9911796707
TMI Blog2005 (7) TMI 673X X X X Extracts X X X X X X X X Extracts X X X X ..... agreed rate was payable in monthly installments. The period of lease expired on 17.7.1977. 2. The registered sale deed contained clauses Nos. (7) & (9) giving option of renewal for a further period which could be exercised before expiry of the initial period. After the period of lease expired on 19.7.1977 the lessee continued to remit the rent till August 19, 1977. On 23.8.1977 the lessee sent a lawyer's notice exercising his option under clause (7) and seeking renewal of the lease. The lessee thereafter remitted monthly rent of Rs. 345/- each for three months from March to May 1978. The rent was accepted by the lessor. 3. Clause (7) of the lease providing option of renewal to the lessee contained two conditions firstly that the option ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. 8. The trial court by the common judgment dismissed the counter suit seeking specific performance of renewal of lease by the lessee. It was held that in accordance with clause (9) of the lease deed, the option of renewal was not exercised before expiry of original period. The specific performance of agreement of renewal claimed was also rejected on the ground that the terms and conditions of renewal were vague and incapable of enforcement. Thus, the trial court dismissed both the suits. 9. The dismissal of two suits by the trial court gave rise to two cross appeals one at the instance of lessor and the other at the instance of lessee. The first appellate court allowed the appeal of the lessor and decreed the suit of ejectment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reed that conditions stipulated for the renewed period of lease were vague and incapable of specific enforcement. Thus the dismissal of suit of the lessee for specific performance of contract of renewal of lease was also upheld. 13. Having thus lost her case in the courts below, the lessee has approached this Court in these two appeals. 14. Learned Senior Counsel Shri S. B. Sanyal reiterated the legal stand taken by the lessee in the courts below. It is contended that on expiry of original period of lease, acceptance of rent for the month of August and from March 1978 to May 1978 clearly showed an 'assent' on the part of the lessor to continue the lease. There was deemed renewal of the lease on the same terms and conditions of original le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perty Act reads thus:- "Effect of holding over. If a lessee or under-lessee of property remains in possession thereof after the determination of the lease granted to the lessee, and the lessor of his legal representative accepts rent from the lessee or under lessee, or otherwise assents to his continuing in possession, the lease is, in the absence of an agreement to the contrary, renewed from year to year, or from month to month, according to the purpose for which the property is leased, as specified in Section 106." [Emphasis supplied ] 18. We fully agree with the High Court and the first appellate court below that on expiry of period of lease, mere acceptance of rent for the subsequent months in which the lessee continued to occupy t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re could be no implied renewal by 'holding over' on mere acceptance of the rent offered by the lessee . In the instant case, option of renewal was exercised not in accordance with the terms of renewal clause that is before the expiry of lease. It was exercised after expiry of lease and the lessee continued to remain in use and occupation of the leased premises. The rent offered was accepted by the lessor for the period the lessee overstayed on the leased premises. The lessee, in the above circumstances, could not claim that he was 'holding over' as a lessee within the meaning of Section 116 of the Transfer of Property Act. 20. So far as the cross suit for specific performance of agreement of renewal of lease filed by the lessee is concerne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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