Legal Drive

Leave and licence

என்றும் அழைத்தார்: leave and license

An arrangement where an owner allows a person to use premises for a fee without giving them any interest in the property. It is widely used instead of a lease, especially in Maharashtra.

Under a leave and licence agreement, the owner (licensor) permits the occupier (licensee) to use a flat, office or shop for a period and a fee. The licensee does not become a tenant and gets no interest in the property; they only have permission to use it.

The law behind it

Section 52 of the Indian Easements Act, 1882 defines a licence as a right to do something on another's property which, without that right, would be unlawful, and which does not amount to an easement or an interest in the property. A lease, by contrast, transfers a right to enjoy the property under Section 105 of the Transfer of Property Act, 1882.

What matters is the substance, not the title on the document. If the agreement in fact gives exclusive possession and the features of a lease, a court may treat it as a lease.

In Maharashtra

Section 55 of the Maharashtra Rent Control Act, 1999 requires leave and licence agreements (and tenancy agreements) to be in writing and registered. Stamp duty is payable under the Maharashtra Stamp Act. Online registration is available.

  • State the period, fee, deposit, lock-in and notice period.
  • Record the condition of the premises and fittings.
  • Say who pays maintenance, electricity and society charges.

Draft a leave and licence agreement, or a rent agreement outside Maharashtra.

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