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CASE LIST Associated Hotels of India Ltd. vs. R.N. Kapoor, [19!" 1 SCR #$ %S&pre'e Co&rt, 19(9) o A lease is a transfer of an interest in land. T*e interest transferred is called t*e lease*old interest. T*e Lesser parts +it* *is ri*t to en-o t*e propert d&rin t*e ter' of t*e lease and t*e lessee ets t*at ri*t to t*e e/cl&sion of t*e Lesser. In case of license, t*e leal possession contin&es to 0e +it* t*e o+ner of t*e propert, 0&t o t*e licensee is per'itted to 'ae &se of o f t*e pre'ises for a partic&lar p&rpose. 2&t for t*e  per'ission *is occ&pation +o&ld 0e &nla+f&l. It does not create in *is favo&r an estate or  interest in t*e propert. 3rs. 3.N. Cl&0+ala v. 4ida H&ssain Sa*e0, [195"  SCR 56 %S&pre'e Co&rt, 195) 7*et*er an aree'ent creates 0et+een t*e parties t*e relations*ip of landlord and tenant o or 'erel t*at of licensor and licensee t*e decisive consideration is t*e intention of t*e  parties. T*is intention *as to 0e ascertained on a consideration of all t*e relevant  provisions in t*e aree'ent. C*and& Lal vs. 3&nicipal Corporation of 8el*i, AIR 19$ 8el*i 15 %8el*i Hi* Co&rt, 19$) o T*e intention of t*e parties is t*e real test for ascertainin t*e c*aracter of a doc&'ent. If a doc&'ent ives onl a ri*t to &se t*e propert in a partic&lar pa rtic&lar +a 0&t its possession o and control re'ains +it* t*e o+ner t*ereof, it +ill 0e a license. In s&c* a case t*e leal  possession re'ains +it* t*e o+ner of t*e propert, propert, t*e licensee 0ein per'itted to 'ae &se of t*e propert for a partic&lar p&rpose. E/cl&sive possession does not 'ilitate aainst t*e concept of a license, if t*e o circ&'stances neative an intention to create a tenanc. o A license onl 'aes an action la+f&l +*ic* +it*o&t it +o&ld 0e &nla+f&l, 0&t does not transfer an interest in favor of t*e licensee in respect of t*e propert. In t*e case of a license t*ere is so'et*in less t*an a ri*t to en-o t*e propert in t*e o licensee, +*ile on t*e ot*er *and, in t*e case of a lease, t*ere is a transfer of a ri*t to en-o t*e propert. p ropert. A 0are licensee *avin no interest in t*e propert cannot 'aintain an action for its o  possession. Ra-0ir Ka&r and Anr. vs. S. C*oesiri and Co. AIR 19$$ SC 1$5( T*e :&estion +*et*er a transaction is a lease or licence ;t&rns on t*e operative o perative intention o of t*e parties and t*ere is no sinle, si'ple lit'&s test to distin&is* one fro' t*e ot*er.< T*e rant onl for t*e ri*t to &se t*e pre'ises +it*o&t 0ein entitled to t*e e/c l&sive o  possession t*ereof operates 'erel as a licence. E/cl&sive possession itself is not decisive in favo&r of a lease and aainst a 'ere licence, o for, even t*e rant of e/cl&sive possession 'i*t t&rn o&t to 0e onl a licence and not a lease +*ere t*e rantor *i'self *as no po+er to rant t*e lease. 8elta International Li'ited vs. S*a' S&ndar =aneri+alla > Anot*er, AIR 1999 SC 6! To find o&t +*et*er t*e doc&'ent creates lease or license real test is to find o&t ?t*e o intention of t*e parties@ eepin in 'ind t*at in cases +*ere e/cl&sive possession is iven, t*e line 0et+een lease and licence is ver t*in. 3&nicipal Corporation of 8el*i vs. Bradip il Corporation and Anr., Anr., 1!! %6!!6) 8LT 556 %8el*i Hi* Co&rt, 6!!6) A 'ere license does not create interest in t*e propert to +*ic* it relates. Lease on t*e o ot*er *and, +o&ld a'o&nt to transfer of propert.

