What is the legal difference between a licence and a lease for my property in Itanagar?

Detailed Legal Analysis

A lease is a transfer of a right to enjoy a property for a certain time in exchange for rent, while a licence is a permission to use the property without transferring any interest. In Itanagar, the distinction is crucial because a lessee has statutory protection under the rent control law while a licensee does not.

The Gauhati High Court has applied the test of exclusive possession to determine whether an arrangement is a lease or a licence. Arunachal Pradesh Rent Control Act 2017 may prescribe the formalities for creation of a lease such as registration and stamping.

If the agreement grants exclusive possession and right to sub-let, it is likely a lease. A licence agreement is typically for a short duration and does not create a tenancy.

The Supreme Court in various judgments has emphasised the intention of the parties as reflected in the agreement. You should draft the agreement carefully to reflect the intended nature of the arrangement.