Monday, 26 April 2021

Whether the lessee has the right to renewal of lease can claim renewal of lease multiple times?

  Finally, Rustom Behramji Colah has considered the question

whether a perpetual right of renewal can be held to exist in law. To answer this question, it has relied on the Supreme Court’s decision in State of U.P. v. Lalji Tandon(2004) 1 SCC 1. And, eventually, it has adopted the Lalji Tandon’s proposition that the Court always leans against a perpetual renewal. So “where there is a clause for renewal subject to the same terms and conditions, it would be construed as giving a right to renewal for the same period as the period of the original lease, but not a right to second or third renewal and so on unless, of course, the language is clear and unambiguous.”{Para 20}

The Court leans against a perpetual right of renewal even when the clause of renewal provides a renewal on the same terms and conditions.” So it has rejected the Corporation’s plea that it has a right for further renewal.

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

CIVIL APPELLATE JURISDICTION

SECOND APPEAL NO. 359 OF 2014

IN

REGULAR CIVIL APPEAL NO. 257 OF 2005

IN

REGULAR CIVIL SUIT NO. 1461 OF 1995

Bharat Petroleum Corporation Ltd. Vs Shri Champalal Vithuram Jajoo


CORAM : DAMA SESHADRI NAIDU, J.

Dated : 27th April 2020.

Read full Judgment here: Click here

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