Ritika Ahuja (Analyst) 01 January 2023

Query - leave and license agreement

Background: Landlord entered into a Leave and License Agreement in May 2021. In December 2022, his broker came with prospective buyers for the flat and a prospective tenant. The tenant disallowed the broker from bringing in customers. The Landlord then called the tenant and verbally stated he wishes to take the flat on sale and find an alternate tenant and hence wishes to terminate the agreement. The tenant disagreed to this. The landlord then sent a notice of termination providing one months of notice for vacating the flat.

Cancelation clause as per L&L: That, subject to the condition of lock in period (if any), if the Liscensee commits detault in regular and punctual payments of monthly compensation as herein before mentioned or commit/s breach of any of the terms, covenants and conditions of this agreement or if any legislation prohibiting the leave and license is imposed, the licensor shall be entitled to revoke and/or cancell the license hereby granted, by giving notice in writing and the Licensee too will have the right to vacate the said premises by givign a notice in writing of one month to the Licensor as mentioned earlier.

Termination notice sent by liscensor: We have entered with you the above subjected Leave and Liscense Agreement dated xxxx as a Licensor. We wish to terminate the said agreement in line with the various terms & conditions mentioned therein. We hereby give you one-month advance notice of termination of the said agreement and request you to handover the vacant peaceful possession of the flat.....[No reason provided by the landlord in writing]

The tenant has paid rents on time and has not defaulted on any electricity or other utility bill payments. The L&L agreement has been made under section 24 of the maharashtra Rent Control Act, 1999.

Question: 1. Can the landlord send such a notice of termination? 2. Can the notice of termination sent by the landlord be considered in breach of the terms of the agreement when the tenant has not breached any terms & conditions of the agreement. 3. What is the standard response time to a notice of termination sent by a landlord. 4 What should be the appropriate response to the landlord for such a termination of notice

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2 Replies

Real Soul.... (LEGAL) 02 January 2023

You are not tenant but licensee , and if there is termination clause where either party can terminate the agreement at any time then he has right ot cancel the agreement. But if the termination is subject to conditions and those conditions as appears here is non payment which is not the case here so the license will survive until expiry. Id you have violated any of the terms or conditions of agreement then he can cancel the license .

Reply the notice by stating that you have never breached the terms or lease and the compensation is being paid by you according to terms of agreement regularly, as such until the license period expires you have the right to use the property. You can get injunction from court if his demand persisted, and you can deposit the license fee in the court if he refused to accept.