SHANTI PRASAD DEVI Vs. SHANKAR MAHTO

JUDGEMENT

(1.) The appellant obtained possession on lease of the suit premises for running a Petrol Pump under a registered lease deed dated 17-7-1962 for a period of fifteen years. It was an annual lease but the rent at agreed rate was payable in monthly instalments. The period of lease expired on 17-7-1977.

(2.) The registered sale deed contained clauses Nos. (7) and (9) giving option of renewal for a further period which could be exercised before expiry of the initial period. After the period of lease expired on 19-7-1977 the lessee continued to remit the rent till August 19, 1977. On 23-8-1977 the lessee sent a lawyers notice exercising his option under clause (7) and seeking renewal of the lease. The lessee thereafter remitted monthly rent of Rs. 345/- each for three months from March to May 1978. The rent was accepted by the lessor.

(3.) Clause (7) of the lease providing option of renewal to the lessee contained two conditions firstly that the option has to be exercised before expiry of the lease and secondly the terms and conditions of renewal for further period shall be decided either by mutual consent of parties or in case of failure of mutual consent, through the intervention of local Mukhia or Panchas of the village.