• Renewal of Leave & License Agreement beyond 33 months

I have an apartment at Sakinaka, Andheri E, Mumbai. It is a 2 BHK licenced to a gentleman working for United Insurance Brokers as a VP. The leave and license agreement has been renewed twice for 11 months and he has completed 33 months staying there with the L&L agreement renewed every 11 months and the registration done each time. Only the deposit cheque is continued across all 3 agreements.

He is requesting for a 11 month further extension. Again we will enter into a 11 months L&L agreement before the expiry date of the previous agreement. I have a few clarifications required here, pl guide :

1. Is it legally safe to renew beyond 33 months or does post 33 months, continuity of the same licensee accrue some rights like tenancy etc.?
2. Is it better if I give a month gap before renewing to him for the 4th tenure, returning the deposit money and getting a fresh cheque
3. Does the L&L agreement need some modifications 
4. Is it better, not to continue, go for another party as licensee.
Asked 7 years ago in Property Law
Religion: Hindu

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4 Answers

1. If you break the total period into phased manner of 111 months each there is no problem.

2. Yes giving a month gap is also a good idea.

3. Without seeing the contents of the LL agreement I can not advise whether it requires any changes or not.

4. If you're not comfortable and good tenants are available you can go for change.

Devajyoti Barman
Advocate, Kolkata
22920 Answers
497 Consultations

5.0 on 5.0

1) it is safe to renew agreement on expiry beyond period of 33 months

2) you can give gap of one month for renewal if you do desire

3) better continue with the same licencee

Ajay Sethi
Advocate, Mumbai
95197 Answers
7607 Consultations

5.0 on 5.0

1. The tenant, if the agreement is registered, then shall be protected by tenancy rights irrespective of the tenure of tenancy.

2. There is no need for that. The tenancy can be renewed for another period of 11 months.

3. If you would like to have some contents to be included or deleted, you can very well amend the existing agreement or can enter into a fresh agreement with the incorporation of the desired conditions.

4. There is nothing wrong in continuing the current L&L agreement.

There is a practice prevalent in Bombay that Leave & Licence Agreement in respect of a residential premises is entered into and executed for a maximum period of 11 months. The question arise whether it can be for more than 11 months.

A licence has been defined in Section 62 of the Indian Easement Act, as a right to do or continue to do something in or upon an immovable property . It does not transfer the interest or create any interest in the immovable property , like a lease as defined in Section 105 of the Transfer of Property Act, as a right to enjoy property for a certain period in consideration of the price paid. Provisions of Section 62 of the Indian Easements Act do not prescribe , any minimum or maximum period for which a licence may be granted.

T Kalaiselvan
Advocate, Vellore
85398 Answers
2235 Consultations

5.0 on 5.0

1. You can renew the agreement as many times as you like. The licensee will remain a licensee only despite the number of times the agreement gets renewed.

2. No interregnum period is required before renewing the agreement.

3. Get the LL agreement vetted by a lawyer to know if changes are required to be made.

4. There is no legal requirement to induct another tenant instead of the present one.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

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