Licensee Cannot Seek Injunction Once License Expires: Andhra Pradesh High Court

A License Does Not Create Any Right Over Property, It Is Mere Permission That Can Be Revoked Anytime - Andhra Pradesh High Court has ruled that a licensee cannot seek a permanent injunction against the property owner once the license period has expired. In CH. Pushpa & Ors v. Medical Superintendent, Machilipatnam, Justice B.V.L.N. Chakravarthi emphasized that “a license does not create any right in the property. It is a bare permission that can be revoked at any time by the owner.”

The case revolved around a plaintiff who was permitted to run a canteen on hospital premises under a license agreement. When the authorities asked the plaintiff to vacate, the plaintiff approached the court seeking a permanent injunction and declaration of rights over the property. While the trial court ruled in favor of the plaintiff, the First Appellate Court reversed the decision, prompting the plaintiff to file a second appeal before the High Court.

Dismissing the appeal, the High Court reinforced that a licensee does not acquire ownership rights over the property and cannot claim protection beyond the agreed period. The court relied on C.M. Beena v. P.S. Ramachandra Rao (2004) and Associated Hotels India Ltd v. R.N. Kapoor (1959), observing that “once the license expires, the licensee has no right to remain in possession and cannot claim any relief against eviction.”

The judgment also pointed out procedural lapses, stating that the plaintiff failed to implead the State, which was a necessary party in the dispute. “In the light of specific findings, the suit fails for non-joinder of a necessary and proper party,” the court held.

Reaffirming that a mere license cannot be used as a basis for claiming property rights, the court concluded: “A suit for declaration and permanent injunction cannot be maintained by a licensee once the license ceases to exist.” The appeal was dismissed, with no order as to costs.

Date of decision: 10/03/2025