Tenants under municipal leases have first rights as direct tenants post-lease expiry, with no automatic extension or renewal rights if not sought prior; eviction can only occur post determination by municipal authority.

JUDGMENT/ORDER

1. These group of Petitions represent a battle between Solapur Municipal Corporation on one hand and successors in-title of lessees and their sub-tenants on the other, over tenure of leasehold rights in municipal plot of land. The issue is essentially about right to seek extension/renewal of lease after expiry of its first tenure. Solapur Municipal Corporation, back in 1967, entered into an arrangement for construction of a Town Hall on its land by granting lease thereof in favour of lessees for 50 years. The lessees have constructed a building on the land comprising a Hall for Municipal Corporation and shops/offices and have inducted sub-tenants therein over the years. After end of tenure of lease of 50 years, the Municipal Corporation wants back the land with construction, whereas the successors-in-title of original lessees as well as the sub-tenants assert right to continue the lease for another tenure of 50 years. At the end of tenure of lease on 19/12/2017, the Municipal Corporation has treated the occupation by successors-in-title of lessees and sub-tenants as unauthorised and has passed Eviction Order dtd. 17/5/2018 under Sec. 81-B of the Maharashtra Municipal Corporations Act, 1949 (the MMC Act, 1949). Successors-intitle of lessees and sub-tenants challenged the Eviction Order before the Principal District Judge, whose decision is not palatable to both the rival parties and both of them are before this Court challenging the Principal District Judge's decision in these cross Petitions.

2. Accordingly present Petitions raise a challenge to the common judgment and order dtd. 26/7/2019 passed by the Principal District Judge, Solapur, in various Municipal Appeals filed by the successors-intitle of the original lessees and sub-tenants challenging eviction order dtd. 17/5/2018. The Solapur Municipal Corporation is aggrieved by finding of the Principal District Judge in holding that successors-in-title of lessees have right to seek 'renewal' of lease and that their request for renewal was erroneously rejected by an incompetent authority as well as its direction in setting aside the eviction order and directing the Municipal Corporation to decide the 'renewal' application. The successors-in-title of lessees and sub-tenants, on the other hand, are aggrieved by the finding that the lessees do not have a right of 'extension' of lease and the Order granting discretion to Municipal Corporation to decide 'renewal' application. They are also aggrieved by the quantum of interim rent fixed by the Principal District judge.

FACTUAL BACKGROUND

3. A brief factual narration as a prologue to the judgment would be necessary. The land bearing CTS No. 8624 alongwith Municipal House No.86 admeasuring 24 gunthas and 41 square yards is owned by Solapur Municipal Corporation. Out of that larger portion, smaller portion of land admeasuring 20148 square feet (leased land) was decided to be let out by the Municipal Corporation. It appears that Shri Rajgopal Ramchandra Upadhye and Shri Parasmal Jayram Joshi applied for allotment of lease of that land. The General Body of the Municipal Corporation adopted Resolution No.161 on 13/12/1967, by which it was resolved to allot the land to Shri Rajgopal Ramchandra Upadhye and Shri Parasmal Jayram Joshi on lease for a period of 50 years. Some of the terms and conditions of the Resolution (which are being referred to in detail in paragraphs so follow) included execution of written agreement for lease for a period of 50 years, payment of