JUDGMENT

S. H. KAPADIA, J.

Leave granted in S.L.P. (C) No.18371 of 2006.

2. In this batch of civil appeals we are concerned with two types of matters - one concerning perpetual sub-lease and the other concerning lease.

3. The lead matter is Civil Appeal Nos.6802-6806 of 2003 - Municipal Corporation of Delhi vs. M/s. Shashnak Steel Industries Pvt. Ltd. which concerns Perpetual Sub-lease dated 20.2.81. Similarly the lead matter for the other set of civil appeals is Civil Appeal No.1011 of 2005 - Municipal Corporation of Delhi v. M/s. Gauri Constructions Co. CIVIL APPEAL NOS.6802-6806 OF 2003

4. A Perpetual Sub-lease dated 20.2.1981 stood executed between the President of India (as the lessor), Mohan Co-operative Industrial Estate Ltd. (as the lessee) and M/s. Shashnak Steel Industries Pvt. Ltd. (as the sub-lessee) of an industrial plot.

5. We quote hereinbelow some of the relevant recitals and the terms and conditions of the said Deed dated 20.2.1981:

"RECITALS

This indenture made this Twentieth (20th) of February One thousand nine hundred and Eighty one between the President of India (hereinafter called "the lessor") of the one part and the Mohan Co-operative Industrial Estate Ltd. Society registered under the Bombay Co-operative Societies Act, 1925, as in force in the Union Territory of Delhi and having its registered office at S. Mohan Singh Building, Connaught Lane, New Delhi hereinafter called "the Lessee" of the second part and M/s. Shashank Steel Industries Pvt. Ltd. hereinafter called sub-lessee of the third part.

(i) Whereas by a lease executed on the Twentieth (20th) of February One thousand nine hundred and Eighty and registered in office of the Registrar/Sub-Registrar, Delhi/New Delhi (hereinafter called "the lease", a copy of which is annexed hereto and marked `X') the Lessor demised unto the lessee in perpetuity the industrial plots as mentioned therein.

(ii) And whereas under the lease the lessee has to sub-lease, on such premium and yearly rent as may be fixed by the lessor, one industrial plot to each of the members of the lessee who may be approved by the Chief Commissioner Delhi (hereinafter called the Chief Commissioner") for carrying on such manufacturing process or running such industry as may be approved by the Chief Commissioner.

(iii) And whereas the Sub-lessee has applied to the lessee for the grant of a perpetual sub-lease of an industrial plot and, on the faith of the statements and representations made by the Sub- lessee, the Lessee has agreed grant and the lessor has agreed to confirm a perpetual sub-lease of an industrial plot.

(iv) And whereas on an application by the lessee the lessor has fixed the amount to be paid initially towards premium before the execution of these presents (and the lessor shall fix subsequently additional or sum payable towards premium as provided in the covenants hereinafter contained) and the yearly of industrial plot hereby sub-leased.

(v) And whereas the Chief Commissioner has approved the sub-lessee and the manufacturing process be carried on or the industry to be run on the said industrial plot by the sub-lessee.

Now this indenture witnesseth that, in consideration of the sub-lessee having paid to the lessee 16,093.60 Sixteen thousand and ninety three and paise sixty only towards premium before the execution of these present (the receipt whereof the lessee hereby acknowledges) and of the rent hereinafter reserved and of the covenants on the part of the Sub-lessee hereinafter contained, the lessee doth hereby sub-lease and the lessor doth hereby confirm unto the sub-lessee. .........

Subject always to the exceptions reservations, covenants and conditions contained in the lease and hereinafter contained that is to say as follows:-

Covenants and the conditions contained in the Lease

I. The lessor ...

(1) The Sub-lessee shall pay to the lessee within such time such additional sum or sums towards premium in respect of the industrial plot as may be decided upon and fixed by the lessor on ac