Honble Justice B D Ahmed | Delhi High Court | Bal Sahyog vs Union Of India (Uoi) And Anr. on 14 October, 2003

……it is clear that the renewal clauses in the present leases clearly stipulate that the lessee shall be entitled to a renewal of the lease for a further period…..This clearly indicates that the petitioner was by the terms of lease entitled to a renewal for a further period. The second portion of the clauses which says “all terms and conditions to be mutually agreed upon before renewal of lease” only refers to the terms and conditions. As a matter of right, the petitioner was entitled to renewal. The only thing that was left to be considered were the terms and conditions thereof which were to be mutually agreed upon before renewal of the lease. The respondents neither expressed any terms and conditions contrary to the earlier leases nor did they “agree” to the renewal. In fact, it was not for the respondents to agree or disagree. Once, the petitioner exercised its option calling for renewal, there was no option left with the Respondents but to renew the leases for the further period. ……… In these circumstances, the letters of the respondents refusing to renew the leases in favor of the petitioner and in requiring the petitioner to vacate the premises in question are illegal and are hereby set aside and quashed. The respondents are directed to, within a period of sixty (60) days from the date of this judgment, execute fresh leases in favor of the petitioner for the period opted by the petitioner