PUNJAB NATIONAL BANK BODY CORPORATE CONSTITUTED UNDER THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT, 1970 HAVING ITS HEAD OFFICE AT 7, BHIKHAIJI CAMA PLACE, NEW DELHI Vs. SETHULAKSHMI BASHI, AGED 52 YEARS, W/O. DR. V.V.BASHI, CHINGANEZHATH HOUSE, V.R.MENON ROAD, RAVIPURAM, KOCHI

JUDGEMENT

(1.) The tenant of a non residential premises seeks renewal of lease by specific performance notwithstanding that the covenant as regards the renewal of lease is uncertain and ambiguous.

(2.) The tenanted premises is the ground floor of a two storied building having plinth area of 5000 sq. ft. on the Mahatma Gandhi Road, Ernakulam belonging to the appellants and occupied by the respondent bank. The premises was first demised to the respondent by Ext.B1 lease deed (Document No.5029/1981) and the lease was being renewed from time to time and Ext.A1 lease deed (Document No.1097/2003) was the last one executed. Ext.A1 lease deed executed on 5.3.2003 was given retrospective operation with effect from 1.4.2002 as per the terms thereof and the period of the lease expired 10 years after on 31.03.2012. The rent payable was Rs. 51,000.00 per month and the relevant clause in Ext.A1 lease deed relied on in support of the plea for renewal of lease is extracted below:

(3.) The respondent even before the expiry of the period of lease issued Ext.A2 letter dated 25.8.2011 exercising its option to remain in possession agreeing to execute a fresh lease deed. The same was replied to by Ext.A3 letter dated 8.11.2011 issued by the first appellant expressing willingness to execute a fresh lease deed for a period of three years. It was however indicated therein that the rent fixed for the earlier period was meagre and that the same is liable to be enhanced on comparable standards. The respondent thereupon issued Ext.B3 letter dated 21.2.2012 stating that the renewal of the lease for a period of three years only is not acceptable. The respondent emphasised that the lease has to be renewed preferably for a period of 15 years and that there can be a maximum enhancement of 25% in the rental. The letter also cautioned that the negotiation for renewal of the lease has to be concluded at the earliest as sanction for rent with retrospective effect is difficult.