Termination of the Leave and License Agreement in the India

In the dynamic landscape of the Indian real estate market, understanding the process and implications of terminating a Leave and License Agreement is crucial. A Leave and License Agreement, a common arrangement in this industry, grants the licensee the right to occupy a property owned by the licensor for a predetermined period. However, there are situations when either party may need to terminate this agreement. In this blog post, we will delve into the intricacies of terminating a Leave and License Agreement in the Indian real estate market.

Key Considerations for Terminating a Leave and License Agreement:

  1. Notice Period: One of the most critical aspects of terminating a Leave and License Agreement is the notice period. As per the Indian Easements Act, a minimum notice period of 15 days is typically required for either party to terminate the agreement. However, the terms of the agreement may specify a longer notice period, and it’s vital to adhere to these stipulations.
  2. Reasons for Termination: The agreement should clearly outline the circumstances under which either party can terminate the contract. Common reasons could include breach of terms, non-payment of rent, or violation of property rules. Ensuring that the termination aligns with the predefined reasons is essential to avoid legal complications.
  3. Notice Format: The notice for termination must be provided in writing. It’s advisable to send the notice through registered post or any other form that provides proof of delivery. This prevents disputes regarding the receipt of the notice and serves as evidence if legal action arises.
  4. Tenant’s Responsibilities: If you are the licensee (tenant) seeking to terminate the agreement, ensure that the property is returned in good condition, as specified in the agreement. This includes repairs, cleaning, and restoring the property to its original state.
  5. Security Deposit: The agreement should outline the process for refunding the security deposit. This includes deductions for any damages caused during the tenancy. The licensor should return the deposit within the specified time frame after the termination.
  6. Legal Recourse: In case of a dispute arising from the termination, both parties can seek legal recourse. The agreement may include a clause mentioning the jurisdiction for any legal proceedings. It’s recommended to resolve disputes through mediation or arbitration whenever possible.


Terminating a Leave and License Agreement in the Indian real estate market involves adhering to legal requirements and honoring the terms of the agreement. By considering factors such as notice periods, reasons for termination, and proper communication, both parties can ensure a smooth and hassle-free process. It’s essential to understand that each agreement may have unique clauses, so reading and comprehending the terms beforehand is vital. This proactive approach can prevent potential conflicts and ensure a positive relationship between the licensee and licensor even after the agreement comes to an end.

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