( 1 ) THIS writ petition seeks the setting aside of the order dated 13th November, 2001, passed by respondent, New Delhi Municipal Council (hereinafter referred to as `n. D. M. C. ), holding the petitioner to be unauthorized occupant of the premises in dispute namely that of Chanakya Cinema Complex situated in Diplomatic Enclave, New Delhi (hereinafter referred to as the complex ). Directions have also been sought to set aside the letter dated 22nd January, 2002 issued by the respondent NDMC seeking the vacant and peaceful possession of the aforesaid complex. The writ also partly impugns the Resolution dated 28th August, 2001 to the extent it allows the petitioner to continue in possession from 1st October, 2000 to 30th September, 2003 only. A further prayer is made for renewal of the lease/licence of the petitioner with the usual option for renewing the lease deed on appropriate terms and conditions.

( 2 ) THE crux of the dispute leading to the writ petition arises from the following pleas averred by the petitioner:

(A) on 14th November, 1965, pursuant to the advertisement by the respondent/ndmc for tenders of lease of 1000 seats capacity cinema with attended restaurant and shops, the petitioner partnership firm (later on converted into a private limited company), successfully tendered and secured on lease the said complex. The said lease was executed on 3rd October, 1967. The said lease of 3rd October, 1967 was a subject matter of Civil Suit No. 242 of 1969 and eventually a settlement was arrived at by which licence fee was enhanced by Rs. 50,000/- per annum. This also led to execution of lease/licence agreement between the petitioner and the respondent on 16th September, 1970. The relevant clause of the settlement which contained terms for renewal i. e. Clause 1 read as follows:- "that in consideration of the licence money and the Licencee s agreeing to the covenants hereto, reserved and contained, the said licensors have agreed to grant to the licencee to use the said building with all the fittings fixtures for a term of ten years. The licencee shall, however, have an option to get their licence renewed for another ten years on the terms and conditions to be mutually agreed between the licensor and the licencee at the time of the renewal. "

(B) that against an investment of Rs. 18,00,000/- of the respondent , the petitioner has initially invested Rs. 7,00,000/- and that as per the aforesaid renewal clause, the petitioner exercised the option of renewal on 11th January, 1980 and accordingly the lease was renewed on 23rd September, 1980 for a period of ten years from 1st October, 1980 to 30th September, 1990. In the said lease deed dated 23rd September, 1980, the renewal clause read as follows: "that in consideration of the licence money and the licencees agreeing to the covenants hereto referred and contained, the said licensor has agreed to grant the licence to use the said building with all the fittings, fixtures for a term of ten years. The licencees shall, however, have an option to get their licence renewed for another ten years on the terms and conditions to be mutually agreed between the licensor and the licencee at the time of the renewal. "

(C) reliance was placed upon the resolution dated 25th March, 1981 passed by the respondent/ndmc in respect of renewal of lease/licence which provided for increase of rent by minimum of 10% and maximum of 30% in every renewal. The petitioner has Relied on the fact that thereafter on 18th June, 1985, the enhancement was reduced from 30% to 15%. On 3rd September, 1990 the petitioner had again exercised the option for renewal vide letter addressed to the NDMC. Then on 14th September, 1990 instead of renewing the licence/lease for a period of ten years, the respondent NDMC sought to cancel the licence of the petitioner contrary to the order passed by this Court in CR No. 206/1985 which order read as follows: "that the plaintiff will be entitled to status quo regarding