There is great difference between "Lease" and "Leave & License". A license implies mere permission. The definition of license has been given in Section 52 of the Indian Easement Act. It states:

"Where one person grants to another or to a definite number of other persons a right to do or continue to do, in or upon the immovable property of the grantor something which would, in the absence of such right, be unlawful, and such right does not amount to an easement or an interest in the property, the right is called a license."

A lease is defined in Section 105 of the Transfer of Property Act as follows: "A lease of immovable property is a transfer of right to enjoy such property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee, who accepts the transfer on such terms."

In section 7(5) of the Maharashtra Rent Control Act, 1999, a "licensee" is defined as follows: "Licensee" in respect of any premises or any part thereof, means the person who is in occupation of the premises or such part as the case may be, under a subsisting agreement for license given for a license fee or charge; and includes any person in such occupation of any premises or part thereof in a building vesting in or leased to a co-operative housing society registered or deemed to be registered under the Maharashtra Co-operative Societies Act, 1960; but does not include a paying guest, a member of a family residing together, a person in the service or employment of the licensor, or a person conducting a running business belonging to the licensor or a person having any accommodation for rendering or carrying on medical or para medical services or activities in or near a nursing home, hospital or sanatorium or a person having any accommodation in a hotel, lodging house, hostel, guest house, club, nursing home, hospital, sanatorium, dharmshala, home for widows, orphans or like premises, marriage or public hall or like premises, or in a place of amusement or entertainment or like institution, or in any premises belonging to or held by an employee or his spouse who on account of exigencies or service or provisions of residence attached to his or her post or office is temporarily not occupying the premises, provided that he or she charges license fee or charge for such premises, and any additional sum for service supplied with such premises or a person having accommodation in any premises or part thereof for conducting a canteen, creche, dispensary or other services as amenities by any undertaking or institution; and the expressions "licence", "licensor" and "premises given on license" shall be construed accordingly.