From an early easement, the term was derived from the Latin word Aisementum,
which means comfort or privilege
.  It grew into "a legal right or privilege to
use anything other than one's own. The permission is granted to easement holder
to use the land of another person through the award of a non-possessory property
interest. It refers to a man's right to have a licence &it's a personal right
granted to the individual to do anything on the grantor's immovable property
that doesn't add value to the property itself.
This is a permissive right that
is solely the grantor's personal privilege. This imposes no obligations or
responsibilities on the individuals making the grant & it is thus revocable
except under the conditions set forth in the Act. When a licence is given, it
has no other consequence than allowing the licensee freedom to go to land that
would otherwise be illegal.
As per s. 52 of the Indian Easement Act, 1882, a license is defined as something
that a person offers to another person or group of people the right to or
continue to do something in or on the property of the grantor. The Indian
Easements Act of 1882 incorporated this principle. The Indian Easements Act,
1882, deals with licensing & their administration from S.52 to 64. Unlike a
lease, the license can be simply referred to as ' right to use the subject
land'. The tenant receives possession of the property to the tenant & it's
possession of the premises / land is given on the basis of a lease.
The 'licensee' has only right to use it according to the conditions of the
licence agreement & for purpose which is the agreed upon. The legal premise is
that the courts try to determine whether the parties intended to form a lease or
a licence by inferring their intentions. A lease & licencing agreement should be
carefully structured to convey that the parties only intend to enter into a
licence arrangement, not a lease agreement. The licensee should never be given
absolute possession of the subject property; otherwise agreement may be regarded
as a leasing arrangement.
Licensing means three things:
- License Under English Law:
A licence, according to English law, is only a personal privilege or right
that allows the licensee to do anything on the licensor's land that would
otherwise be unlawful. It is an excuse for doing something that would
otherwise be illegal due to the licensor's approval. It is merely permission to
do something that allows the licensee to accomplish something lawfully that he
could not do otherwise.
A dispensation or licence does not create an interest in anything, nor does
it change or transfer property in anything; it just makes an action legal that
would have been unlawful without it.
A licence is simply permission to do something on immovable property, such as
occupation it, enjoy its fruits, or use it for another purpose.
A licence is an official permit or permission to carry on a business or perform
an act that would be illegal without it, and the terms licence and permit are
sometimes used interchangeably. Permission and licence are interchangeable
terms. Permission or licence is provided by the granter to the grantee for the
use of an immovable property for a specific purpose that is necessary for the
grantee to retain dominant right of possession over the immovable property with
- License Under Indian Law:
According to s. 52, if any person gives / proceeds to do in or on grantor's '
immovable property' something that could be unlawful or rights are not easement
or interest in the land, to another person or a no.of certain persons , in the
absence of such a right it is called license.
- Authorization to do so
- Certificate or document incorporating the relevant authorization,
- License fee which is the price granted for the privilege.
In case Associated Hotels of India ltd. vs. R.N. Kapoor
 it was held by hon'ble court that , licence is a document that allows a licensee to use a
property under specified terms & circumstances while the property remains in the
ownership of the true owner. As a result, the legal possession of the property
remains with the owner,& licensee is only granted a licence to use the owner's
property for a certain purpose. In case of absence of such a licence, however,
the licensee's actions on the property would be illegal.
Errington vs Errington
 The hon'ble Court held that the son and
daughter-in-law had no express responsibility to pay the installments and that
the terms could not be inferred from their actions. The father's commitment was
described as a unilateral contract
; the performative act that pays the
mortgage & it will be revocable only if the couple fails to pay.
has begun, the offer can't be cancelled by offeror. If the mortgage was paid,
the father's implicit goal was to keep the house in his family's hands. The pair
was on a lease, not a tenancy, but a legal or at least equal right to dwell that
would evolve into a good equal title after the mortgage was being paid.
Distinction Between Lease And Licence:
They both sound like the same but lease &license both of them are two
separate legal concepts & offers different rights and duties. There are certain
criterias on the basis of which both can be differentiated:
According to Section 52 of the Indian Easement Act of 1882, a licence is
something that a person provides another person, or a number of people, the
right to do or continue to do something in or on the grantor's immovable
A lease is defined in Section 105 as "a transfer of immovable property for a
specific time period for a consideration in which the transferee has accepted
the parameters surrounding the agreement."
