BAL SAHYOG Vs. UNION OF INDIA

JUDGEMENT

(1.) The present writ petition has been filed by the petitioner aggrieved by the action of the respondents evidenced by their letter dated 09.04.2001 read with letters dated 18.06.2001 and 13.12.2002, whereby the respondents have refused to renew the lease of the petitioner society. The petitioner is a society which was formed in 1954 with the object of rehabilitating destitute children. Its activities centre around providing service and welfare to the needy and poor by conducting welfare and rehabilitation activities, including running of contract clubs, hobby centres, vocational training courses, homes and schools for socially and economically handicapped children, etc. In 1957, the petitioner society was registered under the Societies Registration Act, 1860. The petitioner was located at the premises which it occupies even today in Connaught Circus, New Delhi. The said premises were leased out to the petitioner by a Lease Deed executed on 11.08.1966 on behalf of the President of India for a period of 30 years w.e.f. 01.01.1965. It is the renewal of this lease and another related lease which is the subject matter of the present writ petition. The relevant clause in the lease which relates to renewal is clause 2 (viii) which reads as under:-

(2.) The contention of the petitioner is that by virtue of the aforesaid clause, the petitioner being the lessee was, as a matter of right, entitled to a renewal of the lease for a further period of 30 years. Only the terms and conditions were to be mutually agreed upon before renewal of the lease. On the other hand, the respondents contend that the renewal of the lease was not automatic and even renewal had to be mutually agreed upon before the lease could be renewed. This is the short question which needs to be decided in this writ petition.

(3.) It needs to be pointed out at the outset that the said lease is not an ordinary lease and as mentioned in clause 7 thereof itself, the said lease has been granted under the Government Grants Act, 1895. As such, the said lease is a Government Grant and has to be construed as such.