Evic­tion or­der af­ter ex­piry of Leave and Li­cence pe­riod

Accommodation Times - - Real Estate Investments - By Le­gal Cell

A li­cense is de­fined un­der Sec­tion 52 (Chap­ter VI) of the In­dian Ease­ment Act, 1882. The def­i­ni­tion of li­cense reads as fol­lows:

“Where one per­son grants to an­other, or to a def­i­nite num­ber of other per­sons, a right to do, or con­tinue to do, in or upon the im­mov­able prop­erty of the grantor, some­thing which would, in the ab­sence of such right be un­law­ful, and such right does not amount to an ease­ment or an in­ter­est in the prop­erty, the right is called a li­cense.”

Un­der Sec­tion 28 of the Reg­is­tra­tion Act, 1908, ev­ery doc­u­ment should be reg­is­tered un­der Sec­tion 17 of the said Act, has to be pre­sented for reg­is­tra­tion in the of­fice of Sub-Reg­is­trar within whose sub-district the whole or some por­tion of the prop­erty to which such doc­u­ment re­lates is sit­u­ate.

Un­der Sec­tion 55 (1) of the Ma­ha­rash­tra Rent Con­trol Act, 1999, any agree­ment for Leave and Li­cense or let­ting of any premises en­tered into be­tween the land­lord and the tenant or the li­censee as the case may be should be in writ­ing and should be reg­is­tered un­der the Reg­is­tra­tion Act, 1908.

The pos­ses­sion of a li­censee is not a ju­ridi­cal pos­ses­sion but only an oc­cu­pa­tion with the pre­mis­sion of the li­censer. While the ac­tual oc­cu­pa­tion re­mains with the li­censee, the con­trol or pos­ses­sion of the prop­erty is with the li­cen­sor through his li­censee.

Dif­fer­ence be­tween Lease and Li­cence:

The Deed of Lease, un­der - lease or sub-lease cre­ates an in­ter­est or trans­fer an in­ter­est in the prop­erty in favour of the Leasee dur­ing the pe­riod of lease; while li­cense is only a per­mis­sion to use or oc­cupy or en- joy the premises and to do cer­tain things or acts which oth­er­wise will amount to tres­pass. There­fore an agree­ment of leave and li­cense un­der no cir­cum­stances can be charged with stamp duty un­der Ar­ti­cle 36 of Sched­ule I of the Bom­bay Stamp Act.”

The Li­cen­sor (Owner of the flat) can file an ap­pli­ca­tion for evic­tion un­der Sec­tion 24 of the Ma­ha­rash­tra Rent Con­trol Act, 1999 if the Li­censee not ready to va­cate flat/premises af­ter ex­piry of the Li­cence pe­riod.

In one of the High Court judge­ment Amit B. Dalal V/s Rajesh K. Doc­tor, the Writ Pe­ti­tion was filed by Pe­ti­tioner un­der Sec. 24 of Ma­ha­rash­tra Rent Con­trol Act 1999, the dis­pute was re­gard­ing flats given on leave and li­cence agree­ment but the said agree­ment not reg­is­tered un­der reg­is­tra­tion Act. The com­petant au­thor­ity di­rected pe­ti­tioner to va­cate the flat then Pe­ti­tioner pre­ferred re­vi­sion which also re­jected by Ld. Ad­di­tional Com­mis­sioner, hence the Writ Pe­ti­tion filed in High Court is­sue was re­gard­ing ef­fect of non reg­is­tra­tion of agree­ment of agree­ment of Leave and Li­cence – Leave and Li­cence agree­ment not re­quired reg­is­tra­tion un­der Reg­is­tra­tion Act. Sec. 49 of reg­is­tra­tion Act, ap­pli­ca­ble only to doc­u­ments u/s 17 of Reg­is­tra­tion Act or un­der Trans­fer of Prop­erty Act. Un­reg­is­tered doc­u­ment which re­quire reg­is­tra­tion u/s 55 of Reg­is­tra­tion Act can be read in ev­i­dence pro­vided same is proved and same is oth­er­wise ad­mis­si­ble in ev­i­dence WP dis­missed.

What does Sec. 24 of Ma­ha­rash­tra Rent Con­trol Act, 1999 says?:

Sec­tion 24: “Land­lord en­ti­tled to re­cover pos­ses­sion of premises given on li­cence on ex­piry….

( 1) Not­with­stand­ing any­thing con­tained in this Act, a li­censee in pos­ses­sion or oc­cu­pa­tion of premises given to him on li­cence for res­i­dence shall de­liver pos­ses­sion of such premises to the land­lord on ex­piry of the pe­riod of li­cence; and on the fail­ure of the li­censee to so de­liver the pos­ses­sion of the li­censed premises, a land­lord shall be en­ti­tled to re­cover pos­ses­sion of such premises from a li­censee, on the ex­piry of the pe­riod of li­cence, by mak­ing an ap­pli­ca­tion to the Com­pe­tent Au­tor­ity, and, the Com­pe­tent Au­tor­ity, on be­ing sat­is­fied that the pe­riod of li­cence has ex­pired, shall pass an or­der for evic­tion of a li­censee.

(2) Any li­censee who does not de­liver pos­ses­sion of the premises to the land­lord on ex­piry of the pe­riod of li­cence and con­tin­ues to be in pos­ses­sion of the li­censed premises till he is dis­pos­sessed by the Com­pe­tent Au­tor­ity shall be li­able to pay dam­ages at dou­ble the rate of the li­cence fee or charge of the premises fixed un­der the agree­ment of li­cence.

(3) The Com­pe­tent Au­tor­ity shall not en­ter­tain any claim of what­ever na­ture from any other per­son who is not a li­censee ac­cord­ing to the agree­ment of li­cence. Ex­pla­na­tion.For the pur­poses of this sec­tion,

(a) the ex­pres­sion “land­lord” in­cludes a suc­ces­sor-in-in­ter­est who be­comes the land­lord of the premises as a re­sult of death of such land­lord; but does not in­clude a tenant or a sub­tenant who has given premises on li­cence;

(b) an agree­ment of li­cence in writ­ing shall be con­clu­sive ev­i­dence of the fact stated therein.”

The Rights of the Land­lord/ owner is pro­tected by the said judg­ment.

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