George Chandi and Others v. Beena and Others
A permission to hold or
possess the property without a right of ownership as a matter of right would be
considered just a licence. If exclusive possession was given up as a matter of
right at the time of the relationship's formation and the answer is affirmative,
the relationship is a lease.
Transfer of exclusive possession of the premises
under an arrangement is not determinative of the existence of a lease, but it is
a strong positive factor constituting the existence of a lease arrangement, and
it can be safely acted upon when other factors support the existence of a lease arrangement.
The most important question to evaluate is what the parties intended
when they entered into the relationship, if exclusive possession was given to
the other party, and whether the terms and conditions provided would be
sufficient to create a lease rather than a licence.
To find out whether a document creates a licence or a lease:
- the substance of the document must take precedence over its form;
- the real test is whether the parties intended to create a lease or a licence;
- if the document creates an interest in the property, it is a lease; but
if it only permits another to make use of the property, the legal possession
remains with the owner, it is a licence; and
- if a party obtains exclusive possession of the property under the
document, he is prima facie, a tenant.However, situations may arise that negate the intention
to create a lease.
Essentials Of Lease: 
Transfer of Interest:
- Parties must be competent to enter into a contract:
The parties to a lease agreement must be capable of entering into a contract.Lesser should be entitled
to a property and have complete control over it.
- Right of possession:
In a lease, only the possession of the property is transferred and
ownership rights are not transferred.
- Rent or premium:
Rent or premium can be used as a kind of consideration for a lease.
The lessee must accept the lease agreement, as well as the time duration
and terms and conditions imposed on the transfer, in order to obtain an
interest in the property following the lease.
- Time Period:
A lease is always for a specific amount of time, which is indicated in
the lease agreement. It can be relaxed at the lessor's discretion.
In a lease, the lessor transfers the right of possession in
exchange for the lessee paying rent or a premium as a lease consideration.
A lease is a contract that creates a right to use immovable property for a set
period of time and for a particular amount of money under certain conditions.
The lessee receives the right to possess and enjoy the property when the lease
is transferred. After establishing such an interest, a tenant or subtenant has
the right to remain in possession of the property until the lease is properly
ended and eviction is carried out in accordance with the law.
Only after the
transfer of an interest in immovable property pursuant to a contract and the
creation of a right in rem can a landlord and tenant relationship be
established. Furthermore, if the lessee himself gives the lessor the option to
continue the leasehold, it is a personal covenant that does not generate an
interest in the land."
Parties to lease: 
There must be two parties involved in a valid lease: the lesser (the transferor)
and the lessee ( transferee ). A lease is an agreement between the owner of a
property and the person who offers to lease it for a set period of time in
exchange for a payment of consideration. The person transferring the right of
enjoyment of the property is known as the lesser, and the person to whom the
right is transferred is known as the lessee.
Subject matter of lease:
This provision specifies that the subject matter of the lease must be immovable
property. Immovable property is defined in Section 3 of the Transfer of Property
Act, and it includes not just land, buildings, and minerals, but also the
benefits that derive from land.
Duration of a lease:
The lease deed must always specify the duration the lessee will have the right
A licence is a right to do or continue to do something in or upon the grantor's
immovable property that would be illegal if the grantor did not have such a
right, and such a right does not imply an easement or an interest in the
The major difference between a lease and licence is that a, lease is a transfer
of a right in a specific immovable property, but a licence is merely a
permission and a licencee is not entitled to notice to vacate before evidence.
kinds of License:
- Bare licence, which is merely a question of personal privilege,
- licence accompanied by a grant or interest in the land.
A bare licence is a
personal permission or consent to enter, cross over, or be present on another
person's land. A bare licence is a licence that is given freely and is not
accompanied by the giving of an interest in the land, such as the licence that
one must give to one's guests. And This kind of license can be revoked any
A bare licence is a defence to what would otherwise amount to be tort of
trespassing. When a licensee goes outside the scope of the licence, he
becomes a trespasser. If a person is permitted to enter the land for one
purpose but enters for another, or begins to pursue a different goal than
that for which he is authorised while on the land, he is considered a
trespasser, where it is known or understood that the occupant would not have
It is a case of bare licence if a person is allowed to undertake an act on the
land without interfering with the nature of the property or taking any profits
Bare licences are usually not assignable (transferable) and can be revoked by
the property owner at any time. When the licensee, acting on the licence,
completes a permanent work and incurs expense, the bare licence becomes
Licence which is coupled with a grant or interest in land:
A licence is combined with a grant or interest in land, When a permission to
enter another's land for the purpose of removing something from that land (such
A licence with an interest is arises, .The granting of an interest (such as a
profit a prendre) is combined with permission to enter the land in order to
realise or exploit that interest.
