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Tuesday, February 21, 2012

Contractual Documents : Leave and License Agreement

Contractual Documents : Leave and License Agreement

Question: What is Leave and License Agreement ?

Answer:Though agreements are prepared as Leave and License Agreement but there is no statutory definition for the same in India. One of the dictionary meaning of "Leave" is permission to do something and statutory definition of License is "Where one person grants to another, or to a definite number of other persons, a right to do, or continue to do, in or upon the immovable property of the grantor, something which would, in the absence of such right, be unlawful, and such right does not amount to an easement or an interest in the property, the right is called a license" as per section 52 of the Indian Easement Act 1882 (5 of 1882).

The word license (also Licence) should not be confused with the license issued either by the Government or any local or other authority to conduct a business, to produce or sell any article etc means permission by the the Government or any local or other authority to do a particular activity.

The License i.e. the subject mater of conveyancing is a right to do, or continue to do, in or upon the immovable property of the grantor and such right does not amount to an easement or an interest in the property. 

Section 4 of the Indian Easement Act defines An easement is a right which the owner or occupier of certain land possesses, as such, for the beneficial enjoyment of that land, to do and continue to do something, or to prevent and continue to prevent something being done, in or upon, or in respect of certain other land not his own.



Though the easement is a right of the owner and the occupier as well and further licensee after getting license becomes occupier does not get this right (easement).


So far as the  the an interest in the property is concern, the same has not been defined anywhere in the Indian Statues. Some judicial pronouncements have been delivered upon this by the Hon'ble Court in India but the same are also not elucidative. A licence is a privilege to do something in a property, otherwise not permissible. Suresh Chander Vohra v Union of India A. I. R. 1987 Delhi 154




 

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