Maharashtra Rent Control Act and Leave and License

1. What is Leave and License
2. A legal arrangement where the owner (licensor) allows another person (licensee) to use premises for a specific period
   b. Unlike tenancy or lease, it does not create ownership or heritable rights in the property
   c. Commonly used for residential and commercial purposes in Maharashtra, especially Mumbai and Pune
   d. Governed by Section 24 of Maharashtra Rent Control Act, 1999 and the Indian Easements Act, 1882
3. Legal Basis under Maharashtra Rent Control Act, 1999
4. Section 24 provides that licensees must vacate premises after expiry of license period
   b. Disputes between licensor and licensee are decided by Competent Authority under the Act
   c. Protects licensor’s ownership rights by preventing licensee from claiming tenancy rights
   d. Ensures speedy eviction of defaulting licensees through summary procedure
5. Who Can Enter into Leave and License Agreement
6. Residential property owners granting temporary occupation
   b. Commercial property owners allowing use of premises for business purposes
   c. Individuals, companies, and firms requiring premises for fixed-term use without tenancy complications
7. Process of Executing Leave and License Agreement
8. Draft agreement clearly stating duration, rent, and obligations of both parties
   b. Payment of security deposit and monthly license fee by licensee
   c. Mandatory registration of leave and license agreement under Section 55 of Maharashtra Rent Control Act
   d. Registration at sub-registrar’s office with biometric verification of both parties
   e. Agreement recorded with local police station as additional safety measure in many cities
9. Disputes and Types of Suits under Leave and License
10. If licensee refuses to vacate after expiry, the licensor can file an Eviction Petition before the Competent Authority under Section 24 of the Act
    b. If licensee defaults on license fee, the licensor can file a Recovery Petition for arrears of rent and charges
    c. If either party violates terms of agreement, a Petition for Breach of Contract may be filed in civil court
    d. In redevelopment or property title issues, a Declaratory Petition may be filed to establish rights
    e. For unlawful interference or harassment, a Petition for Injunction can be filed to restrain wrongful acts
11. Which Court and What Petition Has to Be Filed
12. Matters of eviction under leave and license agreements are heard by the Competent Authority established under the Maharashtra Rent Control Act
    b. Appeals against orders of the Competent Authority lie before the Appellate Bench of the Small Causes Court in Mumbai or District Court elsewhere in Maharashtra
    c. Recovery of arrears, damages, or breach of contract claims can be filed before the Civil Court having pecuniary jurisdiction
    d. If urgent relief is required, parties may also approach court for interim injunctions or temporary restraining orders
13. Competent Authority in Mumbai City and Suburbs
14. In Mumbai City, the Competent Authority is the Deputy Collector appointed under Section 33 of the Maharashtra Rent Control Act
    b. In Mumbai Suburban District, the Sub-Divisional Officer/Deputy Collector functions as the Competent Authority
    c. Offices are located at the Collectorate Building in Fort for Mumbai City and at Bandra-Kurla Complex (BKC) or Chembur offices for Mumbai Suburbs
    d. Jurisdiction covers eviction proceedings of leave and license agreements, disputes regarding possession, and enforcement of eviction orders
    e. Powers include issuing eviction orders, directing police assistance for possession, imposing penalties for non-compliance, and deciding disputes summarily without full civil trial
15. Role of a Lawyer in Leave and License Agreements
16. Drafts precise agreement protecting licensor from future tenancy claims
    b. Ensures inclusion of clauses on rent, duration, renewal, and eviction rights
    c. Handles registration process with sub-registrar office
    d. Advises on remedies in case of default by licensee
    e. Represents licensor in eviction petitions, recovery suits, and appeals before Competent Authority or civil courts