[1] We had earlier heard the appeal of YT Marketing Sdn Bhd ("the appellant") against the decision of the High Court Shah Alam dated the 8 August 2011. By its decision the High Court dismissed the appellant's claim for payment of double rental of premises owned by the appellant and occupied by Tan Whye Kion and Ong Bee Bee trading as Heads Unisex Saloon ("the respondents") as tenants.

[2] We allowed the appeal. These are our reasons for doing so.

The Facts

[3] The appellant is the registered owner of a four storey building at No 36, Lorong Gopeng, Klang. It let out the Ground Floor of the building (the demised premises) to the respondents under a Tenancy Agreement ("tenancy agreement") dated 11 May 1992.

[4] The term of the tenancy of the demised premises was for three years commencing from 1 June 1992 and expiring on 31 March 1995.

[5] The tenancy agreement contained an option clause to renew the tenancy for a further two years from 1 Apr