Lease versus licence depends on intention and substance; exclusive possession and the word rent are not conclusive.

The distinction between a lease and a licence turns on the parties' intention as gathered from the entire compromise and surrounding circumstances. Exclusive possession is relevant but not conclusive; the real character of the arrangement depends on substance, not labels. A compromise decree allowing continued occupation until a fixed date, with default leading to execution of the decree, may indicate permissive occupation rather than a landlord-tenant relationship. The use of the word "rent" and a temporary right to remain in the premises do not by themselves create a tenancy where the terms negate such an intention. On that analysis, the occupant would not fall within the statutory definition of "tenant" under the Orissa House-Rent Control Act, 1958.

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Issues: Whether the compromise decree created a lease or merely a licence, and consequently whether the judgment-debtor was a tenant entitled to protection under the Orissa House-Rent Control Act, 1958.

Analysis: The decisive consideration in distinguishing a lease from a licence is the intention of the parties, to be gathered from the whole of the compromise and the surrounding circumstances. Exclusive possession is relevant but not conclusive. Here, the decree-holder had sued for ejectment, the compromise fixed an outer date for vacating the house, and the clause enabling execution of the decree on default of payment of rent showed that the arrangement was not intended to create a landlord-tenant relationship. The use of the word "rent" and the grant of time for continued occupation did not alter the real character of the arrangement, which was only permissive occupation. On that construction, the judgment-debtor did not answer the statutory definition of "tenant" in Section 2(5) of the Act.

Conclusion: The compromise deed did not create a lease but only a licence, and the judgment-debtor was not a tenant within the meaning of the Act.

Ratio Decidendi: In determining whether an occupation arrangement is a lease or a licence, the substance of the transaction and the intention of the parties govern, and exclusive possession or use of the word "rent" is not conclusive where the surrounding terms negate the creation of a tenancy.

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