Leave and Licence Agreement

What this document contains

15 clauses every leave and licence agreement carries, plus 3 you can add.

1. 01

   Parties & Recitals

   The preamble: date and place, the Licensor and Licensee with the recital wording their entityType selects, and the recitals stating that what follows is leave and licence only — no tenancy, no interest in the premises.

2. 02

   Definitions

   The four defined terms every other clause relies on: Licensed Premises, Licence Fee, Licence Period, Security Deposit.

3. 03

   Licensed Premises

   Identifies the premises use of which is licensed — address, furnishing, and any parking or floor particulars. The description is what the police intimation and any registration will carry, so it should match the property records.

4. 04

   Licence Period

   When the licence begins and how long it runs. The period is stated as a fixed term; nothing in the clause creates a right of renewal — any extension needs a fresh written agreement, which keeps the licence a licence.

5. 05

   Licence Fee

   The monthly compensation for use of the premises — deliberately called a licence fee, not rent, because rent presumes a tenancy. Carries the due day, payment mode, and any agreed escalation.

6. 06

   Security Deposit

   The interest-free refundable deposit, the period within which it comes back after the premises are handed over, and what may lawfully be deducted from it.

7. 07

   Licence Only — No Tenancy or Interest

   The clause that makes this instrument what it is: a bare licence under Section 52 of the Indian Easements Act, 1882. No tenancy, sub-tenancy or lease is created; no interest or estate in the premises passes; juridical possession remains with the Licensor; the permission is personal and non-transferable.

8. 08

   Use of the Premises

   What the premises may be used for — reads the shared licenseUse — plus the conduct obligations: no nuisance, no unlawful use, no structural alterations, compliance with society and building rules, and any occupancy limit.

9. 09

   Licensor's Obligations

   What the Licensor carries: property tax and outgoings of ownership, structural and major repairs, undisturbed use while the licence subsists and the Licensee performs, and any society permission needed for the arrangement.

10. 10

    Licensee's Obligations

    What the Licensee carries: paying the fee and usage charges, keeping the premises in good condition, permitting inspection on notice, and returning the premises as received.

11. 11

    Termination & Revocation

    How the licence ends before its date: termination for convenience on notice (outside any lock-in), revocation for unremedied breach, and automatic determination on expiry.

12. 12

    Vacation & Consequences of Overstay

    What happens when the licence ends: immediate vacation and handover, removal of the Licensee's belongings, the Licensor's resumption of full use — possible without dispossession proceedings precisely because possession never passed — and per-day compensation for overstay.

13. 13

    Stamp Duty, Registration & Police Intimation

    The compliance clause: stamp duty in every case; in Maharashtra, compulsory registration under Section 55 of the Maharashtra Rent Control Act, 1999 (the Licensor's duty, with penal consequences for default) and intimation of the Licensee's particulars to the police where required; elsewhere, registration as the parties elect and the general law requires.

14. 14

    Governing Law and Dispute Resolution

    Applicable law, jurisdiction, and dispute resolution mechanism (courts or arbitration under Indian law).

15. 15

    General Provisions

    The closing machinery: entire agreement, written amendments, notices, severability, no waiver by indulgence, counterparts, and the relationship of the parties confined to licensor and licensee.

Optional clauses

• Utilities & Society Charges

  Who bears each utility and the society maintenance charges. Include it when the arrangement departs from the default of usage-billed utilities on the Licensee — bundled PG-style arrangements, or maintenance inside the fee.

  Worth adding when: The parties want utility and maintenance responsibility stated line by line, or bundled into the Licence Fee

• Force Majeure

  Relief from obligations due to events beyond reasonable control — acts of God, pandemics, government action.

  Worth adding when: Longer licences or disaster/pandemic protection

• Custom Clause

  A free-form clause for bespoke provisions not covered by standard clauses. Use clauseId 'custom-clause-1', 'custom-clause-2', etc. to add multiple.

What the law requires

A licence creates no interest in the premises

A leave and licence is bare permission under Section 52, Indian Easements Act 1882 — it must not use tenancy language (demise, rent, lessor/lessee), must keep juridical possession with the licensor, and should state expressly that no tenancy or interest is created and that the permission is personal and non-transferable.

Section 52, Indian Easements Act 1882

Substance over label

Courts look at the substance of the arrangement, not its title: exclusive possession, renewal rights and tenancy-style obligations can turn a document called a licence into a lease. Keep the terms consistent with a licence — entry rights reserved, personal permission, automatic determination.

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

Maharashtra: registration compulsory, duty on the licensor

In Maharashtra every leave and licence agreement must be registered whatever its term; the responsibility is the landlord/licensor's, non-registration is penalised, and the licensee's contention about the terms then prevails. Always include the registration clause with the Maharashtra arm for premises in that state.

Section 55, Maharashtra Rent Control Act 1999

Stamp duty before reliance

The agreement is inadmissible in evidence unless duly stamped under the state's stamp law (Maharashtra: Article 36A). Compute duty on the licence fee and deposit components for the term and stamp before signature.

Section 35, Indian Stamp Act 1899; Article 36A, Maharashtra Stamp Act 1958