Guidelines for determining whether a document is lease or licence
while deciding whether a document is of leave and license or
of lease, the Court has to ascertain the intention of the parties
from its terms. The way parties choose to describe it is not
always determinative of its nature. Exclusive possession of the
premises is not the conclusive test. Though it is an important
circumstance in certain cases, other circumstance may disprove
the existence of lease. There is no simple litmus test to
distinguish agreement of lease from that of leave and license.
The intention has to be gathered from the terms of the
agreement except where it is proved that the document is a
camouflage. If it is alleged that the document is a camouflage,
the mask or veil is required to be removed for determining the
true intent and purpose of the document. If the terms of the
document are not clear, the surrounding circumstances and the
conduct of the parties have also
to be borne in mind for
ascertaining real relationship between the parties.”
IN THE HIGH COURT OF BOMBAY AT GOA
FIRST APPEAL NO. 185 OF 2003
1. Mr. Guy Vigney Athanasius D'Melo
v/s.
1. The Government of Goa Daman and Diu
: U.V. BAKRE,J.
DECIDED ON;
December 16, 2011.
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