Zuben Developers Limited (Referred as 'Zuben Developers'), a real estate development company, permitted Urban Café Private Limited to operate a café within a premium commercial complex owned by it. The agreement executed

Lease vs Licence Courts consistently hold that mere terminology (e.g., "Licence Agreement") is not conclusive. The real intention of the parties and the substance of the transaction determine whether an arrangement is a lease or a licence. Distinction between Lease and Licence Technically, the right to occupy premises under a lease agreement is governed by the provisions of section 105 of the Transfer of Property Act, 1882 whereas the right to occupy licensed premises is governed by section 52 of the Indian Easement Act, 1882. Legal Consequences A lease under the Transfer of Property Act, 1882 creates an interest in immovable property, granting the lessee exclusive possession for a specified term in consideration of rent. It confers statutory protection, and termination must comply with legal procedures. In contrast, a licence under the Indian Easements Act, 1882 merely permits use of property without transferring any interest. It is generally revocable and does not create proprietary rights. The key distinction lies in exclusive possession and intention. In the present case, despite being termed a "licence," the grant of exclusive possession and operational autonomy suggests characteristics of a lease. Legally, a lease provides enforceable tenancy rights and protection against arbitrary eviction, whereas a licence offers limited, contractual rights. Thus, misclassification can lead to unintended legal consequences, including restriction on the owner's right to terminate.