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Category: Lease, License

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Lease, License

Sivayogeswara Cotton Press v. M. Panchaksharappa, AIR 1962 SC 413

ISSUE:

Whether or not the lease deed evidences a perpetual grant to the lessee on the terms and conditions contained in the lease deed?

RULE:

It is always open to a lessee of whatever description to surrender his leasehold interest to the lessor, by mutual consent. The surrender was to be in express terms agreed to by the parties, at any time after the lapse of the initial period of twenty years. Such a stipulation for the benefit of the lessee cannot be construed as in derogation of the permanency of the tenure, if the parties otherwise agreed to create such a tenure.

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Lease, License

Shanti Devi v. Amal Kumar AIR 1981 SC 1550 23

ISSUE:

Whether the plaintiff's suit for ejectment was not maintainable without a notice under Section 106 of the Transfer of Property Act, 1882?

RULE:

The lease was a lease for a definite term and, therefore, expired by efflux of time by reason of Section 111(a) of the Transfer of Property Act. That being so, the service of a notice under Section 106 of the Transfer of Property Act was not necessary.

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Lease, License

Laxmidas Bapudas v. Rudravva 2001 (2) SCC 409

ISSUE:

Whether or not, a petition under Section 21 (1)(h) of the Karnataka Rent Control Act, for eviction of a tenant under a contractual fixed term lease, would be maintainable on the ground of reasonable and bona fide requirement of the landlord?

RULE:

There is nothing to indicate nor it has been held in any case that in view of Section 21 of the Karnataka Rent Act a contract of fixed term tenancy stands obliterated in totality. Nothing has been indicated by reasons of which it can be concluded that a contract of tenancy loses significance on coming into force of the Karnataka Rent Act.

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Lease, License

Associated Hotels of India Ltd. v. R.N. Kapoor (AIR 1959 SC 1262)

ISSUE:

Whether the document executed by the parties is a Lease or a License?

RULE:

The following propositions may, therefore, be taken as well-established:
To ascertain whether a document creates a licence or lease, the substance of the document must be preferred to the form;
The real test is the intention of the parties - whether they intended to create a lease or a licence;
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, of which the legal possession continues with the owner, it is a licence; and
If under the document a party gets exclusive possession of the property, prima facie, he is considered to be a tenant; but circumstances may be established which negative the intention to create a lease.

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Lease, License

Bharat Petroleum Corporation Ltd. V. Chembur Service Station, 2011(4) SCALE 209

ISSUE:

What is the nature of a licence that is granted to the respondent by the appellant under the DPSL agreement?

RULE:

Licences can be of different kinds. Some licences with reference to use of immovable property may be very wide, virtually bordering upon leases. Some licences can be very-very narrow, giving a mere right enabling a person to visit a premises. All licences cannot be treated on the same footing.

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