Distinguish between the following: License and lease.
CS Professional · Drafting, Pleadings and Appearances · PYQS · December 2019
Distinguish between the following: License and lease.
Answer & Explanation:
The license is not a lease. The lease and the license both are different. The word "License" under Section 52 of the Indian Easement Act, 1882 is a grant by one person to another or to a definite number of 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. A lease of immovable property as per Section 105 of the Transfer of Property Act defined as lease of immoveable property is a transfer of a right to enjoy such property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee, who accepts the transfer on such terms. Lessor, lessee, premium and rent defined. The transferor is called the lessor, the transferee is called the lessee, the price is called the premium, and the money, share, service or other thing to be so rendered is called the rent. In Khalil Ahmed Bashir Ahmed v. Tufelhussein Samasbhai Sarangpurwala, 1988 SCC 155, the Supreme Court has held: "In order to determine whether a document created a license or a lease the real test is to ascertain the intention of the parties i.e. whether they intended to create a license or a lease. If the document creates an interest in the property entitling the transferee to enjoyment, then it is a lease; but if it only permits another to make use of the property without exclusive possession, then it is a license."
Topics: Property Law
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