Arun Kumar
in Trade Law
Asked September 19, 2017

Shop used by someone else on mother's trade license

  • 1 Answer

My father having a trade license issued by SDMC from last 35 years of a shop on rent which was later transferred to my mother's name after my father's death. However now someone else is using the shop from last around 10 years on my mother's License with the consent of Shop owner. Kindly guide me through options which my mother is having to vacate the shop from the person currently using it and from the Shop owner.

Answer 1

Trade License is a license or a permit issued by the municipal corporation or local panchayat to allow any individual or business to carry out a particular trade or a business for which it is issued in the given premises. In the above case if by transfer you mean that the license was renewd and issued in your mother's name then it indicates that your mother has exclusive right to carry on the trade in question. No person can operate any trade based on another perosn's license. Moreover, since the license has been issued in your mother's name, no other person including the owner of the shop has the right to transfer such license to any thrid person.

However, in case of rented shops, rent agreement is an essential for acquisition of such license. Eviction of the tenant, your mother in this case, depends upon the rent agreement and the respective rental laws of the particular State. In general course rent agreements comprise a clause that eviction may be demanded by the owner with a prior notice of three months. This depends exclusively upon individual rent agreements. Issuance of trade license does not ensure that the rented shop becomes a permanent property of the tenant or that the tenant has indifinite rights to carry on the specific trade. Trade license for a rented shop indicates that the tenant has the right to carry on the trade as long as she has certain rights over the property. Hence, in this case, your mother may be asked to vacate the property in accordance to her rental agreement but as long as the rental agreement is in force she has the righ to carry on the trade and the owner cannot transfer such right to any other person.

Agree Comment 0 Agrees over 4 years ago

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