Rajendran (Consultant) 01 July 2017

Leave and licence agreement

I am from Chennai, Tamil Nadu , India. My father Rented a premises for Rent of Rs.500/-.... for 700sq.ft. 25- 30 years before. the case was in the court for about 25 - 30 years. She just vacated the premises when the court fixed a fair rent of Rs. 12,000/-. pm. the case was in the court for decades.

I would like to Rent my flat according to LEAVE AND LICENCE AGREEMENT. where can I download my a Copy?. What are the Pro's and Con's of LEAVE AND LICENCE AGREEMENT. according to Tamil Nadu?. This comes under Indian Contract Act. (Which means Tamil Nadu Rent Contraol Act does not comes into effect......). If the Tenant does not vacats the premises can the landlord ask for penalty fee till he vacates the premises along with the Rent?. if the tenant does not pays the rent in time can we place a penalty in Rent?.

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2 Replies

naresh A Mr. (Others) 02 July 2017

I am not a legal expert and just like you I was thinking of using a Leave and License for letting out my flat in chennai. I searched a lot through the net and even asked a friend of my brother who is a lawyer in delhi. There are not too many articles etc available in net for leave and license agreement in Chennai. All leave and license related stuff were mostly related to Mumbai or Maharashtra only. The impression that I got from whatever i could find on the net and from the lawyer friend is that Leave and License in Chennai is used only for letting out commercial property and not for letting out residential property. In Maharastra the leave and license is used for residential properties also. But since the lawyer friend practises in delhi am not sure if he knows practises in chennai though he is actuall a chennaite.

SO better consult a reputed lawyer in person if you are very particular on a leave and license agreement for residential premises. It should not be a case that you put a leave and license agreement and later find out it is invalid in Chennai. SO pls do the due diligence. Otherwise you can use a Lease Agreement.

And regarding whether you can put a penalty till the tenant vacates the premises...and/or penalty for late paying of rent....yes that can be put in the agreement in clear words whether it is a leave and license or Lease agreement. That you can tell the document writer or the lawyer who would prepare the agreement and they will put it in the agreement.

Rajendran (Consultant) 02 July 2017

Thank you for your Sugggestion.

A rental / lease agreement cause a transfer of interest from the owner to the tenant, or lessor to the lessee.

In Tenancy / Rent Agreement,The rent control court has to be approached in the event of a dispute. The amenities provided to the tenant cannot be disrupted or withdrawn even on failure to pay the rent! The rent-control act is considered to be strongly in favour of the tenants and limiting the power of the landlord to reclaim the property.

The "Leave and License", which is an easement right and is defined and governed u/s 52 of the Indian Easements Act,1882. A 'Leave & License' ensures that there is no transfer of interest from the Licensor to the Licensee. It is License to occupy and use the premises in the mentioned duration on mutually agreed terms.

If the Licensee continues to occupy the property upon the cessation of the License or upon the prescribed notice period, they will be considered as unlawful occupants and action initiated against them for immediate eviction.

Any Senior Advocate / Consel Comment?.