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2014 Supreme(Online)(Chh) 155

CHATTISGARH HIGH COURT
Mr. , J
M/s. Pancha Raghou Taank Ramniwas Sarda & Co. – Appellant
Versus
Hindustan Petroleum Corporation Ltd. – Respondent
Civil Appeal No. 15 - A / 2002



Advocates:
For the Appellants/Petitioners: Mr. Sanjay S. Agrawal
For the Respondents: Mr. Pradeep Saxena

Lease renewal requires adherence to specific terms; automatic renewal cannot occur through mere acceptance of rent post-lease expiration.

Headnote:(A) Esso (Acquisition of Undertakings in India) Act, 1974 - Sections 5(2) and 7; Chhattisgarh Accommodation Control Act, 1961 - Section 12 - Eviction suit filed by lessor against lessee; courts below held lease automatically renewed due to acceptance of rent; Supreme Court held there was no renewal as proper notice was not given as required under the Act and lease remained undetermined post-1976 - Tenant classified as trespasser not entitled to protection under Act. (Paras 8, 12, 35, 38)

(B) Renewal of Lease - A lease cannot be deemed renewed merely by acceptance of rent post-termination, when specific contractual terms for renewal were unduly ignored, as per S.116 of the Transfer of Property Act. (Paras 27, 30, 38)

Table of Content
1. substantial question of law raised. (Para 1)
2. background facts of the lease agreement. (Para 2)
3. filing of second appeal. (Para 3)
4. arguments presented by both parties. (Para 4 , 5)
5. court's analysis of lease renewal issues. (Para 6 , 7 , 8)
6. explanation of the esso act, 1974. (Para 9 , 10 , 11 , 12 , 13 , 14)
7. examination of defendant's evidence and claims. (Para 15 , 16 , 17 , 18 , 19 , 20 , 22 , 23)
8. supreme court's guidance on renewal clauses. (Para 24 , 26 , 27)
9. court's conclusions on 'holding over' under t.p. act. (Para 28 , 29 , 30 , 31)
10. discussion on applicability of chhattisgarh accommodation control act. (Para 32 , 33 , 34 , 35)
11. court's findings on defendant's status post-lease termination. (Para 36 , 37)
12. substantial question of law resolved. (Para 38)
13. final judgment issued. (Para 39 , 40)

1. The substantial question of law formulated and to be answered by this Court in this plaintiff' s second appeal is as under:
"Whether both the Courts below are justified in dismissing the plaintiff's suit holding that there is an automatic renewal of lease in favour of defendant ignoring the fact that lease was never renewed under S.5(2) read with S.7(3) of the Esso (Acquisition of Undertakings in India) Act, 1974 (Act No. 4 of 1974) or by the agreement between the parties, by recording a perverse finding"
[For sake of convenience, the parties would be referred hereinafter as per their status shown in the suit before the Trial Court].


2. Sans unnecessary details, the facts which are essential to be stated for the purpose of disposal of the present second appeal are as under:
2.1 M/s. Pancha Raghou Taank Ramniwas Sarda & Co. (a partnership firm) instituted a suit against the defendant - Hindustan Petroleum Corporation Ltd. for eviction and possession of the plot (scheduled suit land) situated at Lalbagh Parisar, Rajnandgaon, admeasuring 200 ft. x 150 ft.= 30,000 sq.ft., part of Khasra No. 239 for the purpose of storing, selling or otherwise carrying on trade in petrol, petroleum products, oil and kindred motor accessories stating inter alia that the scheduled suit land was let out to the defendant on the monthly rent of Rs. 300/-. Tenancy in respect of the said land is monthly commencing from 1st day of each English calendar month and expiring on the last day of same calendar month, which is shown in map, attached with the plaint.
2.2 The description of the scheduled suit land shown in Exhibit - D / 1 states as under:
"THE SCHEDULE ABOVE REFERRED TO
ALL THAT piece or parcel of land measuring 200''x 150''(partly Nazul land) situated at Rajnandgaon Tahsil in Durg District Khasra No. 239 / Part, Patwari Circle No. 37 as described and delineated on the plan annexed hereto and abutted and bounded on the North - G.E. Road,
South)
East) Owners land
and West)
together with the Nazul land situate and lying in front of the service station measuring 200''x 50'' more or less."
2.3 It is further case of the plaintiff that the said suit land was given on lease to the erstwhile M/s. Esso Standard Eastern Inc., which has merged into Hindustan Petroleum Corporation Limited (hereinafter called as 'HPCL' ). It is further pleaded that no such agreement has been entered into after expiry of lease period, but the scheduled suit land has not been vacated, leading to issuance of notice on 21.05.1993, directing the defendant to hand over the peaceful and vacant possession of the scheduled suit land by 31.07.1993, as the suit land is bona fidely required to the plaintiff and further the defendant has let out a part of suit land to sub-tenant, and thus, the plaintiff is entitled for eviction and also damages till the recovery of possession.
2.4 The defendant filed his written statement stating inter alia that M/s. Esso Standard Eastern Inc. was acquired by Central Government and all its rights and liabilities are vested into defendant - Hindustan Petroleum Corporation Ltd. by Esso (Acquisition of Undertakings in India) Act, 1



















































































































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