The main legal point established in the judgment is the distinction between lease and licence, emphasizing the right to exclusive possession and the stipulated rent as key factors in determining the nature of the transaction.

RAMAKRISHNAN, J.:- The main point on which the fate of the case rests is the construction of an agreement between the appellant-defendant and respondent-plaintiff and marked as Ext. Al in the suit. The trial court construed it as a licence. The said finding has been challenged in this appeal by the defendant.

2. The plaintiff the owner of a building with municipal No. 9/207 permitted the defendant to use a portion of the building and its premises subject to the terms and conditions contained in Ext. A1 agreement. The portion of the building and premises thus permitted to be used by the defendant is described in the schedule to Ext. A1 as follows :

"The open yard measuring 10' x 17' in front of the office room together with the said office room measuing 17' x 7'6" and the god own measuring 46'6" x 15'9" to the south of the office and Pandikasala of the licensors in premises No. 9/207 abutting Beach Road in Nagaram Amsom and Desom, Calicut City."

In Ext. A1 the plaintiff and defendant are respectively referred to as licensor and licensee. The agreement was dated 1-11-1972 and was for a period of 11 months. The monthly remuneration or fee agreed to be paid by the licensee was Rs. 375/-. The licensee continued the user of the premises even after the expiry of the period fixed in Ext. Al and the respondent terminated the licence only with effect from 1-8-1980. Thereafter the present suit was instituted in October, 1980, for injunction restraining the defendant from entering the schedule premises or in the alternative for recovery of possession awarding damages for use and occupation. The short defence was that the appellant is a tenant and not a licensee and as such the suit is liable to be dismissed.

3. The important provisions in the agreement may be summarised thus : The agreement recited that the buildings and open yards mentioned in the schedule to the agreement and which are in the .possession of the licensor, are allowed to be used by the licensee "for sorting, bagging, storing etc., of coconuts and for sorting, drying and storing of copra, other hill produces, grains, oil and oilseeds traded by the licensees for the purposes of their business, the office room as office for the staff supervising the sorting, bagging, storing etc., of coconuts and for sorting, drying and storing of copra, other hill produces, grains, oil and oilseeds traded by the licensees for the purpose of their business and the godown for storing the bagged and unbagged coconuts, copra other hill produces, grains, oil and oilseeds traded by the licensees for the purpose of their business without causing damage to the godown". The agreement further provided that the licensee shall use the premises only for the purpose mentioned therein. It was further provided that on the expiry of the term 30-9-1973 the licensee would completely cease to use the scheduled premises and the permission given shall not be operative and valid on and after 30-9-1973. There is a prohibition in the agreement against erecting or putting up any shed in the open yard or effecting any improvement or alteration whatsoever to the office room and godown. A right to put an end to and determine the term agreed upon is reserved in favour of the licensor and particularly in case the licensee commits default in complying with any of the conditions. The agreement also contained a clause that the licensor shall have and always be deemed to have possession and control over the open yard, office room, and godown described in the schedule hereunder subject to the permission granted as per the agreement.

4. The evidence adduced in the case showed that even before the execution of Ex. A1 agreement the self same building and premises were allowed to be used by the defendant as per four earlier written agreements successively entered into by the plaintiff and defendant and containing exactly similar terms and conditions. The said four documents are marked as Exts. B1 to B4 dated 1-2-1969, 1-1-197