Leave and license agreement
Guest
(Querist) 19 September 2012
This query is : Resolved
Learned experts-------
We usually give our property for occupation to a person for a period of 11 months. Reason could be that it is not compulsory to get such an agreement registered.
Anyways my question is whether such agreement is called a "Leave and License Agreement" or a "Lease Agreement"?
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Or whether "leave and license agreement" is just another form of lease?
And if so, whether such a person under "Leave and license agreement" gets right that of a licensee or a lessee ?
And finally, it is known fact that under the Bombay Rent Control Act prior to 1.2.1973, did not provide for giving property a residential premises on Leave & License basis. Nevertheless, a practice was in vogue to give the residential premises on Leave & License basis.
Leave & License Agreements were being executed for a period of 11 months with the intention with to avoid the stamping and registration of such agreements and treating such Agreements as a Lease of the immovable property. So that the occupiers of such premises could not invoke the provisions of the said Bombay Rent Act against their eviction. However the above said Act has been repealed in order to get rid of such illegal practices and replaced by Maharashtra Act wherein provision regarding license of residential premises was provided and even eviction provision was laid.
so what is the reason that still the 11 month period tenancy is practiced everywhere.?
ajay sethi
(Expert) 20 September 2012
it is called leave and license agreement .
under suchj agreement the person to whom premises are given is a mere licensee .
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
Guest
(Expert) 20 September 2012
Lease is defined as a transfer of right,title and interest in property,whereas Leave & License Agreement means permission granted to the Licensee to occupy the premises for a temporary period say 3/5 years.It does not creat any right,title and interst in property.The basic object of executing both the types of agreements for 11 months are to avoid giving six months prior notices to the ocupiers to ask them to vacate the properties.If such agreements are excuted for a period of less than one year, then such notices can be given even for one month or less as per the agreements.