License 'a 0e personal or contract&al. A licensee +it*o&t t*e rant creates a ri*t in t*e licensor to enter into a land and en-o it. o 2 reason of a license, no estate or interest in t*e propert is created. o A license, inter alia, %a) is not assina0le %0) does not entitle t*e licensee to s&e t*e o straner in *is o+n na'e %c) it is revoca0le and %d) it is deter'ined +*en t*e rantor 'aes s&0se:&ent assin'ent. 3ad*& 2e*al and Anr. vs. Ris*i K&'ar and Anr., %6!!9) # BLR 6$ %B&n-a0 > Harana Hi* Co&rt, 6!!9) It is never a no'enclat&re in t*e doc&'ent t*at overns t*e decision as to +*et*er a o doc&'ent as a ?lease@ or a ?licence@. T*e essential feat&re t*at distin&is*es a lease fro' licence is al+as a transfer of interest o in t*e de'ised propert in a transaction of lease +*ile a licensee does not involve an s&c* transfer of interest. T*e lease is *erita0le +*ile license is personal to t*e rantee. o o T*e leal possession of t*e propert is inevita0l transferred to a tenant &nder lease +*ile in a transaction of license t*e leal possession contin&es +it* t*e licensee and t*e licensee *as a 'ere ri*t of &ser of t*e pre'ises in a partic&lar fas*ion 'entioned &nder t*e doc&'ent. o

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 [xxix]  In Booker v. Palmer   , Lord =reen stated t*atD ;T*ere is one olden r&le to 0e follo+ed is t*at la+ does not i'p&te an intention to enter  into contract&al relations*ips +*ere t*e circ&'stances and t*e cond&ct of t*e parties neative an intention of t*e ind.< In Cubb v. Lane [xxx] , Lord 8ennin said t*atD ;T*e :&estion in all t*ese cases is one of intention 8id t*e circ&'stances and cond&ct of  t*e parties s*o+ t*at all t*at +as intended +as t*at t*e occ&pier s*o&ld *ave a personal  privilee +it* no interest in t*e land.<

In the case of Bhaurao vs. Geetabai 2013(4) Mh.L.J. 196. Ease'ents act Section !%0) F Irresvoca0le licence Broof of F 'erel 0eca&se t*ere is a +or of per'anent c*aracter e/ec&ted  0 inc&rrin e/penses, +o&ld not 0 itself 0e eno&* to esta0lis* t*at t*e licence +as irrevoca0le. In the case of i!!atrao Marutorao "hoba#e vs. $run Gu#rao Jich%ar& 201' (2) Mh.L.J. '60. Ease'ents Act Section !%0) and Evidence Act Section 11( F Appellant proved t*at respondent is licensee on s&it plot F Responden t constr&cted *o&se on t*e s&it plot and occ&pied and resided in it Respondent cannot 0e denied 0enefit of provisions of section ! %0) 'erel  0eca&se respondent *ad denied t*at *e is a licensee.

I3BRTANT CLAGSES IN LEAE AN8 LICENSE A=REE3ENT AN8 THEIR ALI8IT 3ost of t*e leave and license aree'ent t*at I *ave co'e across *ave follo+in &nder  'entioned cla&ses in t*e leave and license aree'ent. No+ let &s e/a'ine t*e validit, lealit and enforcea0ilit of t*ese cla&ses.

1. Bossession 3ost of t*e leave and license aree'ent s&est t*at possession d&rin t*e entire ter' of t*is aree'ent s*all re'ain +it* Licensor. T*is is perfect +it* t*e nat&re and spirit of t*e aree'ent since e/cl&sive possession is e ele'ent to deter'ine as +*et*er t*e transaction is in t*e nat&re of license or a lease. Ho+ever t+o points needs to 0e noted t*at aree'ent s*o&ld also clearl specif t*at t*ere is no intention to transfer an ri*t or interest in t*e propert per se. 4&rt*er fro' t*e licensee perspective, it is i'portant to 'ention t*at t*e license 0ein ranted to licensee is an e/cl&sive license or else it 'a  0e constr&ed as 0are license. 6. Loc in period 3ost of t*e leave and license aree'ent s&est t*at 0ot* licensor and licensee s*all 0e loced in for a certain ter' of license aree'ent. As noted a0ove, license is al+as ter'ina0le at +ill. An for' of loc 0ein i'posed in t*e aree'ent 'a not *old +ater  in t*e co&rt since it oes aainst t*e ver loic of license. 4&rt*er 0 rantin a license, Licensor  is 'erel rantin a per'issive ri*t to licensee and is not intendin to create an interest in t*e  propert. Even if s&c* loc in cla&se is *eld to 0e valid, licensor can still revoe t*e license and  0e lia0le for da'aes. 4&rt*er in s&c* an event since t*e possession is al+as +it* Licensor, t*ere cannot 0e an clai's on part of licensee as to illeal eviction. In ' opinion, s&c* loc in cla&ses 'a not *old +ater in t*e co&rt and can 0e *eld illeal and void a0 initio. In s&c* an event, t*ere can 0e t+o possi0ilities  F If s&c* cla&se is *eld to 0e leal and perfectl valid +it*in t*e real's of la+, licensee s*all 0e entitled to 'erel da'aes for illeal revocation J ter'ination of license  F If s&c* cla&se is *eld to 0e illeal and invalid, doctrine of severa0ilit s*all co'e into pla and co&rt s*all read t*e entire doc&'ent as if t*e loc in cla&se +as incorporated in t*e aree'ent. In s&c* an event, t*ere can 0e no :&estion of da'aes as +ell. #. I'prove'ent of per'anent c*aracter Let &s e/e'plif t*is sit&ation for t*e sale of clarit. If a 'all o+ner ives a propert to a retailer vide a leave and license aree'ent, +*erein a retailer is  per'itted to carr o&t its fit o&t activities in t*e pre'ises so as to en-o t*e per'ission ranted to a retailer. In co&rse of s&c* fit o&ts, retailer carries o&t i'prove'ents +*ic* are of per'anent in nat&re %s&c* as erection of false ceilin, installation of lifts J escalators etc.), +*at s*all 0e t*e effect of s&c* i'prove'ent on t*e overall nat&re of transaction i.e. leave and license aree'ent. Since Section ! of t*e Act clearl states t*at +*ere licensee actin &pon t*e license, *as e/ec&ted a +or of per'anent c*aracter and inc&rred e/penses in t*e e/ec&tion, license 0eco'e irrevoca0le. In ' opinion, even in s&c* cases t*e license is ter'ina0le at +ill and t*e onl re'ed availa0le to Licensee for s&c* i'proper revocation s*all 0e clai' for da'aes and co'pensation for t*e i'prove'ents so 'ade. 5. E/cl&sive Bossession 3ost of t*e leave and license aree'ents fail on t*is co&nt. It is i'perative for t*e retailer t*at aree'ent clearl and &ne:&ivocall states t*at licensor is rantin and licensee is entitled to e/cl&sive license for t*e propert. It '&st 0e noted t*at t*ere

