JUDGMENT

I.P. Mukerji, J.—Facts:

The first appellant is the successor-in-interest of Chartered Bank of India, Australia and China. The latter on 12th December, 1905 obtained by a deed of lease commencing from 12th February, 1906 for 100 years from one Maharaj Adhiraj Bijoy Chand Mahtab Bahadoorof Burdwan, a property measuring 3 bighas, 9 cottahs, 18 chittacks, what is now, premises No. 4, Netaji Subhas Road, Kolkata – 700001. The respondents are the successors of the Maharaj. By two supplementary leases executed on 20th April, 1927 and 31st December, 1934 some addition was made to the demised land and the obligation to pay municipal taxes was spelled out, while maintaining the terms and conditions of the original lease.

2. The renewal clause in the lease is of paramount importance in this matter. It provided that the lessee had the option, on the expiry of the original lease, to take a fresh lease of another 100 years only, at a yearly rent of Rs.3,700/- and a monthly rent which would be “1/ 12th of 71/2 % of the value of the property on the commencement of the renewed lease except the value of the private lane or road and the buildings standing on it.”

3. In terms of the covenants