The term ‘Licence’ has been defined under the Indian Easements Act, 1882. It states that when a person is granted a right, to do or continue to do, in or upon the immovable property of the grantor, any act which would be unlawful in the absence of such right and such right does not amount to an easement or an interest in the property, the right is called a license. A right of easement is possessed by the owner or occupier of certain land for the beneficial enjoyment of that land. When a person takes a property for his own use and occupation for a prescribed period of time, it is called a lease and when an instrument permits a person to use a property and the legal possession remains with the owner or the original lessee it is called a license. A license may be granted, either expressly or impliedly on the basis of the conduct of the grantor and an agreement which aims to create an easement, but is ineffective for that purpose, may operate to create a license. In case of Leave and License, transfer of interest takes place subject to the permission of the owner of the property and an Agreement for Leave and License can be terminated as per the terms of the agreement and possession of property can be demanded back from the licensee. In case of Tenancy, there is a transfer of interest. The relationship between landlord and tenant is established by a rental agreement which is legally binding upon the both the parties. A rental agreement establishes that a tenant shall not be evicted by the owner except on the grounds of eviction mentioned under the Rent Act.