1. The Appellants are the owners of the building known as 'Nalanda' situate at Plot No. 28, Samant Estate, Goregaon (E), Mumbai. By the deed of Lease dated 3-9-1984, the appellants (hereinafter be referred as 'lessors') leased out second floor of the said building admeasuring about 2540 sq. ft. to the President of India for the purposes of Bombay Telephones (the lessee) on a monthly rent of Rs.10,160/- and the service amenity charges of Rs.3,810/-. The said lease was for a period of three years effective from 8-8-1983 with a renewal clause allowing lessee to seek renewal for a further period of three years. The lease provided that the lease of premises may mutually be renewed for a term of three years on the same terms and conditions including the rate of compensation and service amenity charges. The lease further provided that after the expiry of six years lease period, if a further renewal is required by the lessee and notice of such intention by the lessee is given at least three months before the expiration of lease, the lessors and the lessee shall mutually decide the compensation, amenity and service charges on the basis of the rate and situation then existing and other condi