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Wednesday, 7 January 2015

Why Registration of Leave and Licence Agreement is important?

Any agreement for leave and licence has to be in
writing and it is mandatory to register the agreement.
The responsibility of getting such agreement registered
shall be on the licensor .
Any licensor who contravenes these provisions ,is liable to
be  punished with imprisonment up to three months 
or with fine up to Rs. five thousand or with both.
The section relating to this provision in The Maharashtra
Rent Control Act _ 1999 reads as follows :

  Sec.55 ( 1) Notwithstanding anything contained in this Act
 or any other law for the time being in force , any agreement
 for leave and licence or letting of any premises entered
 into between the landlord and the tenant or the licensee,as
 the case may be ,after the commencement this Act shall be in
 writing and shall be registered under the Registration Act
 1908.

Also see: Government appointed Competent Authority 
for conflict resolution in Leave and License

  Sec.55(2) The responsibility of getting such agreement
 registered shall be on the landlord and in the absence of
 the written registered agreement the contention of the
 tenant  about the terms and conditions  subject to which 
 a premises have been given to him by the landlord on leave
 and licence or have been let to him,shall prevail,unless
 proved otherwise.

 Sec.55(3)Any landlord who contravenes the provisions of this
 section shall,on conviction be punished with imprisonment
 which may extend to three months or with fine not exceeding
 Rs.5000/- or with both.

Considering these provisions it is advisable to register leave and licence agreement .

Also see: Online registration of leave and license agreement

The summary of the provisions

(1)  Registration of leave and licence agreement is mandatory

(2)   The unregistered document has no legal value, and as such,in case
of a dispute going to the court of law it will not be taken as evidence. 

(3) Notarisation of the documents which are mandatory to be registered
has also no legal value and therefore they are not admissible in evidence.

(4)the licensor may have to face a criminal case if he does not register
the leave licence agreement,



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