The court held that the Deputy Commissioner's order was illegal and unreasonable because it violated the terms of the original lease, which provided for renewal for a further period of 30 years subject to fulfillment of conditions and payment of enhanced rent. The court also found that the conditions imposed by the Deputy Commissioner were extraneous to the lease agreement and unreasonable. The court further held that the Deputy Commissioner failed to consider the legitimate expectation of the petitioners to have their leases renewed and acted arbitrarily in refusing to renew the leases without any valid reason.

S.B. Sinha, J.

1. In this writ application, the petitioner has inter alia prayed for issuance of an appropriate writ directing the respondents to withdraw and/or cancel and/or rescind a notice dated 29th November, 1988 as contained in Annexure-6 to the writ application whereby and whereunder the petitioner was intimated that renewal of Khas Mahal lease would be granted for a period of 15 years only in respect of holding no. 108 measuring 1 acre 12 decimals of land on the conditions mentioned therein and for a writ of or in the nature of mandamus directing the respondents to review the deeds of lease in respect of holding nos. 108, 137, 77 and 79 in village Sarley, Sarkarihata, Dist. Hazarihagh for a period of 30 years.

2. The short facts leading to this proceeding are as follows :

By reason of several registered indentures of lease granted by the Secretary of State executed on 1st April, 1981, 9th March, 1920 and 24th May, 1926 lease in respect of holding nos. 137 (plot no. 257); holding nos. 250/264 (plot no. 79); plot nos. 257/585 (holding no. 108 of village Sarley was granted to various persons. By reason of the orders dated 4th April 1936, 23rd April, 1936 and 21st May, 1936, the Khas Mahal authorities accorded permission to original lessees to transfer the said lands in favour of late Radha Nath Roy, predecessor in-interest of the writ petitioners and pursuant thereto the original lessees transferred their right, title and interest in favour of Radha Nath Roy by reason or registered deeds of sale dated 21st May, 1936, 5th December, 1936 and 19th September, 1942.

3. The said Radha Nath Roy applied for renewal of the aforementioned leases and by three separate memos dated 5th February, 1948, the State renewed the said leases in respect of the plots aforementioned on execution of three deeds of lease in favour or late Radha Nath Roy, renewing the respective leases for a further period of 30 years with effect from 1st April, 1948.

4. On 23rd May, 1948, a registered deed of lease was executed by the Stale of Bihar in favour of one Manmatho Nath Ghosh for a period or 30 years with effect from 1st April, 1948 in respect of plot nos. 265, 266 and 268 to 283 being holding no. 77 of village Sarley. By an order dated 19th May, 1949, the Deputy Commissioner, Hazaribagh, accorded approval to the said lessee Manmatho Nath Ghosh and Pramatho Nath Ghosh to transfer their right in the said lands to late Radha Nath Roy and pursuant thereto, an Indenture of assignment dated 19th January, 1950 was executed by the aforementioned lessees in favour or late Radha Nath Roy.

5. On 22nd February, 1958, late Radha Nath Roy executed a will and on 21st September, 1964 executed codicil in the said will appointing his wife Smt. Annapurna Roy his Secretary Miss Marjoria Roberts and his son Rajat Nath Roy (petitioner no.1) as Executor and Executrixes to the Estate of said Radha Nath Roy. Radha Nath Roy died on 12th February, 1966.

6. A probate in respect of the aforementioned will was obtained and, thereafter, the Executor and Executirxes aforementioned got their names mutated in the records of the State of Bihar as lessees. Smt. Annapurna Roy died in February, 1972 and on 1st November, 1974 petitioner no. 1 Miss Marjorie Roberts obtained permission under section 31 (1) of the Foreign Exchange Regulation Act, 1973 to hold and deal with immovable properties in India.

On 1st November, 1977 petitioner no. 1 and Miss Marjorie Roberts filed an application for renewal of the said leases which were due to expire for a period of 30 years with effect from 1st April, 1978. In January 1987 Miss Marjorie Roberts died, as a result whereof petitioner no. 1 became sole and absolute owner of the Estate of late Radha Nath Roy.

7. According to the petitioners on 29th November, 1988 the impugned notice was issued whereby and whereunder the lease in respect of holding no. 108 was purported to have been renewed for a period of 15 years or till the life time of Miss Marjorie