40. License

rule against bias

Meaning and Concept

A License is a personal right granted by one person to another to do or continue to do something on the immovable property of the grantor, which would otherwise be unlawful, without creating any interest in the property. The concept of license is defined under Section 52 of the Indian Easements Act, 1882. Unlike a lease, a license does not transfer possession or ownership; it merely permits lawful use. The licensee enjoys the right at the pleasure of the licensor, subject to conditions agreed upon. This distinction is crucial in property law, as license does not confer any proprietary rights and is generally revocable.

Statutory Provision and Legal Framework

The legal framework governing license is primarily contained in Sections 52 to 64 of the Indian Easements Act, 1882. Section 52 defines license, while Sections 60 to 62 deal with revocation and termination. A license may be express or implied and does not require registration. Courts have consistently held that the intention of parties determines whether an arrangement is a license or a lease. In Associated Hotels of India Ltd. v. R.N. Kapoor, the Supreme Court clarified that exclusive possession alone does not determine a lease; the nature of the right granted is decisive.

Essential Characteristics and Importance

The essential features of a license include absence of transfer of interest, personal right, revocability, and lawful permission. A license is non-transferable and comes to an end with the death of either party unless otherwise provided. Its importance lies in facilitating temporary use of property for specific purposes such as parking, advertising, or running kiosks. In examinations, license is frequently compared with lease to test conceptual clarity. Understanding license helps students differentiate between proprietary rights and personal permissions under property law.

Real-Time Example

A common real-time example of license is allowing a vendor to set up a temporary stall outside a shop or permitting a friend to park a vehicle on private land. In such cases, the owner does not transfer possession or interest in the property. Another example is allowing a telecom company to place a mobile tower on a building terrace with permission that can be revoked. These arrangements clearly show that the right granted is permissive and not proprietary, making them licenses under Section 52 of the Indian Easements Act, 1882.

Mnemonic to Remember

A simple mnemonic to remember License is “PERMIT”.
P – Personal right
E – Easement Act governed
R – Revocable
M – No proprietary interest
I – Implied or express
T – Temporary use

This mnemonic helps students recall the essential elements quickly during exams.

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