When a person acquires the right to take possession of property located on
someone else's land, a licence with an interest is created, such as when a
lender obtains the right to repossess an automobile located on private property
after a borrower defaults on a loan.
When standing timber is sold on the condition that the purchaser sever the
timber, the sale of the timber on these terms implies the grant to the purchaser
of a permission to access the land in order to collect the timber. Unless
otherwise agreed, such a licence is irrevocable for the duration of the interest
to which it is annexed and can be assigned.
Granting Of Licence:
The provisions for granting licences are the same as for easements. When
entering into a Lease and Licence arrangement, are two preliminary questions
arise: who can grand and how a licence is granted.
The first issue is addressed by Section 53 of the Indian Easements Act of 1882,
which provides that anyone may give a licence on the terms and to the extent
that he may transfer his interests in the land affected by the licence.To put it
another way, a licence cannot be granted or received if the licensor does not
have a sufficient lawful interest in the property.
The second question is addressed in S. 54 of the Indian Easements Act, 1882, &
it states that a grant of a licence may be express or implicit from the
grantor's conduct, and that an agreement that purports to create an easement but
is ineffectual for that purpose may be construed as a licence.This is an
important definition. Property owners should be aware that their actions may
constitute a licence, even if there is no formal licence agreement.
- Power To Grant License:
The power to grant a licence is outlined in Section 53. As per S.53 , Anyone
may give a licence in the conditions and to the extent that he may transfer his
interests in the property affected by the licence, according to S.53.
The power to give a licence is mutually exclusive with the ability to transfer.
Man can give a licence to the extent that he can transfer his interest in the
affected property under certain conditions. A valid licence is given by a
mortgagee or co-tenant who is lawfully in sole possession and enjoyment of the
property to do something that he could do himself. A licence can be granted
by anyone who has the power to transfer property, even if he is not the owner.
Such a person can also revoke the licence.
A grant of the right is granted by the grantor under Section 52. No licence may
be created without a grant in the broadest sense. Only as long as the
licensor retains a right, title, and interest in the premises can a licence
agreement continue to survive to be effective. The agreement for licence comes
to an end when the right to the title expires. If the licensor is a tenant, his
licence agreement expires when the tenancy ends, and the licensee ceases to
- Form of Licence - Express or Implied:
As per section 54. A licence may be granted expressly or impliedly as a result
of the grantor's actions, and an agreement that purports to provide an easement
but is ineffectual for that purpose may function to generate a licence.
When a person is granted the right to use the premises without becoming entitled
to exclusive possession of them, or when the circumstances and conduct of the
parties show that all that was intended was to grant the grantee a personal
privilege with no legal interest, a licence is notionally created.When a licence
is combined with a compulsorily registrable grant of immovable property or an
interest in immovable property, it must be in written or registered.
- Express License:
An express licence is one that in direct terms allows the conduct of a certain
act, such as a public authority-issued licence to keep a tavern. Express
licences apply to more specific scenarios in which permission has been given to
a specific person. An example is when the owner invites guests to his home for
dinner or to stay in one of his rooms. Any re-entry after that period without
further permission would be considered trespass.
- Implied License:
A licence may be implied by the licensor's actions, such as allowing something
to be done on his land by someone who believes the land is his own.A plea of
implied licence, which can be founded on the right of equity to intervene, must
be based on either a contract or the presence of some reality that the legal
owner cannot deny. A shopkeeper's invite to customers to enter his premises
to conduct business is an example of implied licence of everyday life.
Revocation Of Licence:
Revocation generally means as 'termination of the Licence.' A licence is
revocable at the discretion of the licensor or generator, however it cannot be
withdrawn under the following two circumstances. A grantor can always revoke a
bare licence. A licence, unlike a contract, generates no mutual obligation or
rights between parties, and it can be cancelled under this provision unless it
falls under one of the exceptions listed. The power of the section to revoke a
bare licence granted to the licensor is unaffected by the fact that the licence
was granted for a valuable consideration.
