IN THE HIGH COURT OF JUDICATURE AT MADRAS
R.SUBRAMANIAN, C.KUMARAPPAN, JJ
Indian Oil Corporation Limited – Appellant
Versus
Mr.D.Senthil Kumar Rep. by Power Agent Mrs.D.Selvam – Respondent
| Table of Content |
|---|
| 1. failure of payment invalidates lease terms. (Para 2 , 3 , 4) |
| 2. court's determination of lease validity based on agreement. (Para 5 , 7) |
| 3. court's reasoning against perpetual lease established. (Para 9 , 11 , 12 , 13) |
C O M M O N J U D G M E N T
[Judgment of the Court was delivered by R.SUBRAMANIAN, J The parties will be referred to as per their ranks for the purpose of convenience.
2. The respondents 1 to 8 filed a suit seeking a declaration that there is no renewal of the lease beyond 31.12.2009 as the right to renew conferred on the defendant has become nugatory on account of non-payment of the renegotiated rent and for eviction. The plaintiffs contended that the suit property was leased to the appellant to run a Petroleum outlet under a lease deed dated 27.02.1995 by one Rajagopal, who died on 12.09.2006. The plaintiffs are the legal heirs of said Rajagopal. The lease was for a period of 20 years commencing from 01.01.1989. The initial rent was Rs.4,500/- and it was subsequently enhanced to Rs.5,400/- for the second 5 years, to Rs.6,750/-
for the third 5 years and Rs.8,440/- for the last 5 years. As per the conditions in the lease deed, the lease can be terminate
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