Leave And Licence Agreement - Mumbai (India)

Leave And Licence Agreement for use in Mumbai, India.

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This kit includes tools and guidelines to assist you in drafting a Leave And Licence Agreement.

A Leave and Licence Agreement, as defined in Section 52 of the Indian Easements Act, 1882, gives the licensee the right to use and occupy the Licensed Premises for a limited duration. A Leave and Licence Agreement does not give tenants any ownerships right of the property, nor does it provide the same non-eviction protections given in a Tenancy Agreement, rather the license to occupy can be terminated as per the terms of the agreement or otherwise and licensor can demand possession back from the licensee.

This kind of agreement is specific to the city of Mumbai where owner prefer to use this agreement rather than a standard Tenancy or Lease Agreement in order to save on the Stamp Duty and registration charges. A Leave & License agreement is usually for a period of 36 months.

Under Section 55 of the Maharashtra Rent Control Act, 1999, it is compulsory that all Leave and Licence agreements should be in writing and registered. The penalty for failure to register is imprisonment up to 3 months, or a fine up to Rs. 5000 or both.

Among others, this form includes the following key provisions:
  • Description of property for rent
  • Licensed Fee and Security Deposit
  • Taxes, Water, Electricity and other charges
  • Use, No Transfer and Fittings
  • Licensor's entry into Licensed Premises
  • Maintenance
  • Termination
This attorney-prepared Leave And Licence Agreement packet contains:
  1. Description and Instructions for Leave And Licence Agreement
  2. Leave And Licence Agreement for use in India
Law Compliance: This form is designed for use in Mumbai India.
Number of Pages6
DimensionsDesigned for Letter Size (8.5" x 11")
EditableYes (.doc, .wpd and .rtf)
UsageUnlimited number of prints
Product number#33491
This is the content of the form and is provided for your convenience. It is not necessarily what the actual form looks like and does not include the information, instructions and other materials that come with the form you would purchase. An actual sample can also be viewed by clicking on the "Sample Form" near the top left of this page.












Leave and License Agreement
(India)













This Packet Includes:
   1. Description and Instructions
   2. Leave and License Agreement






General Description and Instructions
Leave and License Agreement
(India)

A Leave and License Agreement, as defined in Section 52 of the Indian Easements Act, 1882, gives the licensee the right to use and occupy the Licensed Premises for a limited duration.  A Leave and License Agreement does not give tenants any ownership rights of the property, nor does it provide the same non-eviction protections given in a Tenancy Agreement.  Rather, the license to occupy can be terminated as per the terms of the agreement or otherwise and licensor can demand possession back from the licensee.

This kind of agreement is specific to the city of Mumbai where owners prefer to use this agreement rather than a standard Tenancy or Lease Agreement in order to save on the Stamp Duty and registration charges.  A Leave and License agreement is usually for a period of 36 months.
 
Under Section 55 of the Maharashtra Rent Control Act, 1999, it is compulsory that all Leave and License Agreements should be in writing and registered. The penalty for failure to register is imprisonment up to 3 months, or a fine up to Rs. 5000 or both.  Further, the responsibility of getting the agreement registered lies upon the landlord/owner and in the absence of a written agreement, the licensees version of the terms and conditions will be accepted.  Please note, however, that if your flat is in a Co-operative Housing Society, the Society may insist on receiving a copy of the agreement before it grants permission to you to give the flat on leave and license.

Note: Owners/Landlords must seek independent legal/taxation advice as to the amount of income tax to be paid, standard deduction earned on repairs and municipal taxes/ charges to be paid to the Municipal Authorities.








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LEAVE AND LICENSE AGREEMENT

This Leave And License Agreement (“Agreement”) is made at ____ this ____ day of  _______ 200__, between Mr. /Ms._______________ hereinafter referred to as the “Licensor” of the One Part and Mr./Ms. ____________________of _________ hereinafter referred to as the “Licensee” of the Other Part, as follows:

WHEREAS  the  Licensor is the absolute  owners  of  the Property  bearing  No.___ , _________________________________[Details] more  fully  described  in  the  Schedule  below and hereinafter referred to as the “Licensed Premises”;
 
WHEREAS the Licensee is in need of residential accommodation [OR office space] for a temporary duration to _________________________________________[Mention purpose], the Licensee has approached the Licensors to give the aforesaid premises on leave and License basis on the terms and conditions agreed herein below;

AND WHEREAS the Licensor has agreed to grant leave and license to the Licensee to occupy and use the aforesaid premises [ or said ground floor portion of the said building and which portion is shown on the plan hereto annexed by red boundary line] on the following terms and conditions agreed to between the parties hereto;

NOW IT IS AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS:

1) Grant

In consideration of the License fee agreed to be paid by the Licensee to the Licensors, the Licensors hereby agree to give on leave and license basis to the Licensee the use and occupation the Licensed Premises for a period of ___ months from __________, subject to the following terms and conditions set forth in this Agreement.

2) Licensed Fee

The Licensee shall pay to the Licensor a sum of Rs________ per month (calculated at the rate of Rs________   per square foot) as License fee or compensation to be paid in advance for each month on or before the  _____ day of each month.

