5.1 Under the new Bye Acts, any member who wishes to take leave and a licence must apply and receive NOC. Nor would he have to pay any occupancy fees in accordance with the Commissioners` circular on this matter. “There is a clear distinction between a lease and a licence. Section 105 of the Transfer of Ownership Act defines land leasing as a transfer of a right to benefit from such property made for a certain period of time against a price paid or promised. Under Section 108 of the aforementioned Act, the tenant is allowed to be in possession of the property. A lease is therefore a transfer of land. Transferred interest is called interest rates as rent. The lessor shares his right to benefit from the property during the term of the lease, and the result is that the tenant obtains this right to the exclusion of the lessor…… After referring to the definition of the licence in section 52 of the Easement Act, that court stated: 1. Detention: Most agreements suggest that ownership remains with the licensee for the duration of the contract. However, the agreement should clearly state that the licensee does not intend to transfer a right or interest in the property itself, and the right that has been granted is an exclusive right. Conclusion: Whether the transaction is a lease or a licence, the dominant test is the intent of the parties.
In the license, the licensee has the right to use premises that have no rights and have no interest in doing so. But in the tenancy agreement, the lease has the right to enjoy the property and the land to the extent that is transferred to the tenant. Never get confused by the following clauses for your agreement: The General Clauses Act, 1897 defines it as follows; “Still property” includes land, the benefits of land and things related to the land or permanently attached to everything connected to the land. 2.2 P.56 of the Act provides that a licence cannot be delegated by a licensee or its agent unless the terms of the licence provide for it. A license cannot be granted by the licensee. As you may already know, a tenancy deed is a document written and signed by the owner of the site and the tenant who wants to occupy it. The long document discussed monthly rent and various other fees. In essence, this document transfers the right to benefit from the property of its owner, to a tenant, for a fixed period of time and for a fixed sum of money. While a lease agreement grants some interest and rights to rental property for the benefit of the tenant, another way to grant a right to a property is, through a “Leave and License” agreement, also known as a “licence”. A license is an outright “right to use” which is then transferred to the licensee. The following briefly introduced the concept of “licence” within the meaning of the law and sought to make readers aware of the fundamental differences between “leasing” and “leave and license” under Indian law.