MS. SONIA GOKANI, J.- Rule returnable today. Learned advocate Shri Deepak P. Sanchela appears and waives service of notice of rule for respondent no.1. Learned AGP Ms. V.S Pathak appears and waives service of notice of rule for and on behalf of respondent nos. 2 to 4.

2. The petitioner is a public sector undertaking and is a Government company as defined under Section 617 of the Companies Act, 1956. It is engaged in the business of marketing and distribution of petroleum products.

3. The respondent no.1 is a Nagarpalika of Taluka Talaja of District-Bhavnagar. On 16th February 1957, 372 sq. meters of open land was taken on lease by Messrs. Burmah Shell Oil Storage & Distribution of India Limited – predecessor in title of the petitioner from the respondent no.1. This was for running a retail outlet [petrol pump] and the lease continued to be renewed every three years. Thus, the petitioner has been running the retail outlet for more than fifty years.

4. It is the say of the petitioner that the lease was lastly renewed from 15th February 2006 to 14th February 2009 and on 29th May 2009, the respondent no. 1 renewed the lease by a Resolution No. 245 till 14th February 2014. This was communicated to the present petitioner vide letter dated 15th June 2009.

5. It is allegation of the petitioner that on 1st October 2009, the respondent no.2-Collector of the district on suo motu basis, without affording an opportunity to the petitioner, passed an order under Section 258(1) of the Gujarat Municipalities Act, 1963 {“Act” for short} suspending the resolution no. 245. On account of the fact that there was absence of permission of the State Government, as otherwise required under Section 65 (2) of the Act, before renewing the lease. Consequent upon this order, the respondent no.1 issued notices to the petitioner dated 27th October 2009; 24th November 2009; 30th December 2009 and 31st July 2010 inter alia asking the petitioner to hand over the vacant possession of the said land, although there has been no breach in the payment of rent and taxes as demanded by the respondent no.1. It is the say of the petitioner that this is the only retail outlet of Bharat Petroleum in the entire town of Talaja.

6. Civil Suit No. 9 of 2010 was preferred before the learned Addl. Civil Judge, Bhavnagar on 4th January 2010 seeking declaration inter alia that the order passed on 1st October 2009 by the respondent no.2 is illegal, unenforceable and opposed to the principles of natural justice.

7. In an application for injunction, it was urged to direct the respondent not to take over possession of the suit land. After bipartite hearing, application for injunction was rejected essentially on the ground that the petitioner had alternative remedy before the Special Secretary, Government of Gujarat under Section 258 of the Act, as also on the ground that prior permission of the State Government would be necessary under Section 65 (2) of the Act. The Court was also of the view that the cumulative period of lease requires to be considered and not the renewal periods for the purpose of interpreting the provisions of Section 65 (2) of the Act.

8. This was challenged in Civil Misc. Appeal No. 54 of 2010 before the District Court, Bhavnagar and the same was also dismissed vide order dated 3rd May 2011.

Being aggrieved by this, the present petition is preferred under Article 227 of the Constitution of India.

9. It is to be noted that while rejecting the application for injunction, the Court stayed implementation of its order dated 30th June 2011 and in the present petition, this Court vide its order dated 29th June 2011 continued the same by granting the ad interim relief which has been extended till the date.

10. Heard learned sr. advocate Shri Mihir Thakore for M/s. Singhi & Co., appearing for the petitioner-Company who has fervently assailed the orders of both the Courts on the ground that every renewal of the lease is a fresh lease. The interpretation done by both the Cou