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2025 Supreme(Telangana) 2061

IN THE HIGH COURT OF JUDICATURE FOR THE STATE OF TELANGANA
NAGESH BHEEMAPAKA, J.
Gummadi Yadi Reddy - Petitioner
Versus 
Union Of India, Rep. By Its Under-Secretary, Petroleum and Natural Gas,
Ministry Of Petroleum And Natural Gas, New Delhi And Others - Respondents
WRIT PETITION No. 12657 OF 2025
Decided On : 30-12-2025

Advocates:
Advocate Appeared:
For the Appellant : Chandrashekhar Reddy Gummadi
For the Respondent: N Bhujanga Rao Deputy Solicitor General Of India

The court held that disputes related to lease tenure interpretation require detailed examination in civil courts and are not suitable for resolution under writ jurisdiction.

Headnote:(A) Constitution of India - Article 226 - Rental Agreements - Disputed lease tenure of property under a Lease Deed dated 21.03.2005- Petitioner claims lease expired on 21.03.2025; Respondents claim it extends to March 2030. Court found lease disputes require detailed investigation beyond its jurisdiction. Petitioner contended unlawful possession infringed property rights guaranteed under Article 300A, but Respondents claimed rightful possession under the Lease Deed. (Paras 2.4, 6, 10, 11)

(B) Jurisdiction - Writ court jurisdiction is limited primarily to public law issues; contractual disputes over lease require resolution in civil court. (Paras 10, 11)

(C) Legal principle - Contract interpretation requires comprehensive examination encompassing all lease terms, correspondence, and conduct of parties, not isolated clauses. (Paras 8, 9)

Facts of the case:
Petitioner filed a writ petition challenging the retention of leased property by Respondents after the lease expired, asserting ownership. Respondents contended the lease extends beyond the alleged termination.

Findings of Court:
The dispute on lease tenure necessitates an examination best suited for civil courts, thus declining writ jurisdiction.

Issues: Whether the lease tenure ended in March 2025 or continued till March 2030; interpretation of Lease Deed.

Ratio Decidendi: Writ courts should not handle contractual disputes that require evidentiary resolution; such matters must be settled in civil courts.

Result: Writ Petition dismissed.

Table of Content
1. petitioner claims unlawful occupation after lease expiry. (Para 1 , 2)
2. respondents assert valid lease tenure contrary to petitioner's claims. (Para 3)
3. petitioner counters respondents' claims regarding lease duration and renewal. (Para 4)
4. court recognizes the need for detailed contractual interpretation by civil court. (Para 5 , 6 , 7 , 8 , 9 , 10 , 11)
5. writ petition dismissed; issues left open for civil court. (Para 12 , 13)

ORDER :

NAGESH BHEEMAPAKA, J.

This writ petition is filed aggrieved by the continued occupation and retention of physical possession of petition schedule property admeasuring 2500 square yards in Survey No. 101/A/6/1/A situated at Katedhan Village, Rajendranagar Mandal, Ranga Reddy District by Respondents 2 and 3, pursuant to a registered Lease Deed dated 21.03.2005, despite expiry of lease period by efflux of time on 21.03.2025.

2. The grievance of Petitioner is that even after issuance of repeated representations and legal notices dated 24.01.2024, 05.09.2024, 23.12.2024 and a further representation dated 11.03.2025, Respondent – Indian Oil Corporation failed to vacate the leased premises, failed to remove its movable installations and continues to occupy the property unlawfully, thereby depriving Petitioner of his right to property guaranteed under Article 300A of the Constitution.

2.1. Petitioner contends that he is the absolute owner of the petition schedule property having lawfully acquired the same under a registered sale deed bearing Document No.5161 of 2003 and his name was mutated in the revenue records and other relevant records maintained by the competent authorities, and that he has been in peaceful ownership and enjoyment of the said property. In his capacity as owner, he executed a registered Lease Deed dated 21.03.2005 in favour of IBP Company Limited, a Government of India undertaking, leasing out the said land for the specific purpose of establishing, erecting, and operating a petrol and high speed diesel retail outlet, servicing and lubricating station, and for storage and use of petroleum products under the name and style of "GYS Reddy Filling Station." The lease included permission to install canopies, underground tanks, dispensing units, plant and machinery, and other movable installations necessary for the said commercial activity.

2.2. It is the specific and emphatic case of Petitioner that under the terms and recitals of the registered Lease Deed, lease tenure was expressly fixed for a period of 20 years commencing from 21.03.2005 and expiring by efflux of time on 21.03.2025. The Lease Deed provided only an option for renewal for a further period of five years, subject to mutual consent and agreement of both the parties, and that such renewal was neither automatic nor unilateral. According to Petitioner, renewal clause was entirely dependent upon the willingness and consent of the lessor, and the lessee had no vested or enforceable right to claim extension as a matter of course.

2.3. It is asserted that petitioner has unequivocally expressed his unwillingness to renew or extend the lease beyond the agreed period of 20 years and that he has, well in advance of the expiry of the lease, issued repeated representations and legal notices calling upon the lessee to vacate the leased premises and hand over peaceful physical possession upon expiry of lease term. Petitioner issued notices dated 24.01.2024, 05.09.2024 and 23.12 2024, followed by representation dated 11.03.2025 and a statutory notice under Section 80 of the Code of Civil Procedure, clearly communicating his intention not to renew the lease and demanding surrender of possession. IBP Company Limited was subsequently merged with and taken over by Indian Oil Corporation Limited, a Government of India undertaking, and that Respondents 2 and 3 stepped into the shoes of the original lessee and continued operations under the same lease and on the same terms and conditions. Such merger or takeover does not in any

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