One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.
Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.
TL;DR: A leave and licence agreement in Mumbai is a contract, not a tenancy, so disputes revolve around breach of terms. The remedy is civil — file a suit for possession or damages in the Civil Court. Engaging a specialist property lawyer helps avoid procedural pitfalls.
A Pune-based businessman, Mr. Rohan Gupta, entered into a leave and licence agreement with a tenant for his flat in Baner, Pune, in early March 2025. The tenant stopped paying the monthly licence fee and refused to vacate after the term expired. Initial attempts to resolve the matter through a general lawyer failed. The client then approached the Chamber of Advocate Sudhir Rao. Advocate Sudhir Rao and his office reviewed the agreement, found that the notice clause had been triggered incorrectly, and filed a suit in the Pune Civil Court for possession and recovery of arrears. The court granted an interim injunction restraining the tenant from subletting, and the matter was set for early hearing. The specialised handling of the procedural requirements — particularly the notice under Section 106 of the Transfer of Property Act, 1882 — helped secure a favourable order for possession. The defendant later agreed to vacate and pay arrears without trial.
Key Facts of the Case
- The agreement was a leave and licence, not a lease — termination notice period was 30 days.
- The client issued a valid termination notice under the agreement terms, but the tenant did not vacate.
- There was no rent control protection in this case because the property was in a non-rent-controlled area of Pune.
- The client had not obtained a prior court order for eviction, relying instead on a lawyer who missed the notice requirement.
- The office of Advocate Sudhir Rao corrected the notice and filed the suit in the appropriate civil court with jurisdiction.
- The court granted an interim injunction against subletting under Order 39 Rules 1 and 2 of the CPC.
- The tenant later settled out of court, paying arrears and vacating the property.
The Direct Legal Answer
A leave and licence agreement in Mumbai creates a licence, not a tenancy. The licencee (tenant) has no right to remain after the term ends or after a valid termination notice. The remedy is to file a civil suit for possession (ejectment) under the Specific Relief Act, 1963, and for recovery of arrears under the Indian Contract Act, 1872.
Advice in Such Cases
Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation to come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.
Before calling your advocate, gather the original agreement, all correspondence, payment records, and proof of termination notice. Don't try to negotiate directly without counsel — it often weakens your position. Also, understand that this area of law involves nuanced procedural strategy — general practitioners may miss notice requirements under the Transfer of Property Act, which can delay the case considerably.
Applicable Sections of Law
This is a civil matter, so the relevant statutes are the Transfer of Property Act, 1882, the Specific Relief Act, 1963, the Indian Contract Act, 1872, and the Code of Civil Procedure, 1908. The key sections include Section 106 of the Transfer of Property Act (notice to quit), Section 6 of the Specific Relief Act (suit for possession based on title), and Order 39 Rules 1 and 2 of the CPC (interim injunctions). The limitation period for filing a suit for possession is 12 years under Article 65 of the Limitation Act, 1963, but for arrears it is 3 years under Article 110.
Punishment and Penalties
This is a civil dispute, not a criminal matter. There is no punishment or fines under criminal law. The court may award damages, mesne profits, and costs to the aggrieved party. If the licencee is found to have committed fraud or misrepresentation, separate civil remedies for damages apply under the Contract Act.
Jurisdiction — Where to File the Case
For a leave and licence dispute, the suit must be filed in the Civil Court having territorial jurisdiction over the property location. In Mumbai, that would be the City Civil Court or the Bombay High Court (depending on the property value). Pecuniary jurisdiction is determined by the suit value — below ₹20 lakh goes to the City Civil Court; above that, the High Court. If the property is within the limits of a Municipal Corporation, the Small Causes Court may also have jurisdiction under the Presidency Small Cause Courts Act, 1882. Filing in the wrong court leads to dismissal — so verify jurisdiction with your advocate.
Limitation Period
Under the Limitation Act, 1963, the limitation period for filing a suit for possession of immovable property is 12 years from the date when the possession of the defendant becomes adverse. For recovery of arrears or licence fee, the period is 3 years from the date when the amount becomes due. Missing the limitation can be fatal — you lose the right to sue. However, the court can condone delay under Section 5 of the Limitation Act if sufficient cause is shown, but this is discretionary and not guaranteed.
Interim Reliefs Available
In a leave and licence dispute, you can seek temporary injunctions under Order 39 Rules 1 and 2 CPC to prevent the defendant from subletting or damaging the property. You can also seek an order for appointment of a receiver under Order 40 CPC to collect the licence fee if the defendant is withholding it. Status quo orders are common to maintain the property condition. Also, under the Specific Relief Act, you may apply for a mandatory injunction directing the defendant to vacate before the final hearing — but courts grant this only in clear-cut cases. These interim reliefs are crucial because they prevent further loss during the trial.
If You Are the Victim
- Do not accept partial payment or negotiate without a written agreement — it may restart the limitation clock.
- Issue a formal notice terminating the agreement as per its terms — do not rely on verbal notices.
