The exercise of an option for renewal under Section 5(2) of the Burmah Shell (Acquisition of Undertakings in India) Act, 1976 does not automatically renew the lease for a further period of 20 years. The execution and registration of a fresh lease deed are necessary for the renewal of the lease in accordance with Section 107 of the Transfer of Property Act, 1882.

The defendant Bharat Petroleum Corporation Limited is the appellant in this Second Appeal against the judgment and decree granted by the Courts below for possession of the suit property in favour of the respondent plaintiff.

2. Only a short point is involved in this second appeal and the arguments of both the learned Counsel were heard.

2A.The case of the plaintiffs in brief, is as follows:- The defendant is tenants at sufference in respect of the suit property on a monthly rent of Rs. 1,100/-. The plaintiffs grandfather entered into a registered lease deed on 16-3-1964 with Burmah Shell Oil Storage and Distributing Company of India Ltd., for a period of 20 years from 1-4-1963 till 31-3-1983. Subsequently, the said company became Government of India undertaking with effect from 1976. By efflux of time, the lease came to an end on 31-3-1983. The above said plaintiffs grandfather sold the suit property on 21-5-1972 in favour of the plaintiff and the lessee attorned the tenancy to the plaintiff. The plaintiff was not willing to renew the lease in favour of the defendant and he is entitled to get possession of the property. There is a shed in the suit property and it is worth not even Rs. 2,000/-. The defendant is liable to remove the said superstructure put up by it and deliver vacant possession.

3. The case of the defendant is that it is in occupation of the property in pursuance of the above said lease deed and the defendant is entitled to renew the said lease under Sections 5 and 7, Burma Shell (Acquisition of Undertakings in India) Act, 1976 and the defendant has exercised the said right of renewal as early as 9-2-1983 for another 20 years (under Ex. B-1). Therefore, the plaintiff is not entitled to terminate the lease. The defendant has petrol bunk, H.S.D. pumps, underground tanks and other fittings for storage of petrol and H.S.D. Oil and these pucca superstructures were constructed by the defendant at a huge cost. Under Section 9 of the City Tenants protection Act, the defendant is entitled to purchase the property and it had filed I.A. No. 14462 of 1995 in the suit seeking purchase the said property.

3A. When the above said I.A. No. 14462 of 1985 was taken up for enquiry, the defendant made an endorsement that it was not pressing the said I.A. and hence it was dismissed. Therefore, it has to be seen whether the defendant has right under the above said enactment for renewal of the lease. No doubt, incidentally it has also to be seen whether the defendant has duly exercised the option for renewal. It may also to be stated here that the Ex. B-1 letter of the defendant dated 9-2-1993. In Ex. A-1 (dated 8-4-1983), the plaintiff stated that he was not willing to renew the lease, and he called upon the defendant to hand over possession immediately.

4. It must be noted that the defendant, pursuant to exercising the above said option to get renewal, under Ex. B-1, did not take any further action to get a fresh lease deed executed and registered.

5. Now, the question is whether pursuant to the above said Act, the defendant has secured automatic renewal of the lease, despite the non-execution and non-registration of a fresh lease deed for a fresh period of 20 years on the expiry of the original lease for 20 years, which expired on 31-3-1983. Learned counsel for the respondent also argues that the above said option itself was not properly exercised by Ex. B-1. So, incidentally that question also has to be gone into.

6. I shall first dispose of the above referred to latter incidental question. In considering this incidental question (as well as the main question) the relevant provisions of the above said Act, by which the erstwhile Burma Shell Oil Storage and Distributing Company of India Limited (which is referred to as "Burmah Shell" in the above said Act pursuant to Section 2(b) therein was taken over on the appointed day, viz., 24-1-1975 by the Central Government, have to be seen. It may also be stated that after the above sa