The question of whether a specific agreement on the occupancy of a property is a lease agreement or a withdrawal and licensing agreement has been the subject of numerous court decisions and it has been found that different contractual clauses are read as a whole to determine whether it grants vacation and licensing rights or whether it creates a lease agreement. Simply assigning the Title as Leave and License to your contract does not lead to it leaving and licensing agreement, unless the clauses in the agreement also respect the terms of withdrawal and license and do not grant any rental rights. 3.2 The lessor is responsible for registering the leave and licensing contract in accordance with the registration law. In the event of a conviction, any owner who violates these provisions is liable to a prison sentence of up to 3 months and/or a fine of up to 5,000 euros. In the vacation and licensing agreement, the owner of the property is designated as the licensee, while the person authorized to use the property is designated as a licensee and the amount the licensee pays to the licensee for the use and use of its property is designated as a royalty. The licence is merely a concession granted by the licensee or licensees to certain persons designated as takers to operate and provide the acquired property, and this concession does not constitute a transfer of interest from the licensee to the licensee. The licensee remains in the simple occupation of the property, while the legal property remains with the licensee, which is an important difference between rent and license. Due to the notification requiring the closure of all establishments until 14.04.2020 or at another date that may be communicated at a later date, licensees who operate their establishments from licensed premises lose their income, while the obligation to pay royalties still weighs on them. The doctrine of force majeure is reflected in Section 56 of the Indian Contract Act, 1872. Justice precedents have characterized Section 56 as a doctrine of frustration. According to Section 56, an agreement on an impossible act is in itself null and public. It therefore provides that an act contract that becomes impossible or illegal after the conclusion of a contract because of an event that the promise giver could not prevent becomes invalid if the act becomes impossible or illegal.
The owners and tenants of Maharashtra have always been entangled in the horns of a dilemma when it comes to licensing and leave agreement. The Agreement is required to be registered in accordance with Section 55 (1) of the Maharashtra Rent Control Act 1999. In paragraph 55, paragraph 2, this responsibility is clearly delegated to the lessor. In addition, Section 55 provides, in the absence of a registered written agreement, for the dispute between the tenant and the conditions under which the premises were either placed on leave and licensed or even leased. According to Section 55 (1), it is clear that only the lease or leave agreement and a licence executed between the lessor and the tenant or licensee must be registered. The Rent Control Act strongly favours tenants and limits the landlord`s power to regain land.