OK. Permission to teach...
There are things that I have been taught, that I know and understand, but that I have not been given permission to teach, or only to teach them in our class. Obviously, short of showing up and kicking my tail, he can't stop me from teaching anything. But our relationship is really based on trust. I trust my teacher to teach me well, faithfully sharing the system with me, to respect me, and he trusts me to practice what I'm taught, and to respect his wishes in what I teach, as I teach the system faithfully. For me to teach that material without permission shatters that trust.
Now, in the particular instance of the OP... It sounds a lot more like the instructor has deeper issues. His character seems suspect, from the story of his leaving the first school, all the way through this. But I also only have one side of the story here, so I won't go beyond saying things are suspect. I don't know whether there may have been misunderstandings or miscommunications. Moving the school around may have been about rent as much as anything else...