RAJENDRA KUMAR DHAWAN Vs. NATIONAL INSURANCE COMPANY LTD.

JUDGEMENT

(1.) FACTS of the case as appears from the brief and from the submissions of the learned senior counsels is that the petitioner is the owner of the house let out to the opposite party No. 1 which is a Government of India Company registered under the Company's Act. Basing on the request of the opposite party No. 1 (Company) on 23.03.1998 an agreement was executed between the petitioner and the National Insurance Company Ltd. for letting out of the 1st Floor of the Building situated over the plot No. 794 at Saheed Nagar for opening of Bhubaneswar Divisional Office -II. The period of tenure as agreed was from 23.03.1998 to 23.03.2001 but with a stipulation that the period of tenancy may be extended upto 22.03.2004 on mutual agreement on enhancement of rent @ 15% of the prevailing rate and at the time of execution of the agreement monthly rent was fixed at Rs. 38,208/ - (Rupees Thirty -Eight Thousand Two Hundred Eight only) for an area of 3798 Sq.ft.

(2.) AFTER the expiry of the tenure period, since the opposite parties went on occupying the rented building of the petitioner, the petitioner requested the opposite parties for renewal of the tenancy and on 14.10.2003, petitioner requested the opposite party No. 2 for renewal of the tenancy agreement subject to monthly rent @ Rs. 1,350/ - (Rupees One thousand three hundred fifty only) per Sq.ft. and service charges at appropriate rate.

(3.) AT this stage on 1.11.2004, the opposite party No. 2 intimated the petitioner its consent/approval for the enhancement of the rent of the premises and the rent to be enhanced to Rs. 13.50 paisa per Sqft. The rent for the whole area would be Rs. 51,273/ - per month w.e.f. 24.03.2004 for 6(3+3) years with 15% increase in the rent after every three years with a condition however the release of the same would be subject to execution and registration of the lease agreement again on the condition for sharing stamp duty and registration expenses by 50:50 basis.