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India Leave and Licence Agreement Template


(For shop, godown, shop-cum-godown)
This Agreement of Leave and Licence is entered into by and between:
‘LICENSOR’, which expression shall wherever the context so requires shall include each of its
successors, assigns on the one part, represented by Sri  S/0 Sri   aged
about    years residing at     , the Secretary and Sri  S/0
Sri aged about  years residing at  the Chairman (or
Administrator) of the Agricultural Produce Market Committee and a registered partnership firm
by name  represented by its proprietor: Managing Partner Sri
   son of Sri  aged about  years residing at.
 .  hereinafter called the ‘LICENSEE’ of the other part, witnesseth as
follows: '
Whereas the LICENSEE who is the market functionary and licence holder from the LICENSOR, has applied for allotment of a shop/shop-cum-godown/godown for doing business in the notified agricultural produce. , ■
Whereas, the licensor has established a market yard at intending to provide facilities
to market functionaries dealing in notified agricultural prqduce.
Whereas the licensor is the owner of the shop/shop-cum-godown/godown bearing
No situated in the market yard and more fully described in the schedule hereunder.
Whereas, the licensee herein was carrying on trade in notified agricultural produce
 (commodity:commodities) and has applied for allotment of a Godown/Shop-Cum-
Godown on Leave and Licence basis to carry on the trade in notified agricultural produce and the licensor has agreed to allot the Schedule property.
Whereas the licensoc has resolved to allot the Schedule property to the allottee on leave and license basis in its resolution its meeting held on ...-...-200_.
Whereas the Director of Agricultural Marketing :A.D.:D.D. of  district has accorded
his permission, vide order No dt....- -200_/
Whereas, both the parties are desirous of reducing in writing terms and conditions enumerated hereunder:
1) . That the leave and licence granted by the licenser to the licensee is only for a period of 11- months renewable every 11 (ELEVEN) months from the date of this agreement subject to a maximum period of 55 months.
2) On the expiry of the period of this license, the licensee shall be given first preference in case of renewal of the licence to use the'said premises for any further period (not more than 11 months at a time) provided the licensee has conformed to all the terms and conditions and rules prescribed there for during the prior occupation of the said premises.
3) If the licensee desires to renew the leave and licence for one more period of 11 months, he should submit his application to the licenser not less than 2(TWO) months before the expiry of the leave and licence. ׳
4) That the licensee shall deposit a sum equal to leave and licence fee for 10 (TEN) months with the licenser as the Security Deposit in respect of Schedule Premises. The said Security Deposit will not carry any interest. '
5) The licensee is entitled to seek reimbursement of the said security sum on his expressing desire to vacate and hand over possession of the Schedule Premises of the licensee on
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6) The licensee should pay the leave and licence fee of the previous month before 10th (TENTH) of the next month failing which the licenser has right to impose penal fee at 10% per month. .
7) If the licensee fails to remit the leave and licence fee for 3 (THREE) consecutive months, the licenser has the right to adjust the Security Deposit, besides reserving its right to recover the balance amount and to take back the possession of the Schedule Premises.
8) The licensee shall not utilise the premises for any other purpose than for which it is allotted the licenser has reserved the right to revoke the licence by giving one month’s notice to the licensee, if the Secretary is satisfied that the allotted premises is not used for the purpose for which it is allotted.
9) The licence fee will be revised every 33 months at enhancement of 5% of the leave and licence fee, the licensee should abide by it.
10) In the event of the licenser desiring to terminate the licence and take back possessions of the Schedule Premises, upon service of notice of eviction of the licensee by the licenser, the licensee shall, within 15 (FIFTEEN) days from the date of service of this notice, hand over vacant possession of the Schedule Premises to the licenser. If the licensee fails to do so, the licensor is entitled of forfeit the said Security Deposits, besides reserving its right to institute suitable legal proceedings for eviction of the licensee under the provisions of the appropriate law,
11) That the licensee shall not assign either the whole or any portion of the Schedule Premises or allow any third party/parties to be in occupation of or carry on trade of whatsoever nature in the Schedule Premises without the written consent of the licenser, '
That where the licensee is a partnership firm it shall bring to the notice of the market committee any change in constitution of the Partnership firm The licensee agrees not to assign the premises to the partners of the reconstituted partnership unless the persons who were partners of the firm bejfore change continue to be partners after the change.
12) That the licensee shall not effect any changes to the structure either permanent or temporary, either inside or outside the Schedule Premises without the written consent of the licenser, .
13) That the licensee himself shall bear and pay the electricity and water charges in respect of the electricity and water consumed by him, to the concerned authorities as per the directions issued by the licenser from time to time in this regard, .
14) That the licensee shall not carry on trade or use Schedule Premises for any illegal purposes like gambling, selling/stocking liquor/explosives/fire-crackers/any other explosives/ inflammable good/articles or do anything that may cause danger to the property of the licenser or to the life and/property of the adjacent occupiers.
15) That the licensee shall not get the right to offer the Schedule Premises as security for any loss or create any charge or encumber the same in any manner.
16) That the licensee shall be bound to quit the premises within one month of the notice of cancellation of his licence by the licenser in the event of breach of any of the terms and conditions of this licence or in the event of the licensee being in arrears for a period of 3(three) months in respect of the leave and licence fees payable as herein prescribed legal heirs, executors of the licensee are liable to pay the arrears of licence fee to the Market Committee. 
17) That the overall superintendence of the said premises shall be vested in the Market Committee whose Officers/staff shall at all reasonable entitled to inspect the said premises about its state of repairs; the licensee shall be bound to keep the premises in good and hygienic conditions, and deliver the shop to the licenser in good condition after the expiry of the licence period orwhen he is asked to vacatfe the said premises.
18) That the licensee may also revoke the licence by giving one month’s notice to the licensor. The licence will be deemed as automatically revoked after the expiry of the period.
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IN WITNESS WHEREOF both the licenser and the licensee have signed this agreement
of Leave and Licence on this       day of       200_

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AGREEMENT OF LEAVE AND LICENCE (For shop, godown, shop-cum-godown)