Lease And License Chandigarh

Lease And License – Chandigarh

Lease – a transfer of right in immovable property made for a certain time in consideration of a price to the transferor by transferee is called lease.

It can be 

  1. Express
  2. Implied
  3. In perpetuity

The term ‘price’ as is referred above includes

  1. Price paid
  2. Price promised 
  3. Share of crop
  4. Services
  5. Any other thing of value

Payable periodically or on specified occasion

The transferor is called the lessor. The transferee is called the lessee. The price is called premium. The money, share, services, or other thing to be rendered is called rent.

A lease for agriculture or manufacturing purpose is deemed to be a lease from year to year.

It is terminable on the part of either lessor or lessee by six months’ notice expiring with the end of the year of tenancy.

A lease for any other purpose is deemed to be a lease from month to month. It can be terminated by either lessee or lessor by giving a 15-day notice expiring with the end of month from tenancy.

The legal requirements for the issuance and dispatch of notice are that

  1. It must be in writing 
  2. It must be signed by the person or on his behalf giving the notice
  3. It should be either sent by post or it should by delivered personally to such party or one of his family or servant at his residence.

In case such delivery is not possible then in that event it should be affixed to conspicuous part of the property.

All leases from year to year and from period beyond one year are required to be registered under the Indian Registration Act 1908. Such lease needs to be executed by both lessor and lessee. Other leases can be either made by registered instrument or oral agreement followed by delivery of possession.


In case lessor transfers his rights in the leased property then the transferee shall possess all the rights and shall be subject to all the liabilities. However, the transferee is not entitled to arears of rent due before the transfer.

In a case the lessee remains in possession of the property after the expiry of period of lease, then such lessee is known as holding over lessee and the lease gets automatically renewed from year to year or month to month as the case may be.


A licence is a permission to use particular thing by one party to another for a specific period. It is different from lease in the following way that licence has three essential characteristics.

  1. It can be revoked at will
  2. The licensor exercises complete control over the premises
  3. The services  are rendered by licensor for limited use of licensee.

#  In case of transfer of property, the license is terminated and is enforceable against the new owner

#   In case of death of either party, the licence is terminated.

#  Since the licence is granted with a condition of its revocation at will, therefore relief of specific performance is not grantable by the Court.

#  The best example of licence is a licence to watch Movie at Cinema Hall.

#  A licence is valid for a particular length of time.

#  It cannot be extended beyond the particular length of time without the consent of licensor.

#   The term Holding Over is applicable in the case of lease is not applicable to licences.

#  A licence does not require consideration. It can be created with or without consideration.

#  It can be revoked at the will of the licensor. However if a particular time period is prescribed in the license and license is terminated with in the said period, then the licensee can claim damages from licensor


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