Leave and license agreement
D Chavan
(Querist) 01 November 2013
This query is : Resolved
In our society when a flat or shop is given on Leave and License Basis we insist that member should submit copy of Registered Stamp Duty Paid Leave and License Agreement with Police Verification.
Now one of the members says that he does not want to register the LL agreement. He will submit Notarized copy with police verification.( we do not know the reason behind this). Whether society should accept such agreement or should insist for registration. What is the correct procedure. Knowledgeable person please guide ke.
Advocate M.Bhadra
(Expert) 01 November 2013
Under Section 55 of the Maharashtra Rent Control Act, 1999, it is compulsory that all Leave and Licence agreements should be in writing and registered.Accordingly Society may ask for registered Agreement if property is under territorial of Maharashtra.
A Leave and Licence Agreement, as defined in Section 52 of the Indian Easements Act, 1882, gives the licensee the right to use and occupy the Licensed Premises for a limited duration. A Leave and Licence Agreement does not give tenants any ownership right of the property, nor does it provide the same non-eviction protections given in a Tenancy Agreement, rather the license to occupy can be terminated as per the terms of the agreement or otherwise and licensor can demand possession back from the licensee.
This kind of agreement is specific to the city of Mumbai where owner prefer to use this agreement rather than a standard Tenancy or Lease Agreement in order to save on the Stamp Duty and registration charges. A Leave & License agreement is usually for a period of 36 months.
Leave and Licence Agreement of 11 months execute irrespective to Rent Control Act and under the provision Section 52 of the Indian Easements Act, 1882.
prabhakar singh
(Expert) 01 November 2013
SINCE IT WAS NOT CLEAR IN WHICH JURISDICTION OF STATE THE FLAT OR SOCIETY EXISTS,I PREFERRED TO KEEP MUM.
TOME EVEN IF THE FLAT EXISTS IN MAHARASHTRA WHERE REGISTRATION OF LL AGREEMENTS ARE COMPULSORILY REGISTRABLE ,THE SOCIETY CAN NOT INSIST FOR REGISTRATION IN ABSENCE OF A RULE FRAMED AND APPROVED ,OR A RESOLUTION PASSED WITH MAJORITY,THE COPS AT PS.HOWEVER HAVE NO RIGHT TO ADJUDICATE OVER REGISTRATION AND STAMP DUTY.
THE OWNER,HOWEVER IS ALWAYS IN DISADVANTAGEOUS POSITION IN MAHARASHTRAV WHO CHOOSES NOT TO REGISTER BECAUSE NOT HIS PLEADINGS BUT ONLY PLEADINGS OF LICENCEE WOULD PREVAIL,MEANING THEREBY ,IF TENANT CLAIMS TENANCY AGREEMENT AND NOT LL AGREEMENT,IT WOULD BE TREATED TENANCY AGREEMENT AND NOT LL AGREEMENT,THEN I DO NOT SEE SOCIETY COMMITTING ANY ILLEGALITY ON IT'S PART ACCEPTING NOTARIZED LL AGREEMENTS EVEN IN STATE OF MAHARASHTRA WHERE REGISTRATION OF THOSE AGREEMENTS ARE COMPULSORY BY LAW .
Dr J C Vashista
(Expert) 02 November 2013
Rightly advised by experts, I endorse, give full inofrmation of the case such as where is the leased property situated, what is the period of lease, on what basis society donot accept unregistered LL Agreement etc.?
V R SHROFF
(Expert) 02 November 2013
U may inform Asst Registrar, and take his direction.
Govt officials will support ur views of ONLY REGD AGR can be used as Evidence of LL.
Govt officials secure payment of Legal dues of Govt Revenue.
By doing so, advantages to you
[1] Save your skin: dump to Registrar.
[2] share & divide risk of refusing to accept illegal LL AGR.
( we do not know the reason behind this)Simple: Save money and trouble
. Whether society should accept such agreement or should insist for registration.So insist for Registration with Reply Copy to Ass Registar c0-op soc for proper guidance & Order.
So u r safe from both sides.
Shift ur headache to authorities.. Be free.
D Chavan
(Querist) 04 November 2013
I am extremely sorry that I did not provide full information to knowledgeable persons who reply this post.
1. The owner of shop in our co-operative Housing Society wanted to give his shop of Leave and License Basis for 11 months.
2. As per Bye-Laws form No.29 for permission to sub-let by owner and form No.11 by Nominal Membership by tenant submitted.
3. The property is in Mumbai, Maharashtra.
Today owner has submitted Registered and Stamp Duty paid above LL agreement.So this problem is solved so far this case is concerned .( We came to know that owner wanted to complete the formalities but tenant was not in favour of registering the agreement.)
It may happens in future that both owner and tenant decide and submit LL agreement which is NOT REGISTERED and ask society to accept it. In such a case society should know what to do. Reply from this forum will help in such a case.
D Chavan
(Querist) 04 November 2013
I am extremely sorry that I did not provide full information to knowledgeable persons who reply this post.
1. The owner of shop in our co-operative Housing Society wanted to give his shop of Leave and License Basis for 11 months.
2. As per Bye-Laws form No.29 for permission to sub-let by owner and form No.11 by Nominal Membership by tenant submitted.
3. The property is in Mumbai, Maharashtra.
Today owner has submitted Registered and Stamp Duty paid above LL agreement.So this problem is solved so far this case is concerned .( We came to know that owner wanted to complete the formalities but tenant was not in favour of registering the agreement.)
It may happens in future that both owner and tenant decide and submit LL agreement which is NOT REGISTERED and ask society to accept it. In such a case society should know what to do. Reply from this forum will help in such a case.
ajay sethi
(Expert) 05 November 2013
if member has taken prior permission of society and obatined police verification then society should permit flats be given on leave and license basis .
you should point out the advantages of having regd agreement but leave it to member to take a call .
it is licensor funeral if inorder to save few thousand rupees he refuses to register agreement .
