Licence

Introduction

Licence is a concept under the Indian Easements Act, 1882 explained in Sections 52 to 64.
It gives a person permission to do something on another’s property which would otherwise be unlawful.
Unlike easements or leases, it does not create any interest (ownership right) in the property.

Meaning / Definition

As per Section 52 of the Indian Easements Act, 1882:
A licence is a right granted by one person to another to do something on immovable property, which would otherwise be unlawful, and such right does not create any interest in the property.

In simple terms, a licence:

• Makes an act lawful
• Does not transfer ownership or possession
• Is a personal permission

Modes or Types

Nature of Licence

• It is a personal right (right given to a specific person)
• It does not create ownership or possession
• It is generally revocable (can be cancelled)
• It cannot usually be transferred

Licence Coupled with Grant

• When licence includes:
  • Right to take movable property, or
  • Interest in property
• It becomes partly a grant (transfer of rights)
• Such licence is usually irrevocable

Types of Licence

• Gratuitous Licence: Given without payment
• Contractual Licence: Given for consideration (payment or benefit)
• Bare Licence: Simple permission without any interest

Transferability of Licence (Section 56)

• General rule:
  • Licence cannot be transferred
• Exceptions:
  • Licence for public entertainment (cinema, theatre, etc.)
  • Licence coupled with grant (like profits a prendre – right to take produce)
  • Licence expressly made transferable
  • Licence which cannot be exercised personally

Rights of Licensee

• Licensee acts in his own capacity (not as agent)
• Cannot sue third parties in his own name
• Cannot deny the title (ownership) of the licensor

Revocation of Licence (Section 60)

Licence is generally revocable by the grantor, except when:

• It is coupled with transfer of property and such transfer is in force
• Licensee has:
  • Done permanent work
  • Spent money based on the licence

When Licence is Deemed Revoked

Licence ends when:

• Grantor loses interest in property
• Licensee releases the licence
• Time period expires
• Condition is fulfilled
• Property is destroyed or altered
• Ownership becomes unified
• Purpose is completed or abandoned
• Non-use for 20 years
• Related rights end

Irrevocable Licence

• Licence becomes irrevocable when:
  • Coupled with grant
  • Permanent work is done with expenses
• Such licence may be heritable (can pass to heirs)
• But usually not transferable unless linked to property interest

Legal Remedy

• Licensor should give reasonable notice before revocation
• If licence is contractual:
  • Licensee can claim damages (money compensation) for breach
• Licensee cannot sue third parties directly

Important Case Law

• Biswanath Panda v. Gadadhar Panda (1971)
  • Court held that:
    • Licence does not create any interest in property
    • Mere licence is revocable
    • Licence coupled with grant is irrevocable

Distinction / Comparison

Licence vs Easement

Licence vs Lease

Practical Example

A allows B to stay in a room temporarily without rent.

• This is a licence because B only has permission.
• If A asks B to leave, B must vacate.

But if A rents the room to B for a fixed monthly rent,

• It becomes a lease, not a licence.

Summary

• Licence is a personal permission to use property without creating ownership
• It makes an otherwise unlawful act lawful
• It does not give possession or interest in property
• It is generally revocable, except in special cases
• Licence cannot usually be transferred or inherited
• Licence coupled with grant becomes irrevocable
• Licensee cannot sue third parties directly
• Licence is different from easement and lease in nature and legal effect