The Difference Between Lease And Leave And Licence


wealthymattersA Lease, defined under Section 105 of The Transfer of Property Act, 1882, is a transfer of the right to enjoy the concerned property for a pre-defined time period or in perpetuity. The lessor (owner of the property) gives the lessee (the one leasing the property) such consideration periodically, usually at the beginning or end of a lease agreement.

License is defined in Section 52 of the Indian Easements Act,1882. License does not allow any interest in the premises on the licensee’s part. It merely gives the licensee the right to use and occupy the premises for a limited duration.

  •  Lease is an inheritable right, which is available as a right against any person in the world. Licence is not an inheritable right. It is personal and exclusive to the Licensee and on death it automatically stands revoked.
  • Lease creates interest on the leased property in favour of the lessee. In license no such interest is created in the licensee.
  • Lease interest can be assigned. Licence is not assignable.
  • Denial of lessor’s title results in forfeiture of lease. It is not so on a licence.
  • Remedy of breaches in case of lease is that lease can be enforced. In the case of licence only suit for damages can be filed.
  • Termination of lease requires notice to be served on the lessee. Termination of licence can be done without notice.
  • Lease deed requires registration under Registration Act 1908 and Transfer of Property Act 1882 if the value of property exceeds Rs 100 or lease duration exceeds 11 months. Earlier in case of leave and license agreements, registration was not compulsory. However according to a recent amendment in Maharashtra, stamp duty and registration is made compulsory.
  • A lessee can sue a stranger or third party in his own name. A licensee cannot do so. Hence it can be constructed from the above that under terms of agreement in respect to land and building for commercial purpose, exclusive possession is not given, and there is a covenant for delivery of vacant possession after expiry of the terms of agreement, the agreement would be a licence and not a lease. Hence the cardinal distinction between a lease and licence is that in the former there is a transfer of interest of the immovable property to enjoy, whereas on the latter case there is no transfer of interest on immovable property at all.
  • Licensee only acquires a right to occupy premises. When premises are given out on lease or tenancy basis, the legal possession of the premises in these cases is also deemed to be transferred to the lessee or tenant respectively.

About Keerthika Singaravel
Engineer,Investor,Businessperson

15 Responses to The Difference Between Lease And Leave And Licence

  1. Vasant says:

    Leave and license agreement registerd and my agreement the license could terminate the agreement giving three months notice and myself nothing mentioned expect the date month and year to be specific if presume 10 6 2018 then is there any for the licensor to issue notice in advance of one month or two month or no need because the date month and year is dull and final and what dies the act say

  2. Vasant says:

    Leave and license matters in the court are pending due to load of cases but in that case the owner has to wait and nobody else is the looser not the license nor the system when clearly mentioned in the act sporty disposal what is the reason behind it in justice to the owner and after that harassment depression run to the Court to claim his own place and again the age old theory of date. In no way the license is prosecuted for intentionally and forcefully trying to acquire the place but when agreement not registerd then the owner could be penalize or prosecuted a harsh act then what about the license .Firstly the lawyer should clearly state that if the license is not vacating the place then it will take some much time because the system is not giving the results on time an act is an act and should be followed by all.even if today you day that it is a time consuming g process after expiry if the license not handing over the place then you will find people will not let their place on this act also it us completely misguide by lawyer and system who does not a act according to law and then owner has to face the problem rather than anyone because he has no option but to fight for his place though no interested in legal battle

  3. Vasant says:

    Thanks for replying to my query .but it would be more easy if your elaborate more cleanly and the process .because after going through many websites act and judgement my conclusion is now days there is a specific mention that the licensor entitled to remove the belongings of the license without the recourse of to the Court of law if you could elaborate not cleanly and nicely in simple terms .

    • Keerthika Singaravel says:

      Vasant, I’ll try and accommodate your request as time permits. I caution you against harming your own case by precipitate action.