3) Security Deposit

The Licensee has agreed to pay a sum of Rs.________ to the Licensors as interest free refundable security deposit (“Deposit”) which is to be refunded to the Licensee on the Licensee vacating and delivering vacant possession of the Licensed Premises.

4) Taxes   

All the Municipal taxes and other taxes and levies in respect of the Licensed Premises will be paid by the Licensor alone.



5) Water, Electricity and other charges

Licensee shall be responsible for paying all the electric charges and water charges for electric and water consumption and other charges such as maintenance charges in the said Licensed Premises. For the sake of convenience a separate electric and water meter if possible will be provided in the said premises and Licensor shall be responsible for forwarding all such charge bills to Licensee on appropriate dates in a month during the term of this Agreement.

6) Use

A) The Licensor shall allow Licensee to use the open space near the entrance to the Licensed Premises and shown on the said plan by green wash for parking cars [if for office premises then add: during working hours of the Licensee and not for any other time] and no car or other vehicle will be parked on any other part of the said plot.

B) The Licensed Premises will be used only for carrying on business and for no other purpose.

7) No Transfer

Licensee will not be entitled to transfer the benefit of this Agreement to any third party or will not be entitled to allow any third party to occupy the Licensed Premises or any part thereof. Nothing in this Agreement shall be deemed to grant a lease and the licensee agrees and undertakes that no such contention shall be taken up by the Licensee at any time.

8) Fittings

The Licensed Premises have normal electricity fittings and fixtures. If the Licensee desires to have any additional fittings and fixtures, the Licensee may do so at his cost and in compliance with the applicable rules and laws. The Licensee shall remove such fittings and fixtures on the termination of the Agreement failing which they shall be deemed to be the property of the Licensor.

9) Licensors entry into Licensed Premises

Both parties agree that Licensor will have the right to enter upon the premises at any time during working hours to inspect the Licensed Premises upon prior notice of 24 hours.

10) Maintenance

A) The Licensee shall not carry out any structural changes, repairs or additions or alterations to the said Licensed Premises without the prior consent of Licensor. Only such alterations or additions as are not of structural type or of permanent nature may be allowed to be made by the Licensee inside the Licensed Premises with the previous permission of the Licensor.

B)  The  Licensee shall  use the Licensed Premises and all  the fittings  and  fixtures therein in prudent manner and  shall  not cause  any damage thereto, save and except wear and tear  in  the normal  course.  The Licensee agrees that in the event  of  there being any damage to the Licensed Premises or any of the  fittings and  fixtures, the same shall be replaced by the Licensee at  its entire cost;
11) Peaceful Possession

The Licensee shall not cause any nuisance or annoyance to the people-in the neighbourhood or store any hazardous goods on the Licensed Premises.

12) Termination

A) If the Licensee commits a breach of any term of this agreement then notwithstanding anything herein contained the Licensor will be entitled to terminate this agreement by fifteen days' prior notice to the Licensee.  

B) On the expiration of the said term or period of the License or earlier termination thereof, the Licensee shall hand over vacant and peaceful possession of the Licensed Premises to the Licensor in the same condition in which the Licensed Premises now exist subject to normal wear and tear. The Licensee's occupation of the Licensed Premises after such termination will be deemed to be that of a trespasser.

C) If at any time during the term of this agreement the Licensed Premises is destroyed or damaged by force majeure rendering it unfit for use then this agreement will stand terminated.

13) Stamp Duty
 
 The Licensor and the Licensee agree to pay the stamp duty equally for this Agreement.

14) Sale of Licensed Premises

The Licensor covenants with the Licensee as follows, that in the event the Licensor desires to sell or dispose of the Licensed Premises during the term of this Agreement, the Licensor shall be entitled to do so without affecting the rights of the Licensee and such sale of disposal shall be subject to the rights of the Licensee under this Agreement.

15) Liability

The Licensor will not be held responsible or liable for any theft, loss, damage to or destruction of any property of the Licensee in the Licensed Premises and/or for any bodily harm or injury to any person in the Licensed Premises, due to any reason whatsoever.

16) Dispute Resolution; Jurisdiction

A) In the event of any dispute or difference arising between the Licensor and the Licensee hereto concerning or relating to these presents or the interpretation or effect of any provisions thereof or relating to the liability or obligation on the part of any of the parties hereto, the same shall be referred to Arbitration of two Arbitrators appointed by both the parties and such Arbitrators shall appoint an umpire and the award passed by them shall be binding on both the parties. The Arbitration shall be in Mumbai and in accordance with and subject to the provisions of the Arbitration and Conciliation Act, 1996 or any statutory modifications or re-enactment thereof for the time being in force.
.
B) This Agreement shall be subject to the jurisdiction of courts in _________________.

IN WITNESS WHEREOF the parties hereto have put their hands the day and year first hereinabove written.

Signed by the within named Licensor Shri _____________________________
in the presence of _____________________________

Signed by the within named Licensee Shri _____________________________
in the presence of _____________________________



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