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Licence And Lease

Legal definition for Indian law research

Definition

Licence and lease, A licence confers a right to do or continue to do something in or upon immovable property of grantor which but for the grant of the right may be unlawful, but it creates no estate or interest in the immovable property of the grantor. A lease on the other hand creates an interest in the property demised, Sohan Lal Naraindas v. Laxmidas RaghunathGadit, (1971) 1 SCC 276: (1971) 3 SCR 319[ Transfer of Property Act, 1882, s. 105]

A tenant protected by a statute is entitled to create a licence. The licence is not an interest in property. It is purely a personal right, Chandavarkar Sita Ratna Rao v. Ashalata S. Guram, AIR 1987 SC 117 (132): (1986) 4 SCC 447.

Means a licence granted under section 15 to use the Indian Standards Certification Mark in relation to any article or process which conforms to the Indian Standard and includes any licence granted under the Indian Standards Institution (Certification Marks) Act, 1952 and is in force immediately before the date of establishment of the Bureau. [Bureau of Indian Standards Act, 1986 (63 of 1986), s. 2 (j)]

It means a licence to import or export and includes a customs clearance permit and any other permission issued or granted under this Act. [Foreign Trade (Development and Regulation) Act, 1992, s. 2 (g)]

The test to ascertain whether instrument is a licence or lease, substance of the document must be preferred to the form; the real test is the intention of the parties, if the document creates an interest in the property, it is a lease; but, if it only permits another to make use of the property on which the legal possession continues with the owner, it is a licence; under the document a party gets exclusive possession of the property, 'prima facie' he is considered to be a tenant, Associated Hotels of India Ltd. v. R.N. Kapoor, AIR 1959 SC 1262: (1960) 1 SCR 368.

The occupier paying 'rent' may be a licensee and not a tenant, Dr. H.S. Rikhy v. New Delhi Municipal Committee, AIR 1962 SC 554.

Definitions are for legal research. Always verify meaning in the context of the statute, judgment, or jurisdiction cited.

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