Explain Irrevocable licence with illustrations

 An irrevocable licence is a licence which, once validly created, cannot be revoked at the mere will of the grantor in certain recognized situations. Under Section 60 of the Indian Easements Act, a licence is generally revocable, but it becomes irrevocable mainly when it is coupled with a transfer of property and such transfer is in force, or when the licensee, acting upon the licence, has executed a work of permanent character and incurred expenses in doing so.

Meaning

A licence does not create any interest in the property; it only makes lawful an act which would otherwise be unlawful. But where the licensee has altered his position on the faith of the licence in the manner recognized by law, equity and Section 60 protect him against arbitrary revocation.

When irrevocable

A licence is treated as irrevocable in these main situations:

• When it is coupled with a transfer of property and that transfer is still subsisting.

• When the licensee, acting on the licence, has executed a work of permanent character.

• The licensee must also have incurred expenses in executing that permanent work.

So, under Section 60(b), three facts must usually be shown:

• Acting upon the licence.

• Execution of work of permanent character.

• Incurring expenses in that work.

Illustrations

• A permits B to enter his land and build a permanent drainage line or boundary wall, and B spends substantial money doing so on the strength of that permission. A cannot later revoke the licence at his mere will, because B has executed permanent work acting upon the licence.

• A grants B a right to use a portion of land along with a transfer-connected right, and that right is being enjoyed under the transfer. Such licence is treated as irrevocable so long as the transfer-related right subsists.

• If A merely permits B to use a room temporarily, without any transfer of interest and without B making permanent construction or incurring such expenditure, the licence remains revocable.

Important points

Section 60 is not treated as exhaustive, and parties may by express or implied agreement make a licence irrevocable or revocable subject to conditions. At the same time, the burden to prove irrevocability lies on the person asserting that the licence is irrevocable.

Also remember that a permanent structure alone is not enough unless it was made acting upon the licence and with expenditure by the licensee. 

Interview answer

You can say: “An irrevocable licence is one which the grantor cannot withdraw at will. Under Section 60 of the Indian Easements Act, this happens mainly in two cases: first, where the licence is coupled with transfer of property; and second, where the licensee, acting upon the licence, has executed work of permanent character and incurred expenses. For example, if the owner allows another to build a permanent structure on the land and the licensee spends money relying on that permission, the licence becomes irrevocable.”

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