A lessee has an indefeasible right to have the lease renewed for a further period of 30 years after the expiry of the first period of 30 years, if the lease agreement provides for such renewal.

( 1 ) THIS is a plaintiffs second appeal in a suit for a decree directing the defendants to renew the lease of certain land specified at the foot of the plaint for a further period of 30 years with effect from 10th May, 1972. Although the defendants were three in number, the real defendant is only one, namely, the State of Uttar Pradesh, the other two defendants being surplusage, and indeed the name of the third defendant-respondent Sri N. C. Saxena, Secretary to the Government of uttar Pradesh was deleted from the array of the parties in this Court.

( 2 ) THE earstwhile princely State of Rampur entered into an agreement dated 28th October, 1974 with M/s. Juggi Lal Kamlapat Singhania agreeing to grant certain land on certain terms. The plaintiff company came to acquire the rights of M/s. Juggi Lal Kamlapat under that agreement with certain modifications in a series of transactions which it is not material to detail in this judgment, inasmuch, as the then Government of Rampur made the grant of 39. 08 acres of land to the plaintiff by an instrument dated 29th June, 1949, a copy of which is Ext. 2 on the record. The instrument, after setting forth the earlier transactions shows that the plaintiff company, referred to as the lessee in the agreement "is now in possession of 39. 08 acres and whereas the lessee has requested the lessor (Government of Rampur) to execute the deed of lease in favour of the lessee to which the lessor has agreed, it is hereby mutually agreed and declared as under:--

" (1) That the lease will operate from 10-5-1942 and will terminate on 9th May, 1972. (2) That the said land of 39. 08 acres which is now in possession of the Company will be held by the lessee free of rent during the continuance of this lease.

(3) That it is definitely understood and agreed that all the buildings, bungalows factory, godowns, out-houses, offices and other erections and fixtures whether permanent or temporary, boundary walls, chimmeys, tube-wells, roads trolly lines and other appurtenances constructed by j. K. Gas plant Manufacturing Company Rampur Limited and J. K. Food Products Limited, rampur State now owned and possessed by the Lessee will be deemed to have constructed with the consent of the Lessor and the Lessee has the right to construct other buildings which may be required for the development of the Lessees work.

(4) That the plot leased out will be utilized by the Lessee for its requirements without any interference on the part of the lessor. (5) That the lessee with the consent of the lessor can transfer its lease-hold rights for the unexpired period of lease but the sub-lessee will also be bound by the terms and conditions hereby agreed by the parties.

(6) That on the expiry of the period of lease it can be renewed for a further period of 30 years on the same terms and conditions. After the lapse of 60 years from the date of registration 10th may. 1942 of J. K. Gas plant Manufacturing Company Limited the Company shall have the option to acquire the full ownership of the said land of 39. 08 acres on payment of a sum of Rs. 19,500/- to the lessor.

(7) That the lessee will not commit such acts in respect of the said land which will deteriorate the present value of the land.

(8) That in the event of the lease not being renewed on the expiry of the period of the lease, the lessee will be entitled to sell or remove the buildings, plant, machinery, fittings and fixtures installed thereon unless the State pays to the lessees compensation at a figure to be mutually agreed upon. "

( 3 ) THESE are all the terms of the so-called lease and I have quoted them in extenso because the decision of the case turns upon their interpretation. The few more facts relevant for the purposes of the decision of this case are that when the plaintiff applied for the renewal of the lease to the government of Uttar Pradesh, which had in the meanwhile come to acquire all the rights and the liabilities of the lessor under the said gra