The discretion of a landlord in rent fixation and renewal terms is valid, and tenants must adhere to clearly established lease terms, particularly when challenged during eviction proceedings.

JUDGMENT :

CHAITALI CHATTERJEE DAS, J.

1. This revisional application is directed against the judgement dated March 7, 2024 passed by Learned Judge Bench-V, City, Civil Court at Calcutta in. Misc. Appeal number 23 of 2015. The fact of the case in short is that:

a) The petitioner No.1/Applicant has inducted as a tenant in respect of one shop room, including attached go-down on the ground floor at Laxmi Insurance building, the premises No.7, Esplanade East, Kolkata – 700069 since April 1992.In terms of the deed of lease, the petitioners above named initially had paid the lease rent at the rate of Rs. 1100 per month to the Life Insurance Corporation of India, i.e the Opposite Party herein.

b) The said lease expired on 31st March, 1995, and it was renewed for a further term of 3 years with effect from April 1, 1995 at a monthly rent of Rs. 1375 i.e 25% enhancement over the existing rent of Rs. 1100/. Accordingly, a fresh deed of lease was executed on the same terms and condition and after it expired on March 31, 1998 a further fresh lease was executed with the enhancement of rent of 25% over the existing rent of Rs. 1375.

c) In the deed of lease of 1992, it was recorded that the said lease will be renewed every three years and on renewal, the monthly rent bill shall be enhanced at the rate of 25% of the existing rent and accordingly the present petitioners were paying the enhanced rate of rent pursuant to the terms of the agreement renewed after every three years.

d) By a deed of lease dated 12 January 1999, the monthly rent was enhanced to Rs. 3900 with effect from April 1, 1998, with condition that on the expiry of the lease on 31st of March, 2001, the renewal for further period of three years will be granted upon enhancement of lease rent by 25% on the existing rent only on the ground that the municipal tax, repairing and maintenance cost and other allied expenditures of the said premises have been increased.

e) The present petitioners before the expiry of the said lease on 31.3.2001 by a letter dated January 10, 2001, requested the LIC to renew the said lease for a further period of three years with effect from first April, 2001 in terms of the lease dated 12 January 1999. On August 10, 2001 the petitioners also met with the Estate Manager with a request for renewal upon enhancement of monthly rent by 25% over the existing rent of Rs. 3900 pursuant to a letter dated April 10, 2001 of the LIC with a request to meet the Estate manager for discussion and amicable settlement of revision of rent and execution of lease deed. It was informed to them that the fact of such meeting will be informed after discussion with their committee. In the meantime, they were allowed to pay their monthly rent for the subsequent months at the same rate of Rs. 3900 per month.

f) Accordingly the petitioners paid such monthly rent for the month of April, May, June and July 2001 at the rate of Rs. 3900, which was duly accepted by the LIC, issuing rent receipts to the petitioners. However, the LIC deferred the execution of the renewal of lease of deed, despite repeated request made by the petitioners and the Estate manager.

g) All on sudden by a letter dated August 24, 2001, the petitioners were informed by the LIC about proposing enhancement of monthly rent at the rate of Rs.