ASEA BROWN BOVERI LIMITED Vs. CHIRANJIV LAL SHARMA

JUDGEMENT

(1.) The plaintiff filed the present suit seeking, inter alia, the following reliefs :

(2.) According to the plaintiff he took the suit property on rent for a period of three years w.e.f. 1.5.1979 at the rate of Rs. 2120.60 per month after executing an unregistered indenture of lease dated 1st December, 1979. After the expiry of the period of three years, the plaintiff is entitled for renewal of lease for a further period of three years. Inasmuch as the agreement dated 1st December, 1979 containing renewal clause of the lease constituted an agreement in writing to lease the property in suit, the plaintiff is entitled to claim specific performance of this contract.

(3.) Learned Counsel for the plaintiff contended that the agreement dated 1st December, 1979 amounted to an agreement to lease and as such it could be used as a basis for the present suit for specific performance of contract. Elaborating his arguments, he submitted that the renewal, clause (paragraph 14) of the agreement is really in the nature of an agreement to lease for the renewal periods and such a term/clause is independent of the terms of the main lease deed. It does not create immediately a relationship of between lessor and lessee as this in only a promise to create a relationship of lessor and lessee in future and in this view of the matter, it does not require registration under Section 17 of the Registration Act. He further submitted that assuming that the said agreement requires registration, even then such an un-registered document can be used as a basis for a suit for specific performance of a contract. Reliance has been placed on the decision of the Supreme Court in State of Maharashtra and Others v. Atur India Pvt. Ltd. (1994)2 SCC 497; Delhi Development Authority v. Dugra Chand Kaushish, AIR 1973 SC 2609; Hamda Ammal v. Avadiappa Pathar and Others, (1991)1 SCC 715.