The law governing leave and license agreement in India is governed by the Indian Contract Act of 1872 and the Transfer of Property Act of 1882. It is necessary to have a written agreement in place for a leave and license transaction, which is a contract between the property owner (licensor) and the licensee (tenant) that allows the latter to occupy the property.
As per the law, a leave and license agreement must be registered with the local sub-registrar`s office. This is a mandatory requirement under Section 17 of the Registration Act, 1908. The registration fee varies from state to state and is usually a percentage of the annual rent payable.
The duration of the leave and license agreement is determined by the parties involved. It can be for a fixed term or can be renewed periodically. The licensor is required to give a notice period of 30 days to the licensee if the contract is not going to be renewed beyond the original term.
The agreement should clearly specify the details of the property, the duration of the agreement, the rent payable, and the date of payment. The licensee must also abide by the terms and conditions mentioned in the agreement, including maintaining the property, paying bills like electricity and water bills, and not subletting the property.
The law also has provisions that allow the licensor to seek eviction of the tenant in case of any breach of the terms and conditions mentioned in the agreement. The agreement should also specify the compensation to be paid by the licensee in case of any damage caused to the property during the occupation.
It is also important to note that the leave and license agreement does not create any ownership rights on the property for the licensee. The licensor continues to remain the legal owner of the property, and the licensee only has the right to occupy it for the duration specified in the agreement.
In conclusion, the law governing leave and license agreement in India is well-defined, and it is crucial for both the licensor and licensee to abide by the terms and conditions mentioned in the agreement. The registration of the agreement with the local sub-registrar`s office is a must, and any breach of the agreement can lead to eviction and legal action.