Distinguish between Lease and Licence.

The cardinal distinction between a lease and a license is that in a lease there is a transfer of interest in the premises, whereas in the case of a license there is no transfer of interest, although the licensee acquires a right to occupy the premises. In a number of cases the Apex Court has distinguished lease and license. 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. It appears that the main factors to decide whether the agreement is a lease or a license are (i) the intention of the parties and (ii) whether the agreement creates an interest in the property.