There becomes automatic termination of lease after expiry of period of lease.

Markandey Katju, CJ.

This writ appeal has been filed against the interim order of the learned single Judge dated 08.11.2004.

2. We have heard the learned counsel for the parties, and have perused the records.

3. The petitioner/appellant is a Public Limited Company having its registered office at Dhrangadara, Gujarat, and is carrying on the business of manufacturing and selling chemicals and production of salt for industrial and domestic purposes in the State of Gujarat and Tamil Nadu.

4. The State of Tamil Nadu had originally leased out a vast area of land to M/s. Wimco Limited measuring 28,765 acres of swamp and poromboke lands in Vedaranyam Taluk, Nagapattinam District and Thiruthuraipoondi Taluk, Thanjavur District by G.O.Ms.No.625, Revenue, dated 14.2.1963. The lease was for a period of 40 years commencing from 1963 and ending in 2003 for the purpose of manufacture of salt for use in the factory to be set up. M/s.Wimco Limited surrendered a major portion of the land of 16,500 acres to the first respondent. Thereafter, by a G.O, the first respondent ordered resumption of unutilised land measuring 9044.47 acres leaving a balance of 3185.53 acres for utilization by M/s.Wimco Limited for setting up of a factory for the manufacture of salt and its by-products. Since M/s. Wimco Limited found its enterprise not giving adequate income it had sought permission of the first respondent/State of Tamil Nadu for transferring the leasehold rights over the salt lands to the petitioner herein. M/s.Wimco Limited filed an application in the year 1990 requesting the first respondent to consider its request for transfer of its leasehold rights over the salt lands in favour of the petitioner herein. The first respondent by G.O.Ms.No.603, Revenue, dated 15.4.1991 permitted the petitioner, a major producer of salt, to take over the leasehold rights and passed the following order: -

“ (i) The Government permits M/s.Wimco Limited to transfer the lease hold rights in favour of M/s.DCW Limited with effect from 1.4.91 for the same purpose of manufacture of salt and its by-products, subject to the specific condition that M/s.Dharangadhara Chemical Works Limited should enter into a fresh lease agreement with the Government from the above said date.

(ii) The Government also directed that the above lease is subject to the general conditions laid down under R S O 23-A and that the lease should be for the initial period of 12 years as per the orders issued in G.O.Ms.No.1106, per acre per annum and royalty ofRs.1/- per tonne of salt produced subject to a minimum of Rs.25/- per acre per annum as per G.O.Ms.No.1075, Revenue, dated 22.6.82.

(iii)The Collector of Thanjavur District is requested to act upon the above orders of the Government and also furnish a copy of the lease agreement referred to in para-4 above.

5. Pursuant to the above G.O, leasehold rights was transferred in favour of the petitioner from M/s.Wimco Limited. The first respondent fixed the period of lease as 12 years as per the orders issued in G.O.Ms.No.1106, Revenue, dated 13.6.88 and the lease rent was fixed at Rs.2/- per acre per annum and the maximum royalty was fixed at Rs.25/- per acre per annum. Pursuant to the aforesaid G.O.Ms.No.603 dated 15.4.1991 the State Government permitted the transfer of the leasehold rights from M/s.Wimco Limited to the petitioner, and an Indenture of Lease dated 13th May 1991 was executed between the State of Tamil Nadu/first respondent and the petitioner covering 3185.53 acres of land in Vedaranyam Taluk under Survey No.193 at village Kandinavayal, Survey No.143 at village Ayakkarambulam and Survey Zno.193 at Village Pannal. In terms of the decision of the Government in G.O.Ms.No.1106 dated 18th June 1998, the said lease was to be valid for a period of 12 years expiring on 31st March 2003.

6. It is alleged in paragraph-13 of the petitioner’s affidavit that on the basis of the indenture dated 13th May 1991, the petitioner started its activity of manufact