is clear c&t distinction 0et+een e/cl&sive license and e/cl&sive possession. T*ere 'a 0e an e/cl&sive license 0ein ranted to licensee, 0&t t*e fact re'ain t*at t*e e/cl&sive possession is al+as +it* t*e Licensor and for +ant of +*ic* it s*all 0e ver stron indicator of t*e instr&'ent  0ein lease +it* no'enclat&re 0ein &sed as license. (. Notice As noted a0ove, t*o&* t*ere is not stat&tor re:&ire'ent for a licensor to ive notice to licensee +*ile revoin t*e license, 0&t t*e principles of nat&ral -&stice de'ands t*at s&c* notice s*o&ld 0e iven 0 t*e licensor. 4&rt*er t*ere is no 0ar in la+ +*erein 0ot* licensee and licensor arees to certain for' notice to 0e iven 0 licensor to licensee 0efore an ind of  revocation of license 0 t*e licensee. In t*e event s&c* provision of notice is areed, it s*all 0e contract&al o0liation of Licensor to provide s&c* notice to licensee. . Kes and Locs +it* t*e Licensor It is often +ritten in t*e leave and license aree'ent t*at es and locs of t*e pre'ises s*all for all p&rposes +ill 0e +it* licensor. T*is -&st reinforces t*e fact t*at t*e possession at all ti'es is +it* licensor and licensor *as ranted 'erel per'issive ri*ts to t*e licensee. 2&t fro' t*e licensee perspective it is i'portant to *ave s&fficient  protection in t*e aree'ent t*at in t*e event t*ere is an t*eft or loss or da'ae of t*e c*attels  0elonin to licensee d&rin t*e access 'ade 0 licensor in t*e a0sence of licensee, licensor s*all  0e lia0le for t*e sa'e and licensee s*all d&l inde'nified in t*is reard. . Assin'ent to licensee@s ro&p J associate co'panies ften Licensee@s insist for a cla&se +*ere t*e are entitled to assin t*e leave and license ri*ts to t*eir ro&p J associate J sister  co'panies. 3ore often t*an not s&c* a cla&se is 'erel copied in ditto fro' t*e lease for'ats and pasted in t*e leave and license aree'ent. Ho+ever in vie+ of e/press provisions &nder t*e la+ relatin to nonDtransfera0ilit of license ri*ts and license ri*ts 0ein personal in nat&re, s&c* a cla&se s*all not *old valid in co&rt of la+. In fact licensee is s&ested to incorporate a s&ita0le cla&se +*erein licensor is &nder an o0liation to e/ec&te a fres* license in favo&r of  ro&p J associate J sister co'panies if and +*en desired 0 t*e licensee. In s&c* a +a, it is not t*e licensee +*o is transferrin and licensor s*all 0e t*e one +*o s*all 0e creatin a fres* license.