THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY C.A.NO.682 OF 2011 ORDER This application has been taken out by M/s. Indian Oil Corporation seeking direction to the Official Liquidator to renew the lease in respect of retail outlet premises of M/s. G.Sundar Raj at Madanapalli, Chittoor District. This is second application. Earlier the applicant approached this Court for renewal of lease in its favour for the period commencing from 1-7-2008 to 30-06-2011. The said application came to be considered fixing the lease amount at Rs.50,000/- by order dated 9-7-2008. Paragraph No.3 of the order reads as under: “Though, in the report filed, the Official Liquidator has indicated that the rental value of the premises could be in the order of Rs.1,00,000/-, but however, taking into account and consideration the fact that the entire premises comprises of land of an extent of 346.26 square yards and that the same is situate at Bandamida Kamma Palli Village of Madanapalle Municipality in Chittoor District and that the landlord/lessor has not created any infrastructural facilities thereon and it is the Indian Oil Corporation which had established the entire infrastructural facilities on its own, I consider it appropriate to grant leasehold rights over the premises in question in favour of the Indian Oil Corporation for a period of three years commencing from 1-7-2008 to 30-06-2011, subject to the condition that the lease amount is fixed at Rs.50,000/- (Rupees fifty thousand only) per month and shall be paid every quarterly to the Official Liquidator at Hyderabad, to the credit of the company in liquidation. The lease period is liable to be curtailed, should any supervening event requires the leasehold rights in that regard to be so curtailed. So far as the arrears up to 30-06-2008 are concerned, they may be cleared on or before 15-08-2008 by way of deposit before the Official Liquidator at the rate fixed by the District Collector. Accordingly, the Official Liquidator is directed to execute the lease deed at the expense of M/s. Indian Oil Corporation.” Since the lease period is being expired by 30-06-2011, the instant application has been filed seeking extension of lease period. The Official Liquidator placed on record his report vide OLR No.139 of 2011. It is stated in the report that the rent is required to be fixed at Rs.1,50,000/- per month. Thereupon, the applicant placed on record additional affidavit giving the particulars of the area in occupation of other oil companies and also rents paid by them. Paragraph No.2 of the additional affidavit reads as hereunder: S. No. Name of RO Location Oil Co. Dist From our COCO Latest lease rentals Date of lease deed Measure- ment Sq.feet 1. Gopal Karthikeya F/S Chinta Mani Rd BPC 0.4 kms 21000 31.3.2011 10000 2. RMN Reddy Nr. NGO Home BPC 0.5 kms B site Not Appli- cable 2000 3. JMC Co. Nr Bus stand HPC 0.5 kms Land owned By Madana- palli Municipa- Lity RO Land under Dispute in Court 3000 4. Madana- palli Oil Supply Co Nr. Bus Stand HPC 0.7 Kms 10000 1978 4500 5. Balaji Oil Supply Co. Nr Veternery Hospital BPC 1.5 KMS B site Not applica- ble 4000 6. General Agencies Punga- noor Rd IOC 2.5 KMS 10285 27.9.2000 10800 The Official Liquidator in the report dated 5-8-2011 furnished the rent fetched by some commercial complexes in Madanapalle Town. However, he has not seriously disputed the particulars furnished by the applicant in the additional affidavit. Heard the learned counsel appearing for the applicant and the learned counsel appearing for the Official Liquidator. Keeping in view of the rents prevailing in the vicinity where the property is situated, the lease amount can reasonably be fixed at Rs.70,000/-. Accordingly, the company application is allowed renewing the lease for another three years i.e., from 1-6-2011 to 30-6-2014, subject to the condition that the amount is fixed at Rs.70,000/- per month and the same shall be paid every quarterly to the Official Liquidator at Hyderabad, to the credit of the company in liquidation. The lease period is liable to be curtailed, should any supervening event requires the leasehold rights in that regard to be so curtailed. Accordingly, the Official Liquidator is directed to execute the lease deed at the expenses of M/s. Indian Oil Corporation. __________________________ B.SESHASAYANA REDDY,J rkk Dated: 5-8-2011