The main point that arises for decision in this case is whether the plaintiff (hereinafter called the lessees) are entitled to the benefits and protection under the Madras Buildings (Lease and Rent Control) Act, 1960 (referred to herein as the Act) as amended by Madras Act (XI of 1964), in respect of a building of a Theatre known as “Odeon Cinema”. This Cinema theatre belonged to two brothers, the first and the second defendant in equal shares and the second defendant, since dead, sold his half share to defendants 3 to 5 under a registered sale deed, dated 14th October, 1966. As certain objections were raised concerning the rights of the plaintiffs to obtain a renewal of the licence under the Madras Cinema Regulations, the Commissioner of Police, has been impleaded as the sixth defendant.

The relevant facts about which there is no serious controversy may be stated. The suit theatre which is now popularly known as “Odeon Cinema” belonged to defendants 1 and 2 and they were exhibiting pictures for several years in that theatre which Was then styled as “ Sagar Talkies” . They had also obtained the requisite licence under the relevant Cinematograph Act, getting the licence renewed periodically. About the period April 1944-45 to April 1952, one Somasundaram Chetty was exhibiting pictures in this theatre either as a lessee or with the leave and licence of the defendants 1 and 2 (hereinafter referred to as defendants). The Sahni brothers, the seniors and elders of the present partners of the plaintiff’s firm Isherdas Sahni & Bros., who were refugees from Punjab negotiated for the lease of the said theatre for a period of five years, the negotiations took some concrete shape and the main terms of the lease Were embodied in an agreement executed by the parties i.e., the defendants and one R. N. Sahni (now dead). This was followed up by a regular lease deed, (with certain changes) Exhibit P-4, dated 3rd May, 1952, executed by the defendants and Karam Chand Sahini (who is also dead) representing the Sahni Brothers. Detailed reference will be made to the terms and conditions of the lease deed. It is sufficient to state at this stage that the lease was for a period of five years upto 30th May, 1957 on a monthly rent of Rs 4, 250 with a right of renewal, at the option of the lessees, for a further period of five years Schedule B appended to the lease deed sets out the various items, machinery electrical machinery, talkie equipment, fittings, furniture and other accessories which Were covered by the lease. The list is fairly exhaustive and detailed and mentions all the items. In paragraph 3-A of the lease deed, it is stated that out of the monthly rent of Rs. 4,250 Rs. 2,000 was to be the rent for the premises and the building, Rs. 1,000 hire for the furniture and Rs. 1250 hire for the machinery, electrical fittings, accessories and the talkie equipment with a specific mention that the lessees wanted’ to take the talkie equipment as a “Standby”. A sum of Rs. 25,000 was paid by the lessees as advance stated to be as security for the articles hired to the lessees and that the advance of Rs. 25,000 shall be adjusted towards the rent and hire for the last six months preceding the termination of the lease. The several sub-clauses in clause 5 contain the lessees covenants. Clause 5 (e) provides that alterations, improvements, additions to the building should be made by the lessees without causing damage to the building and that when they were so made, they would become fixtures of the building and that the lessees would not be entitled to remove them at the termination of the lease, but that the lessors should be entitled to the same without any liability to pay any compensation therefor. Clause (f) provides that the lessees shall take proper care of the furniture and other fittings, machinery talkie equipment and accessories and that if any damage is caused to the same except by reasonable use and Wear, the lessees, shall replace the sam