Arbitration clause in leave & license

Dear Anand

There is no hard and fast rule to include or not the arbitration clause in any contract. Its a tool for alternate dispute resolution system rather approaching to court for any dispute arising out of a contract. There is no bar for arbitration clause to be included in Leave & License agreement.

Rightly  explined by Mr Mahapatra.

The issue with respect to Arbitration Clause in a Leave and Licence Agreement is decided against the validity of clause by the Hon'ble Supreme Court in the year 1981.

Thanks for your answer Mr Thakkar.  Is it possible to get the referernce to that judgement . Would be grateful.

In Maharashtra in a properly drafted and registered  Leave and License Agreement, the competent authority can decide the dispute summarily hence insertion of an arbitration clause will certainly be a misfit and not at all in favour of licensor.

Ibrahim Deshmukh
Legal Consultant
ibdesh@gmail.com
 

Thank you very much Mr Deshmukh for your reply. 

Which is the competant authority to decide leave & license matters in Maharashtra ?

Which act governs leave and license matters in Maharashtra?

You are landlord or tenant.

landlord

leave and license agreement is governed under Mah Rent Control Act. In Mumbai Competnent authority is in Mhada buiding, wherein licensor can make application for eviction of licensee.   every dist. has one competent authority which deals with proceeding regarding leave and license agreement.  however, agreement is to be registered.

thank you very much Khan saahab for your answer. But what happens when leave and lecense agreement is not registered and is just executed on Rs 100 stamp paper and we want to evict such licensee? What is the recourse?

Dear Anand

Section 55 of Maharashtra Rent Control Act, 1999 (Mah. Act No. 18 of 2000)Makes it compulsory to register the Tenancy agreement.

Sec. 55 Sub Sec (1) Notwithstanding anything contained in this Act or any other law for the time being in force, any agreement for leave and license or letting of any premises, entered into between the landlord and the tenant or the licensee, as the case may be, after the commencement of this Act, shall be in writing and shall be registered under the Registration Act, 1908.

Sec. 55 Sub Sec. (2) The responsibility of getting such agreement registered shall be on the landlord and in the absence of the written registered agreement, the contention of the tenant about the terms and conditions subject to which a premises have been given to him by the landlord on leave and license or have been let to him, shall prevail, unless proved otherwise.

Sec. 55 Sub Sec. (3) Any landlord who contravenes the provisions of this section shall, on conviction, be punished with imprisonment which may extend to three months or with fine not exceeding rupees five thousand or with both.

Hence its essential for the Licensor to get the Leave ad License Agreement registered at a nominal/fixed registration fees by the State Govt.

Although leave and licence does not create any interest in the premises in favour of the licensee but gives the licensee the mere right to use and occupy the premises for a temporary period, yet the Act makes it compulsory to register the Leave & License Agreement and the responsibility of getting the agreement registered is on the Licensor.

Under Section 24 of the Maharashtra Rent Control Act, 1999 provides that the Competent Authority on being satisfied that the period of licence has expired shall pass an order for the eviction of the licensee summarily and any over-staying period of the Licensee is penalised by the Competent Authority with double the rate of license fees fixed in the Agreement.

Please get the Agreement registered sooner than later in an  amicable way with Licensee, else you will need to issue legal notice to Licensee to force him to be present at Sub Registrar's office for registration.

Hope the above explanation satisfies most of your queries.

Ibrahim Deshmukh
Legal Consultant
ibdesh@gmail.com

Dear Anand

Section 55 of Maharashtra Rent Control Act, 1999 (Mah. Act No. 18 of 2000)Makes it compulsory to register the Tenancy agreement.

Sec. 55 Sub Sec (1) Notwithstanding anything contained in this Act or any other law for the time being in force, any agreement for leave and license or letting of any premises, entered into between the landlord and the tenant or the licensee, as the case may be, after the commencement of this Act, shall be in writing and shall be registered under the Registration Act, 1908.

Sec. 55 Sub Sec. (2) The responsibility of getting such agreement registered shall be on the landlord and in the absence of the written registered agreement, the contention of the tenant about the terms and conditions subject to which a premises have been given to him by the landlord on leave and license or have been let to him, shall prevail, unless proved otherwise.

Sec. 55 Sub Sec. (3) Any landlord who contravenes the provisions of this section shall, on conviction, be punished with imprisonment which may extend to three months or with fine not exceeding rupees five thousand or with both.

Hence its essential for the Licensor to get the Leave ad License Agreement registered at a nominal/fixed registration fees by the State Govt.

Although leave and licence does not create any interest in the premises in favour of the licensee but gives the licensee the mere right to use and occupy the premises for a temporary period, yet the Act makes it compulsory to register the Leave & License Agreement and the responsibility of getting the agreement registered is on the Licensor.

Under Section 24 of the Maharashtra Rent Control Act, 1999 provides that the Competent Authority on being satisfied that the period of licence has expired shall pass an order for the eviction of the licensee summarily and any over-staying period of the Licensee is penalised by the Competent Authority with double the rate of license fees fixed in the Agreement.

Please get the Agreement registered sooner than later in an  amicable way with Licensee, else you will need to issue legal notice to Licensee to force him to be present at Sub Registrar's office for registration.

Hope the above explanation satisfies most of your queries.

Ibrahim Deshmukh
Legal Consultant
ibdesh@gmail.com

Thank you very much Deshmukh saahab. You have briliantly clarified the queries. 

Thanks once again.- anand

Dear Mr. Khan

Can you provide me the exact address and the person to be addressed in Mahada building being the competent authority under MAHADA and also the supreme court judgment