The Court has the power to settle the rent payable when the parties could not mutually agree on the basis of the renewal clause contained in the lease.

Ajit Kumar Sengupta, J.

1. The short question which calls for determination in this interlocutory application is that whether the Court can fix the rent of the premises which is governed by the provisions of West Bengal Premise Tenancy Act, 1956.

2. Shortly stated the facts are that Martin Burn Limited instituted a suit against the Steel Authority of India Limited (hereinafter referred to as the SAIL) praying for a decree for adjudication determination and settlement of the monthly amount for occupation of the fourth and fifth floor of the premises No.1, R.N. Mukherjee Road, Calcutta from 21.2.1987 till 20.8.1989, interest and cost.

3. The case of the plaintiff is that by a registered deed of lease dated 16.8.1974 demised in favour of one Shresth Agencies Private Limited the entire 3rd, 4th and 5th floors of the said premises for a period or 5 years commencing from 21.8.1974 with option for renewal for three successive terms of 5 years each provided the notice of intention to obtain such renewal was given three months before the expiration of the said lease and also three months before the expiration of each of the first two renewed periods. Under the said Deed of Lease, Shresth Agencies Private Limited was given the right to create sub-lease.

4. The Shresth Agencies Private Limited before the expiry of the first period of 5 years gave notice of his intention to exercise option for renewal in terms of the said lease for further period of 5 years and, accordingly, the said Deed of Lease stood extended and/or renewed till 20.8.1984.

5. Before the expiry of the First term of renewal Shresth Agencies Private Limited again gave notice of its intention to renew the lease for second terms of renewal for five years in terms the said Deed of Lease and, accordingly the said Deed of Lease stood renewed and/or extended till 20.8.1989.

6. On or about 30.10.1986 the said Shresth Agencies Private Limited surrendered the Lease to the petitioner and made over actual possession of the third floor of the said premises and issued a Letter of Attornement dated 29.10.1986 addressed to the defendant with direction upon the defendant, who had been permitted by Shresth Agency Pvt. Ltd., to occupy the 4th and 5th floors of the said premises to attorn and pay the rent and all other charges to the petitioner directly on and from 1.11.1986.

7. At the time of surrender of the lease Shresth Agencies Private Limited represented to the petitioner that they had entered into an agreement for sub-lease with the defendant which Shresth Agencies had agreed to grant and the defendant agreed to obtain sub-lease of the 4th and 5th floors of the said premises on the terms and conditions mentioned in the letter dated 12/13.2.1981 written by the defendant to Messrs Shresth Agencies Pvt. Ltd.

8. From the said letter dated 12/13.2.1981, it appears that the defendant had entered into an agreement with Shresth Agencies Pvt. Ltd., for obtaining sub-lease of the entire 4th and 5th floors of the said premises measuring 40304 square feet on the following terms and conditions.

(a) Monthly rental will be at the rate of Rs. 4.75 paise per square fit.

(b) The defendant will make an interest free Security Deposit with Shresth Agencies Pvt. Ltd., and the said Security deposit will be adjusted against the amount for the last four months of the tenancy.

(c) The deed of Lease containing the terms and conditions as negotiated and finalized will be executed as per the draft enclosed with the said letter.

9. The said letter dated 12/13.2.1981 also lays down the condition that a defendant would give a loan of Rs. 24,00,000/- to Shresth Agencies Private Ltd., but the plaintiff was informed by the Shresth Agencies Private Ltd. that no such loan was actually given by the defendant.

10. From the draft deed of Lease enclosed with the said letter dated 12/13.2.1981, it transpires amongst other that the Agreement between Shresth Agencies Private Ltd. and defendant provided for grant of a sub-lease f