DEPOT SUPERINTENDENT H.P. CORPN. LTD. & ANR. versus KOLHAPUR AGRI. MARKET COMMIT. KOLHAPUR

Citation: [2007] 7 S.C.R. 1061 · Decided: 20-06-2007 · Supreme Court of India · Bench: ARIJIT PASAYAT · Disposal: Disposed off

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Judgment (excerpt)

J
DEPOT SUPERINTENDENT H.P. CORPN. LTD. & ANR.
A
·-.,t
v.
KOLHAPUR AGRI. MARKET COMMIT. KOLHAPUR
JUNE 20, 2007
[DR. ARIJIT PASAYA T AND ALT AMAS KABIR, JJ.]
B
Lease:
-~
Caltex (Acquisition of shares of Caltex) Oil Refining (/) Ltd. and of c
undertaking in India of Caltex (/) Ltd. Act, I 977-s. 7 (3)-Renewal of lease-
Held, there is no automatic renewal and there can be renewal only if it is
so desired by the Central Government-On facts, no evidence that there was
any desire in that regard by Central Government-Time granted to hand over
vacant possession.
.- Appellant-Corporation had taken the suit premises on lease from the . D
...,
respondent for a further period of 10 years. The period expired in December
1989. On 18.3.1989 i.e. prior to the expiry of the lease period, the appellant
purportedly exercised the right of renewal of the lease deed for a period of 30
years in terms of s. 7 read with s.9 of the Caltex (Acquisition of shares of
Caltex) Oil Refining (I) Ltd. and of undertaking in India of Caltex (I) Ltd. Act, E
1977.
The respondent sent notice to the appellant-Corporation calling upon
the Corporation to vacate the suit premises and hand over possession to the
respondent. Appellant did not give back possession. Respondent filed suit
for possession and mesne profit. Civil Judge decreed the suit and directed F
,;
the appellants to hand over vacant possession. First appeal was dismissed.
High Court while dismissing the appeal suggested that the appellants may be
granted time to vacate the suit plot subject to filing of undertaking. Appellant
refused to accept the condition. Hence the present appeal.
Disposing of the appeal, the Court
G
HELD : 1. The plea of the appellants that they are entitled to benefit of
s. 7(3) of Caltex (Acquisition of shares of Caltex) Oil Refining (I) Ltd. and of
-~
undertaking in India ofCaltex (I) Ltd. Act, 1977 is unacceptable as no reply
1061
H
1062
SUPREME COURT REPORTS
[2007] 7 S.C.R.
A was sent to the notice of termination and/or by referring to such right in the
•
written statement filed in the trial court. In the year 1979 i.e. on the expiry
.Y
of the lease period, if lease was to be renewed in terms of s. 7(3), extension
could have been granted in terms of original lease for a period of 20 years
from the year 1979. The appellants are not entitled to the protection of
B Maharashtra Rent Control Act, 1999. 1Para71 (1064-B, q
2. There is no automatic renewal and there can be renewal only if it is
so desired by the Central Government. There is no material placed before
the courts below that there was any desire in that regard by the Central
Government. In terms of the notice dated 11.4.2005 time for handing over
C the possession is extended up to end of June, 2009. I Para 10) [1064-F, G)
D
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2903 of2007.
From the Final Ju<igment of the Court dated I 0.02.2005 of the High
Court of Judicature at Bombay in second Appeal No. 1375 of2004.
Sanjay Kapur for the Appellants.
Shivaji M. Jadhav for the Respondents.
The Judgment of the Court was delivered by
E
DR ARIJIT PASAYAT, J. 1. Leave granted.
2. Challenge in this appeal is to the order passed by a learned Single
Judge of the Bombay High Court dismissing the Second appeal filed by the
appellant. While issuing notice on 11.4.2005 it was indicated that the appellant
F has to indicate whether he is willing to accept the suggestions given by the
High Court about vacating the premises by 2009.
3. Background facts in a nutshell are as follows:
Appellant is running a retail outlet Petrol Pump in the suit premises in
Kolhapur for which a lease was executed on 28.12.1959 between the predecessor
G in interest of the appellant and the respondent for a period of 20 years with
an option of renewal for a further period of ten years. The period expired in
December, 1989. On 18.3.1989 i.e. prior to the expiry of the lease period, the
appellant purportedly exercised the right of renewal of the lease deed for a
period of 30 years in terms of Section 7 read with Section 9 of the Caltex
H (Acquisition of shares of Caltex) Oil Refining (I) Ltd. and of undertaking in
t ...
I
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DEPOT SUP. HP. CORPN LTD. & ANR. v. KOLHAPUR AGRJ MARKET COMMTI. KOLHAPUR [PASAYAT.l) } Q63
India of Caltex (I) Ltd. Act, 1977 (hereinafter referred to as "the Acquisition A
Act").
According to the appellant, the respondent by its conduct agreed to
exten

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