VALMIKI J. MEHTA, J.

Caveat No.19/2018

1. Counsel appears for the caveators. Caveat accordingly stands discharged.

C.M. No.1300/2018 (exemption)

2. Exemption allowed subject to just exceptions.

C.M. stands disposed of.

RFA No.30/2018 and C.M. No. 1299/2018

3. This Regular First Appeal under Section 96 of Code of Civil Procedure, 1908 (CPC) is filed by the defendant in the suit impugning the judgment of the Trial Court dated 8.11.2017 whereby the trial court has decreed the suit for possession and mesne profits filed by the respondents/plaintiffs/landlords. The suit property is the ground floor portion of the property bearing no. 484, Block-S, Greater Kailash-II, New Delhi situated on a plot of 550 sq. yards.

4. I need not set in detail the respective cases of the parties on merits as per their pleadings because the admitted position is that a registered lease deed dated 17.5.2002 was entered into between the respondents/landlords/plaintiffs and the appellant/defendant. The lease period under this lease deed dated 17.5.2002 was a period of 10 years commencing from 15.5.2002. In terms of the registered lease deed, the appellant/defendant was entitled to renew the lease for two successive terms of 10 years each commencing from 15.5.2012 and 15.5.2022. For this renewal periods even the rate of rent which was payable was specified. The relevant clause of the lease dated 17.5.2002 is clause 2C and this clause 2C reads as under:-

“2C. The said Lease shall come into force and shall be effective for a period of 10 years from 15th May 2002 provided that the monthly rental will become payable upon extension of Load to 40 KVA and conversion of electricity connection to three phase connection and compliance of all the terms and conditions of the Lessees Letter of Intent dated March 6, 2002 and completion of all refurbishment of the demised premises making it fit for transacting business of banking from the demised premises. The said period of 10 years for the sake of brevity is hereinafter referred to as the ‘period of lease’. The Lessee shall have the sole and absolute right to renew the Lease for further two successive terms of ten years each commencing from 15th May 2012 to 14th May 2022 and thereafter for a further period of ten years commencing from 15th May 2022 to 14th May 2032. Unless the Lessee gives a written notice terminating the Lease and/or three months prior to expiry of the initial Lease it shall be deemed and construed that the Lease stands renewed for a further period of ten years (‘the renewed period of lease’) as per above.

The Lessors and the Lessee hereby agree that on renewal of Lease.

A fresh Lease Deed shall be executed and registered by and between the parties;

The terms and conditions as agreed herein and in the Letter of Intent dated March 6, 2002 agreed to by both parties hereby shall remain applicable for the renewed period of the lease;

The Lessors shall be bound to renew the lease without raising any objection, protest or demur in connection therewith;

The right of first refusal in respect of renewal of the lease shall lie only with the Lessee;

The rental payable for the renewed period of Lease i.e. from 15th May 2012 to 14th May 2022 shall be as under :

Sr. No.	Period From To	No. of Years	Escalation @ Amount (Rs.)	Monthly Lease Rent payable (Rs.)
1.	2012 2014	2		345,600/-
2.	2014 2017	3	20% 69,120/-	414,720/-
3.	2017 2020	3	20% 82,944/-	497,664/-
4.	2020 2022	2	20% 99,533/-	597,197/-

The rental payable for the renewed period of Lease i.e. from 15th May 2022 to 14th May 2032 shall be as under :

Sr. No.	Period From To	No. of Years	Escalation	Monthly Lease Rent payable (Rs.)
1.	2022 2023	1	-	597,197/-
2.	2023 2026	3	20% 119,439/-	716,636/-
3.	2026 2029	3	20% 143,327/-	859,963/-
4.	2029 2032	3	20% 171,993/-	10,31,956/-

The mon