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Leave and Licence Agreements, Summaries of Law

Leave and Licence Agreements Leave and Licence Agreements Leave and Licence Agreements Leave and Licence Agreements Leave and Licence Agreements Leave and Licence Agreements Leave and Licence Agreements

Typology: Summaries

2020/2021

Uploaded on 09/15/2021

anushree-mahindra
anushree-mahindra 🇮🇳

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On the aspect of POSSESSION v. OCCUPATION
*Possession: the possessor now becomes liable for maintenance and repair of the
property, runs risk of accidental damage or loss to the property and is also entitled
to the benefits of the property such as rental income!
Occupation : physically moving into the property and occupying it.!
As soon as an individual comes in possession of a property, they become liable for
maintenance and repair of the property, runs risk of accidental damage or loss to
the property and is also entitled to the benefits of the property such as rental
income.!
On the aspect of Leave and License Agreements and Lease Agreements in
contrast to the same.
A leave and licence agreement is a legal document that enables one party to allow
another party to use their immovable assets, i.e., property, for a specific period
without any change in the ownership of the asset. Leave and licence agreements
are commonly used among landlords and tenants in India especially in the rental
housing segment. Such an agreement makes eviction easier and is general
provides the landlord with greater power.!
In Lease Agreements!
* No transfer of interest is created from owner to tenant!
* No property rights is created!
* The amount due as Licence fee, deposit and other charges can be contractually
determined by participating individuals!
* Typical duration of contract is eleven (11) months!
* Owner maintains higher freedom and rights when it comes to cancellation and
eviction of tenant!
Leave and Licence agreement is dierent from leases as leases create an interest
in property whereas the former does not. Also, leases are transferable which is not
the case in a Leave and Licence agreement.!
A leave and license agreement is distinct from a lease agreement. If the grantee
gets an exclusive right of possession through the certain reservation, it shall be
deemed to be a lease and not a license. Therefore, a leave and license
agreement is a privilege to do something on that premise, which would otherwise
be unlawful. Whether a transaction amounts to a lease or a license depends upon
the intention of the parties involved in it and whether the exclusive possession had
been given or not.!
The aspect of possession is what forms the dierence between a Lease and a
Leave and License agreement.!
Analysis of both sections suggests:!
1. If a document gives only a right to use the property in a particular way or
under certain terms while it remains in possession and control of the owner
thereof, it will be a licence.!
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On the aspect of POSSESSION v. OCCUPATION *Possession: the possessor now becomes liable for maintenance and repair of the property, runs risk of accidental damage or loss to the property and is also entitled to the benefits of the property such as rental income Occupation : physically moving into the property and occupying it. As soon as an individual comes in possession of a property, they become liable for maintenance and repair of the property, runs risk of accidental damage or loss to the property and is also entitled to the benefits of the property such as rental income. On the aspect of Leave and License Agreements and Lease Agreements in contrast to the same. A leave and licence agreement is a legal document that enables one party to allow another party to use their immovable assets, i.e., property, for a specific period without any change in the ownership of the asset. Leave and licence agreements are commonly used among landlords and tenants in India especially in the rental housing segment. Such an agreement makes eviction easier and is general provides the landlord with greater power. In Lease Agreements

  • No transfer of interest is created from owner to tenant
  • No property rights is created
  • The amount due as Licence fee, deposit and other charges can be contractually determined by participating individuals
  • Typical duration of contract is eleven (11) months
  • Owner maintains higher freedom and rights when it comes to cancellation and eviction of tenant Leave and Licence agreement is different from leases as leases create an interest in property whereas the former does not. Also, leases are transferable which is not the case in a Leave and Licence agreement. A leave and license agreement is distinct from a lease agreement. If the grantee gets an exclusive right of possession through the certain reservation, it shall be deemed to be a lease and not a license. Therefore, a leave and license agreement is a privilege to do something on that premise, which would otherwise be unlawful. Whether a transaction amounts to a lease or a license depends upon the intention of the parties involved in it and whether the exclusive possession had been given or not. The aspect of possession is what forms the difference between a Lease and a Leave and License agreement. Analysis of both sections suggests:
  1. If a document gives only a right to use the property in a particular way or under certain terms while it remains in possession and control of the owner thereof, it will be a licence.
  1. The legal possession, therefore, continues to be with the owner of the property, but the licensee is permitted to make use of the premises for a particular purpose. But for the permission, his occupation would be unlawful.
  2. It does not create in his favour any estate or interest in the property. There is, therefore, a clear distinction between the two concepts. So, Coming to your question, Yes, you can say that in a leave and license agreement, occupation is allowed but not possession. Although, it would be more appropriate to use the term exclusive possession. HOWEVER, Exclusive possession itself is not decisive in favour of a lease and against a mere licence. Legal Perspective regarding the distinction Sohan Lal Naraindas vs Laxmidas Raghunath Gadit on 8 January, 1971 In the case, The Trial Court regarded exclusive possession of the premises, given to the defendant as conclusive of the question whether the loft was in the occupation of the defendant as a tenant. The Court observed that on a consideration of the clauses of the agreement it was unable to reach a conclusion whether the agreement was intended to operate as a lease or as a licence but since exclusive possession was given it must be regarded a lease. The High Court considered all the covenants and the attendant cir-- cumstances and reached the conclusion that having regard to the exclusive possession given to the defendant it was intended to confer an interest in the loft and on that account the agreement operated as a lease and not as a licence. Delta International Ltd vs Shyam Sunder Ganeriwalla And Anr on 9 April, 1999). If the document creates an interest in the property, it is a lease; but if it only permits another to make use of the property, of which the legal possession continues with the owner, it is a licence. Mrs. M.N. Clubwala v/s. Fida Hussain Saheb Whether an agreement creates between the parties the relationship of landlord and tenant or merely that of licensor and licensee the decisive consideration is the intention of the parties. This intention has to be ascertained on a consideration of all the relevant provisions in the agreement. Municipal Corporation of Delhi vs. Pradip Oil Corporation and Anr. A mere license does not create interest in the property to which it relates. Lease on the other hand, would amount to transfer of property. License may be personal or contractual. A licensee without the grant creates a right in the licensor to enter into a land and enjoy it. By reason of a license, no estate or interest in the property is created. A license, inter alia, (a) is not assignable;