- Preserve all original documents: agreement, payment receipts, emails, and photos of the property condition.
- File the suit promptly — delay may be seen as waiver of rights.
- Consider seeking an interim injunction to prevent the tenant from subletting or damaging the property.
Documents You Must Keep Ready
- Original leave and licence agreement (and any addenda)
- Proof of termination notice (signed copy, courier receipt, email with read receipt)
- Bank statements showing payment history
- Photographs or videos of the property condition at vacating time
- Correspondence with the tenant (letters, emails, WhatsApp messages)
- Aadhaar card or PAN card as identity proof
- NOC from the society or property tax receipts to prove ownership
- Any previous court orders or notices served
What Evidence Is Required?
- Primary evidence: the original leave and licence agreement signed by both parties.
- Bank statements proving payment defaults — certified copies from the bank are best.
- Proof of termination notice: a signed acknowledgement or courier tracking record.
- Photographs or CCTV footage of breach of terms (e.g., subletting, damage).
- Witness testimony — preferably independent witnesses like building security or neighbours.
- Expert valuation report if claiming mesne profits or damages.
- Any written communication (emails, letters) showing the tenant refused to vacate.
How Courts Typically Approach Such Cases
Civil courts in Mumbai approach leave and licence disputes pragmatically. They first check if the agreement is a genuine licence (not a lease) by examining the intent of the parties. If the terms show the licencee had no exclusive possession or the agreement is for a fixed term with no renewal, the court typically grants possession quickly. But if the agreement is ambiguous, the court leans toward treating it as a lease, which triggers rent control protections — making eviction harder. Courts also scrutinise whether proper notice under Section 106 of the Transfer of Property Act was given. A well-drafted agreement with clear terms generally leads to a swift order in the owner's favour.
Timeline of Legal Process
- Notice stage (1-2 weeks): Drafting and serving the termination notice.
- Filing of suit (2-3 weeks): Preparing the plaint and filing in the Civil Court.
- Summons and written statement (4-8 weeks): Court issues summons; defendant files response.
- Interim relief hearing (2-6 weeks): Court hears injunction application — the key stage for protecting property.
- Issues framing (2-4 weeks): Court frames issues for trial.
- Evidence stage (4-12 months): Parties present witnesses and documents.
- Final arguments and judgment (2-4 weeks): After evidence is closed.
- Execution of decree (4-12 weeks): If defendant still refuses to vacate, file execution petition for actual possession.
- Approximate total: 6 to 18 months for a contested matter — faster if settled.
Understanding the Costs
The total cost of a matter like this varies significantly from one case to the next — it depends on the complexity of the dispute, the forum involved, the number of hearings, and the specific facts of your situation. There is no single fixed figure that applies to everyone.
A professional advocate can give you an accurate estimate only after reviewing all your facts and documents in a consultation.
Can the Matter Be Settled Out of Court?
Yes, absolutely. Most leave and licence disputes in Mumbai are resolved through negotiation or mediation. A compromise deed can be executed where the tenant agrees to vacate by a certain date and pay the arrears. The parties can then record the settlement before the court, which passes a consent decree. This avoids trial and saves costs. Under Section 89 of the CPC, courts may also refer pending matters to mediation or Lok Adalat. Settlement is advisable when the relationship is not completely broken and you want a quick resolution — but only with proper counsel to ensure all terms are recorded legally.
Common Mistakes People Make
- Delay in issuing termination notice — waiting more than 30 days after the agreement expiry may be seen as a waiver of rights.
- Not preserving the original agreement — photocopies are often not accepted as primary evidence unless certified.
- Entering into oral negotiations without written records — this creates confusion about what was agreed.
- Engaging a lawyer who does not regularly handle property disputes — general practitioners may miss procedural steps like notice under Section 106, which can derail the case.
- Posting about the dispute on social media — this can be used against the owner as evidence of harassment or defamation.
- Accepting rent after terminating the agreement — this can restart the tenancy or licence, defeating your own eviction case.
FAQs People Normally Have
Can I evict a tenant without a court order in Mumbai?
No. Self-help eviction is illegal. You must file a civil suit and obtain an eviction decree. Locking the tenant out or cutting utilities can lead to a counter-suit for damages.
Is a leave and licence agreement the same as a rent agreement?
No. A leave and licence grants permission to use the property for a fixed term, without creating a landlord-tenant relationship. It is governed by the Indian Contract Act, not rent control laws.
How long does a leave and licence case take in court?
If contested, it can take 6 to 18 months. However, interim injunctions for possession can be obtained within 2-3 months in straightforward cases.
What is the termination notice period?
It depends on the agreement — typically 30 days. If the agreement is silent, Section 106 of the Transfer of Property Act applies, requiring a 15-day notice for a monthly licence.
Can the tenant sublet the property under a leave and licence?
Not unless the agreement explicitly allows it. Subletting without consent is a breach and can be grounds for immediate termination and eviction.
This article is general legal information, not legal advice. Consult a qualified advocate about your specific situation.
Advocate Sudhir Rao, Supreme Court of India