PANNALAL SAGARMAL Vs. CENTRAL BANK OF INDIA

JUDGEMENT

(1.) THE plaintiff seeks a decree for eviction in this application under Chapter XIIIA of the Rules on the Original Side of this Court.

(2.) IN 1962 the defendant was inducted at premises No. 4, Synagogue street under a registered lease for a period of 21 years commencing April 1, 1963. The lease expired by efflux of time in April, 1984 but the defendant continued in possession with the apparent consent of the landlord. By a letter of November 15, 1985 the defendant bank informed the plaintiff that it desired to enter into an agreement for lease of the said premises for a period of seven years with the option of renewal reserved unto it for two successive periods of seven years each. The defendant proposed that the rent be Rs. 68,992/- per month at the rate of Rs. 11/- per sq. ft for the 6272 sq. ft area with the rate being increased by 15 per cent for either of the two extended periods. No immediate formal agreement was executed but the defendant continued in possession by paying the monthly rent of rs. 68,992/ -.

(3.) THE plaintiff shows documents to establish that the period of seven years expired without the defendant overtly seeking to exercise its option to continue for a further period of seven years. In fact, the plaintiff's demand of April 29, 1991 on the defendant to pay rent at an enhanced rate of 15 per cent in excess of what had been paid for the initial period of seven years after 1984 went unheeded. The defendant says that it tendered rent at the old rate which the plaintiff went on accepting. In March, 1998 the defendant evinced its desire to continue in occupation for a further period of seven years, but the plaintiff complains that the defendant did not offer the increased rent.