When a licence is just a bare licence, the fact that it was acquired for a
specified period of time has no bearing on the licensor's right to revoke it at
any moment. The licensor has the power to withdraw a licence at any time, and
this power is not conditional on the licensor providing reasonable notice or
sufficient time to the licensee.
The right of a licensee to receive reasonable
notice before revocation and the right of the licensor to revoke a licence are
not intertwined in the sense that the licensor cannot use his right without
first issuing such notice.
62. License when deemed revoked 
A license is deemed to be revoked:
- where the grantor loses all interest in the property affected by the
licence due to a circumstance that occurred before the licence was granted
- when the licensee releases it to the grantor or his representative,
either expressly or impliedly;
- when it has been given for a limited period of time or acquired on the
condition that it would become void if a particular act is performed or not
, and the period has expired or the conditions have been met;
- where the property affected by the licence is destroyed or permanently
transformed by superior force, rendering the licensee unable to exercise his
- where the Licensee acquires complete ownership of the property affected
by the licence;
- where the licence is provided for a specific purpose that is accomplished,
abandoned, or rendered impracticable;
- where the license is issued as holding a specific office, occupation, or
character, and that office, occupation, or character ceases to exist;
- if the licence is not used as such for a continuous period of twenty years
and the cessation is not in accordance with a contract between the grantor and
- in the case of an accessory licence, when the interest or right to which it
is attached expires.
The Court held in Associated Hotels of India Ltd. v. R.N. Kapoor
licence is a document that allows a licensee to use a property under specified
terms and conditions while the property remains in the ownership of the true
owner. As a result, the legal possession of the property remains with the owner,
and the licensee is only granted a licence to use the owner's property for a
certain purpose. In the lack of such a licence, however, the licensee's actions
on the property would be illegal.
Mrs. M.N. Clubwala v. Fida Hussain Saheb
Whether an agreement establishes a
landlord-tenant relationship or solely a licensor-licensee one, the parties'
intention is the most important factor to consider. This intention must be
determined by examining all of the agreement's relevant sections.
Delta International Limited vs. Shyam Sundar Ganeriwalla & Another
essential test for determining whether a document provides a lease or a licence
is to determine the parties' intention; keep in mind that in circumstances when
exclusive possession is provided, the boundary between lease and licence is very
Rajbir Kaur and Anr. vs. S. Chokesiri and Co.
The operative intention of the
parties determines whether a transaction is a lease or a licence, and there is
no single, clear litmus test to differentiate one from the other. The giving of
simply the right to use the premises without the right to exclusive possession
of the premises operates as a licence. 'Exclusive possession 'is itself not
decisive in favour of a lease and against a mere licence,Even the grant of
exclusive possession may turn out to be a licence rather than a lease if the
grantor does not have the power to grant the lease.
The conclusion that the term licence implies nothing does not preclude the
existence of a licence law. There is licence law, but it must be explained in
terms of specific situations. The licensee's privileges can be terminated at any
time if the licensor gives no reason to expect otherwise. When a licensor
manifests a intention for the privilege to last longer, the repercussions are
determined by other circumstances. The licence may create a real easement if it
does not violate any legal policy. If it violates the rule requiring a sealed
instrument, it will very certainly result in an easement, but the licensee may
only seek relief through equitable means.
If enforcing the licence will impose relatively insignificant restrictions on
the land, neither the parties' expectations, formalities, or expenditures will
give the interest the characteristics of an easement. Laymen, who rarely consider
it in terms of legal relationships, frequently use licence to signify a
transaction. It's frequently compared to the terms lease and easement, which
both refer to certain types of transactions.
The researcher has adopted a purely doctrinal method of research.
- Sources of Data:
The following secondary sources of data have been used in the project:
Aims And Objectives:
- What is the meaning of licence and how a licence is granted in India?
- What are it's types and basic components?
- When the license will be deemed to be revoked?
The researcher aims to study about the Revocation of Licence.
- The researcher on close examination believes that revocation of licence can be done on certain criteria mentioned.
- The researcher also believes that license does not confer a interest
or property in the thing.
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