( 1 ) 1. The present suit is filed for the recovery of sum of Rs. 85,26,667/- comprising of the principal amount of Rs. 50 lacs towards the security deposit and the sum of Rs. 35,26,667/- towards interest at the rate of 24% p. a. on the said security deposit. Some of the material facts of the present case are as under :

( 2 ) PURSUANT to a leave and licence agreement executed on 23. 11. 98 the defendant granted to the plaintiffs a licence inrespect of a commercial premises admeasuring 7500 sq. ft being super built up area situated on the first floor of the building known as dakshana which is situated at plot no. 2. , CBD, Belapur, New Mumbai. The said area was given on licence alongwith 10 car parking space in the compound of the said building. Some of the relevant clause of the said leave and licence agreement are as under :14 (a) The Licensee shall pay to the licensor a sum of Rs. 50,00,000/- (Rs. Fifty Lacs) as and by way of refundable security deposit. The said amount of deposit shall not carry interest. (b) The deposit will be returned by the licensor to the licensee at the end of the licence period against vacant possession of the premises being handed back by the Licensee to the Licensor. (c) In the event of Licensee defaulting in handing back to the Licensor vacant possession of the premises at the end of the contract period of three years, the Licensor shall be entitled without prejudice to its other rights and remedies, to forfeit the said amount of deposit and also to sue for vacant possession. 15 (a) The Licensee shall, at least one calendar month before the expiry of the aforesaid licence period of three years, (hereinafter referred to as "the Due date") give intimating in writing to the licensor that the Licensee will be handing back to the Licensor on the Due date, the licensed premises, together with the aforesaid car parking spaces, in accordance with the provisions of clause (13) of this Agreement : (b) Thereafter the Licensor shall furnish to the Licensee, atleast four days prior to the due date a Xerox copy of a banks pay order (to be obtained by the licensor drawn in favour of the Licensee) for the said amount of the refundable deposit, namely, Rs. 50,00,000/- (fifty lacs), evidencing the readiness and willingness of the Licensor to refund to the Licensee the said security deposit simultaneously with and against the licensee handing back to the Licensor the licensed premises and the said car parking spaces in accordance with he provisions of clause (13) above. (c) If the Licensee fails to hand back to the Licensor the licensed premises alongwith the said car-parking spaces on the due date against tender by the licensor to the Licensee of such Banks pay-Order for Rs. 50,00,000/- (Rs. Fifty lacs), the licensee shall be considered to be in default. (d) If, on the other hand, the licensor fails to furnish to the Licensee a xerox copy of the Banks pay order for rs. 50,00,000/- (Rs. Fifty lacs) referred to above and fails to hand over to the licensee such Pay-order for Rs. 50,00,000/- (Rs. fifty Lacs) simultaneously with and against the Licensee tendering to and offering to hand back to the Licensor the licensed premises together with the car-parking spaces, on the due date, the licensor shall be considered to be in default and the consequences specified in clause (16) hereunder shall become operative. 16. If the the Licensor is in default as envisaged in Clause (15) (d) above, then and only in such event, the undermentioned consequences shall follow:- (a) The Licensee shall be entitled to retain with itself the licensed premises and the car-parking spaces until the time the Licensor refunds to the Licensee the aforesaid security deposit of rs. 50,00,000/- (Rs. Fifty Lacs)with interest thereon at the rate of 24% per annum from the Due Date till the date of such refund. (b) For the duration specified in sub-clause (a) above, the Licensee shall not be liable to pay any licence fee/compensation mesne profits or any

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