A tenant's long-term non-payment of rent negates claims for automatic lease renewal, emphasizing the necessity of fair conduct in exercising statutory rights.

Judgment :

(V. GOPALA KRISHNA RAO, J.)

This second appeal under Section 100 of the Code of Civil Procedure (“C.P.C.” for short) is filed aggrieved against the Judgment and decree, dated 06.07.2021 in A.S.No.25 of 2017, on the file of the X Additional District & Sessions Judge, Visakhapatnam at Anakapalle, confirming the Judgment and decree, dated 07.09.2017 in O.S.No.519 of 2003, on the file of Principal Junior Civil Judge, Anakapalle.

2. The appellant herein is the 1^st defendant and the 1^st respondent herein is the plaintiff and the respondent Nos.2 to 5 herein are defendant Nos.2 to 5 in O.S.No.519 of 2003, on the file of Principal Junior Civil Judge, Anakapalle.

During the pendency of the appeal, the 1^st respondent died and his legal representatives were brought on record as respondent Nos.6 to 11.

3. The plaintiff initiated action in O.S.No.519 of 2003, on the file of Principal Junior Civil Judge, Anakapalle, with a prayer for eviction of the 1^st defendant company from the schedule property and for costs of the suit.

4. The learned Principal Junior Civil Judge, Anakapalle, decreed the suit. Felt aggrieved of the same, the 1^st defendant in the above said suit filed A.S.No.25 of 2017, on the file of the X Additional District & Sessions Judge, Visakhapatnam at Anakapalle. The learned X Additional District & Sessions Judge, Visakhapatnam at Anakapalle, dismissed the appeal by confirming the decree and judgment passed by the trial Court. Aggrieved thereby, the 1^st defendant in the suit approached this Court by way of second appeal.

5. For the sake of convenience, both parties in the appeal will be referred to as they are arrayed in the original suit.

6. The case of the plaintiff, in brief, as set out in the plaint averments in O.S.No.519 of 2003, is as follows:

The plaint schedule property is an extent of 48,000 sq. feet of site/land situated in Town Survey No.1546 of Anakapalle Municipality, wherein the 1^st defendant is running a petrol bunk through its agent i.e., 2^nd defendant. By virtue of a partition deed in Doc.No.18680/47, the schedule property fell to the share of Yagneswara Chainulu and China Kasipathi Chainulu, who are brothers. Impelled by custom, Yegneswara Chainulu got the western side of it and China Kasipathi Chainulu got the remaining, under an oral agreement. Later, 1^st defendant got issued a notice, dated 17.09.1993 to the plaintiff and others for renewal of the lease for another period of 30 years. The said notice is not valid and binding on them. By the said letter, 1^st defendant company exercised its option for renewal of lease for a further period of 30 years from 01.04.1994. The plaintiff refused to receive the said letter. The plaintiff and late Eswarudu asked 1^st defendant company to vacate the said premises and handover the same to them. The said exercise of right to renewal is only discretionary and not mandatory. The 1^st defendant company filed O.S.No.273 of 1997 against the plaintiff and others for specific performance of the said covenant in the agreement, dated 22.09.1964. Since the said lease is determined as per clause IV of para 2 of the lease deed, dated 22.09.1964, the 1^st defendant is wrongfully continuing in the said property, even without paying or depositing the agreed rent of Rs.300/- per quarter from 01.04.1994 till date. Their continuation in possession of the said property amounts to unlawful occupation and trespass for which the 1^st defendant is liable to pay damages. Thus, the plaintiff is entitled to the reliefs claimed.

7. The 1^st defendant filed written statement before the trial Court denying the material averments in the plaint and contended as follows:

Originally the schedule property belonged to one Vedula China Kasipathi Chainulu, Yegneswara Chainulu and Eswarudu. On 07.09.1964 they entered into a lease agreement over the schedule property with Burma Shell Oil Storage Distribution Co., Ltd., for a period of 30 years commencing from 01.04.1964 at a quarterly rent of Rs.300/-. The said l