Ramaprasada Rao, J.-The Union of India and the Executive Engineer, C.P.W.D., Madras, who were the defendants in O.S. No. 5383 of 1967 ,Gity Civil Court, Madras, are the appellants. The Andhra Bank Limited, owned premises No. 6, Linghi Chetty Street, Madras-1, which had three floors. The Executive Engineer, C.P.W. D on behalf of the Union of India took on lease the second and the third floors of the above premises from 1st July, 1955 on a monthly rent of Rs. 1,150 and on an increased rent of Rs. 1,500 with effect from 1st July, 1959. Certain fittings and fixtures also formed part of the demise. The tenancy continued without any complexity till 30th June, 1962 by which time, the period of the lease expired. The plaintiffs under Exhibit B-2 made it known that on the expiry of the lease, they were not willing to renew the lease and also put on notice the defendants of the fact that they have not expressed their desire in writing for renewal of the lease as contemplated in the original agreement of lease. Under Exhibit B-2, the plaintiffs also notified the defendants that they were in arrears of rent by then. Under Exhibit B-3 dated 24th December, 1962, the defendants expressed their desire to continue as tenants of the premises in question on the same terms and conditions for a further period of three years. On receipt of this , the plaintiffs through their lawyer and under Exhibit A-1, determined the tenancy of the defendants, as there was no notice in accordance with the terms of the original lease from the defendants requesting for a renewal of the lease for a further term. The defendants were, therefore, called upon to quit and deliver vacant possession. This was followed by another letter Exhibit A-2, which ran as follows:

"9/4016 29th August, 1963.

The Executive Engineer,

Madras Central Division,

C.P.W.D., Madras.

without prejudice.

Dear Sir,

Re: Premises-rent.

With reference to your letter No. 3722-M dated 27th August, 1963, we have to state that the amount of Rs. 7,500 was received without prejudice to our legal adviser’s letter No. 248 of 1963 dated 24th March, 1963, and kept in suspense account —

If you require further lease, we are prepared to renew the lease for a further period of 3 years from 1st April, 1963 on an enhanced rent of Rs. 2,400 per month, at Rs. 40 per 100 sq. ft. The C.P.W.D. pays rent Rs. 45 to Rs. 50 per 100 sq. ft. to our next building "Mysore Bank Building".

Due to high cost of maintenance and increase in local taxes, we were compelled to enhance the rent as above.

"We are not in favour of continuing the lease at Rs. 1,500 p.m. any further. Please treat the master as specially urgent and communicate your acceptance to us immediately.

Yours faithfully, (Sd.)

* *

Manager ".

The plaintiffs made their position clear under Exhibit A-2 that they were not willing to extend the period of the lease and accept the defendants as tenants, unless they were prepared to pay an enhanced rent of Rs. 2,400 per month. They set out the hypothesis under which they have estimated the rent at Rs. 2,400. After an attempt was made by the State Government to requisition the demised property for the use and occupation of the Union Government, which apparently, did not fruition, as is seen from Exhibit B-1, which is a letter from the Collector of Madras to the defendants, the result was that the defendants were continuing impossession of the property after the determination of the lease and after the landlords had made it clear that they should pay an enhanced rent of Rs. 2,400 per month on and after the date of termination of the lease. Ir fact, the plaintiff under Exhibit A-4 requested the Collector of Madras to withdraw the notification issued under the Requisitioning and Acquisition of Immovable Property Act, 1952 and explained in detail their stand that they were willing to further accommodate the Union Government in the premises provided they were prepared to pay either as rent or as damages for use and occupation of the premises at

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