  4. Vasant says:

    Leave and license agreement registerd and the terms and clause mentioned in it are relevant or not for e.g. if the document says that after expiry the license becomes a tresspasser and the licensor has every right to remove his belongings .how can they be implemented without the recourse of court of law

  5. Vasant says:

    Trust faith law.and system are key to Leave and license agreement but after expiry if possession is not handed over to the licensor Then ha has to face depression harassment agony and cursing the day he believe in the system. Nowadays short family is the criteria mostly two child and the younger would not like the legal battle to go on and in that case they get disturbed in their study’s because of the legal dispute .A system should be such that the license must have a fear in his mind and even after that then the belongings should be seized by the owner then he will come to know that any property is property whether in terms of assets cash items of any nature and thusbhebwill respect and follow the law and know the value of others property

  6. Vasant says:

    What has the concern authority done in Leave and license agreement to create fear in the mind of the license . A law and act should be implemented and it is duty of the authority to see that justice is given on time .and instead of taking fault and flaw in the document it is as simple that when agreement registerd and under the act of leave and license then the act itself says many things clearly then why delay it could be just a month time to study and deliver as these are not old case where many loopholes where there in the rent and other property related cases .A licensor gives his property on the faith of the system and act worth in crores for a penny amount and if after that also he has to run post and pillar for justice then it’s a mockery of law and people would again stop giving place on Leave and license also Today’s world is short family then who has the time to fight for justice the younger generation is least bothered nowadays so it is better to keep place with you rather than giving it on L L .

  7. Vasant says:

    When an agreement is registerd and under the ambit of leave and license act then why are cases being piling up the reason major is license fee or possession after expiry .then is a simple case because the act itself says many things .then why delay in judgement. Flawless in the agreement is lawyers fault and the owner has to face the problem and to further avoid dispute then the format should be made by the govt agency according to the act so that there is no harassment to anyone and no case will come up because the lawmakers are drafting it and then registerd then no challenge to the fault of flaw in the agreement ..Further amendment should be applicable to all agreements whether old and new but don’t play with the law and prosecution should be added for license in case of possession after expiry because he is using and acquiring others place because the act says that after expiry the agreement is null and void then how and why should the owner be booked for theft to regain the possession .which is totally illegal but in case the license should be booked for forcefully and intentionally trying to acquire the property and the authority for not obeying the laws themselves for not giving justice in timeframe mentioned .

  8. Vasant says:

    A country runs on law and system and the people fear and follow the rules and regulations .if people don’t follow laws or not paying tax or light or telephone bill on time they are charged with late payment charges and after that disconnection of the service .which are hardly any amount and for others prosecution .it means laws are for only ordinary people now take the case of Leave and license where everything is said in the act that after expiry the agreement gets null and
    void and even after that the license not giving possession of the place then who’s fault the owner no because the license is least bothered as the price of property is in crore and the authority is least bothered to give judgement on time as they have nothing to loose when for a small amount people could be fined and prosecuted then why not the concern authority for not giving justice on time when time frame is being mentioned in the act itself. The only place where justice prevails is the law of court but they themselves are not giving justice on time then where the people would go .Each and every govt agency should be made accountable. and they expect people to abide by law but what about the judiciary system when they are not giving justice on time .Each and every law new or old are being misused by the govt agency .people last hopes is court and they themselves are delaying the procedure .Give justice on time and see that all cases are given justice within short time in all the courts maximum time should be 3 years .

  9. Vasant says:

    Laws are for all of us we the people of the country have to follow the laws and rules and regulations Simple wedding pay light or telephone bill on time then we have to pay interest and late payment charges and if an govt officers not give answer to query regarding RTI then he is penalize and in case is light and telephone after that disconnection so it means laws are for only ordinary people then what about the judiciary system where they don’t give justice on time when the act says that so in that case who’s fault it is the landlord who believe in the act and system so it is the duty of the judiciary to deliver justice on time to keep fear in the mind if the people so further cases won’t pile up at least in this act

  10. Vasant says:

    Laws are for all but it apply mainly to ordinary people and punishment or prosecution also to them .but what about the judiciary who does not deliver justice on time .When new laws are made for e.g. leave and license the act says that the judgement should be delivered within six month run why are more time because no one is above them and only courts and any court cases are piling up because they are not answerable to anyone because this is the last system of the govt .and if go to more and more high and supreme which an ordinary people would not be able to pay lawyers fee which are very high and not affordable.

  11. Vasant says:

    A leave and license agreement registerd and terms and rules and regulations have some value or not

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