( 1 ) THE respondent, New Delhi Municipal council (hereinafter referred to as `the NDMC ) is having land/site of about 13 acres in Chanakyapuri, New Delhi. In the year 1965, two projects were envisaged thereon, namely, (i) construction of an air-conditioned 11 storeyed (in addition to two basements) 212 rooms five star hotel and (ii) 1000 seats capacity cinema fully air- conditioned with a large restaurant and a number of shops in the premises. Sealed tenders were invited vide NIT dated 14th November, 1965 to grant lease in respect of these two projects described as `tender for hotel and `tender for cinema . The appellants were the successful bidder for the cinema and this culminated into the execution of the licence agreement dated 3rd October, 1967 between the parties whereby the appellants were granted licence to use the proposed building housing a cinema, which was to be constructed by the NDMC, with all the fittings and fixtures for a term of 10 years. The agreement provided renewal clause whereby option was given to the appellants to get the licence renewed for another 10 years `on the terms and conditions to be mutually agreed between the parties at the time