Q: Does the usage of the word “can” instead of “shall” in a contract or statute make a difference?

Yes. The Supreme Court in Nagreeka Indcon Products Pvt. Ltd. v. Cargocare Logistics (India) Pvt. Ltd. [2026 INSC 384] clarified that “shall” creates a binding obligation, while “can” (or “may” ) is optional and gives discretion. For entrepreneurs, this means that if your agreement says you can do something (like refer a dispute to arbitration or a council), you are free to choose whether to do so. But if it says you shall , you are legally bound to follow that procedure without exception.

Q: Can a landlord unilaterally cancel a 99‑year registered lease deed by calling it a licence?

No. In Vivekananda Kendra v. Pradeep Kumar Aggarwalla [2026 INSC 199], the Supreme Court held that a registered instrument with clear lease terms cannot be treated as a licence. Such unilateral cancellation is invalid, and the lessee’s possession and rights must be protected.

Question 1

What is the difference between a lease and a licence under Indian property law?

dhiraj.sharma@justicum.com · Accepted Answer

A lease transfers a legal interest in immovable property and grants exclusive possession for a fixed term with rent, whereas a licence merely gives permission to use property without transferring any interest. The Supreme Court in Associated Hotels of India Ltd. v. R.N. Kapoor (AIR 1959 SC 1262) held that the real test is whether exclusive possession is given: if yes, it is a lease; if not, it is a licence. Similarly, in Rajbir Kaur v. S. Chhokar (AIR 1988 SC 1845), the Court reiterated that substance prevails over labels — even if an agreement is called a “licence,” if it grants exclusive possession, it will be treated as a lease.

Question 2

What is the difference between a lease and a licence under Indian property law?

dhiraj.sharma@justicum.com · Accepted Answer

A lease transfers a legal interest in immovable property and grants exclusive possession for a fixed term with rent, whereas a licence merely gives permission to use property without transferring any interest. The Supreme Court in Associated Hotels of India Ltd. v. R.N. Kapoor (AIR 1959 SC 1262) held that the real test is whether exclusive possession is given: if yes, it is a lease; if not, it is a licence. Similarly, in Rajbir Kaur v. S. Chhokar (AIR 1988 SC 1845), the Court reiterated that substance prevails over labels — even if an agreement is called a “licence,” if it grants exclusive possession, it will be treated as a lease.

Question 3

What is the difference between a lease and a licence under Indian property law?

dhiraj.sharma@justicum.com · Accepted Answer

A lease transfers a legal interest in immovable property and grants exclusive possession for a fixed term with rent, whereas a licence merely gives permission to use property without transferring any interest. The Supreme Court in Associated Hotels of India Ltd. v. R.N. Kapoor (AIR 1959 SC 1262) held that the real test is whether exclusive possession is given: if yes, it is a lease; if not, it is a licence. Similarly, in Rajbir Kaur v. S. Chhokar (AIR 1988 SC 1845), the Court reiterated that substance prevails over labels — even if an agreement is called a “licence,” if it grants exclusive possession, it will be treated as a lease.

Question 4

If a court decree orders me to pay the balance sale consideration within three months, but I miss that deadline, can I still get the property through execution of the decree?

dhiraj.sharma@justicum.com · Accepted Answer

Yes, but only if you can prove continuous readiness and willingness to perform your part of the contract. In Habban Shah v. Sheruddin [2026 INSC 451] and Jayamma case [2026 INSC 651], the Supreme Court clarified that missing a deadline or filing late does not automatically bar relief. However, if you fail to show financial capacity and genuine intent at the relevant time, the decree or claim becomes inexecutable.

Question 5

What is the difference between a lease and a licence under Indian property law?

dhiraj.sharma@justicum.com · Accepted Answer

A lease transfers a legal interest in immovable property and grants exclusive possession for a fixed term with rent, whereas a licence merely gives permission to use property without transferring any interest. The Supreme Court in Associated Hotels of India Ltd. v. R.N. Kapoor (AIR 1959 SC 1262) held that the real test is whether exclusive possession is given: if yes, it is a lease; if not, it is a licence. Similarly, in Rajbir Kaur v. S. Chhokar (AIR 1988 SC 1845), the Court reiterated that substance prevails over labels — even if an agreement is called a “licence,” if it grants exclusive possession, it will be treated as a lease.

Question 6

Does the usage of the word “can” instead of “shall” in a contract or statute make a difference?

dhiraj.sharma@justicum.com · Accepted Answer

Yes. The Supreme Court in Nagreeka Indcon Products Pvt. Ltd. v. Cargocare Logistics (India) Pvt. Ltd. [2026 INSC 384] clarified that “shall” creates a binding obligation, while “can” (or “may”) is optional and gives discretion. For entrepreneurs, this means that if your agreement says you can do something (like refer a dispute to arbitration or a council), you are free to choose whether to do so. But if it says you shall, you are legally bound to follow that procedure without exception.

Question 7

Can a landlord unilaterally cancel a 99‑year registered lease deed by calling it a licence?

dhiraj.sharma@justicum.com · Accepted Answer

No. In Vivekananda Kendra v. Pradeep Kumar Aggarwalla [2026 INSC 199], the Supreme Court held that a registered instrument with clear lease terms cannot be treated as a licence. Such unilateral cancellation is invalid, and the lessee’s possession and rights must be protected.

What is the difference between a lease and a licence under Indian property law?

What is the difference between a lease and a licence under Indian property law?

If a court decree orders me to pay the balance sale consideration within three months, but I miss that deadline, can I still get the property through execution of the decree?

What is the difference between a lease and a licence under Indian property law?

Does the usage of the word “can” instead of “shall” in a contract or statute make a difference?

Can a landlord unilaterally cancel a 99‑year registered lease deed by calling it a licence?

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