC 1262 and the final decision on this is ICICI (1999) 5 SCC 708 (SC). It is a general practice of these MNCs to enter into a lease agreement instead of a leave and a licensing agreement, because they then have an interest in the property. In other words, they will have more control over the property. The lease for the period can be decided mutually, it is not very important that you respect the conditions they would try to impose, you can also make changes that suit your taste. You don`t sign a lease if you rent a house, even though you often hear that people say they have a lease. What is usually signed is a holiday and license agreement.
This is only good for the landowner, as there are fewer rights over the tenant. This agreement essentially gives permission to stay in premises for the duration of the agreement, without granting the taker a share or interest in the property. The owner is known as a licensee. A licence under section 52 (Chapter VI) of the Indian Easement Act, 1882 is an agreement « where a person grants another person or a number of other persons the right to do or continue to do something on or on the land of the granted, which would be illegal in the absence of such a right. » Such agreements can be signed for up to five years, but a period of 11 months (or more) is usual. 2.2 P.56 of the Act provides that a licence cannot be delegated by a licensee or its agent unless the terms of the licence provide for it. A license cannot be granted by the licensee. A popular choice among owners, the license and leave agreement has the following features. The Rent Control Act strongly favours tenants and limits the landlord`s power to regain land. However, on leave and in license, an action may be brought against the illegitimate tenant who occupies the property after the termination of the licence or ™ after the expiry of the licence. 2.
At the end of the day, the reciprocal rights and commitments that can be invoked by the parties boil down to the contours of the agreement. So get an impeccable agreement from your lawyer rather than sign on the points line prepared by the company. A licence is a personal right that is granted to a person to do something on the funder`s land and does not represent interest in the property itself. It is a permissive right and for the fellow personally. It does not create obligations and obligations to the persons who grant the grant and is therefore revocable, unless it is revocable in certain circumstances expressly provided for by the statute itself. The licence, if granted, has no other effect in giving the licensee the freedom to go to the country which would otherwise be legal.