(1) THIS appeal is filed against the judgment and order dated 16/6/1993 passed by the Division Bench of the High Court of Judicature at Madras in OSA No. 213 of 1986, fixing the mesne profits @ Rs. 1,650.00 per month for the suit property let out by the Corporation of Madras to the respondent at Marina Beach, Chennai.

(2) IT is an admitted fact that the appellant has let out the premises to the respondent for a period of 15 years from 5/3/1961 to 4/3/1976, on a monthly rent of Rs. 1,650.00. Thereafter, as the lease was to expire on 4/3/1976, the respondent requested the Corporation to extend the lease period for a period of 30 years and expressed his desire to pay higher rent. The Corporation, by its resolution dated 12/1/1976, agreed to extend the period of lease only for a period of 15 years on a monthly rent of Rs. 4,000.00. The respondent was informed by the Special Officer, Corporation of Madras, that the lease was extended for a period of 15 years on a monthly rent of Rs4000. On 4-5- 1976, the Managing Director of M/s Buhari & Co. Pvt. Ltd., who had been hitherto running the hotel, gave his consent and requested the Corporation to send the draft lease deed for