Bharat Petroleum Corp.Ltd vs Rama Chandrashkhar Vaidya & Anr

3. The facts which provide the context for judging the appellant’s claim are brief and simple.

4. The predecessor of the appellant, namely, Burmah Shell Oil Storage and Distributing Company of India Limited came in occupation of a piece of land situated at Kurla, Taluka-South Salsette, District Bombay suburban, now included in Greater Bombay, admeasuring an area of 19,188 square feet, bearing Hissa No.1 (part) of Survey No.305 of Kurla (the suit premises) on the basis of a registered deed of lease dated September 22, 1955. The lease was for a period of 25 years beginning from March 1, 1955 and further gave to the lessee [vide. Clause 3 (d)] the unilateral right of renewal for an additional period of twenty five years by giving a notice in writing two months prior to the expiration of its term.

5. On January 24, 1976, the Burmah Shell (Acquisition of Undertakings in India) Act, 1976 came into force and by virtue of section 3 of the Act, the right, title and interest of Burmah Shell in relation to its undertakings in India stood transferred to and vested in the Central Government. Later on, following a notification issued by the Central Government under section 7(1) of the Act, the right, title and interest and the liabilities of Burmah Shell in relation to any of its undertaking in India that had vested in the Central Government were transferred to and vested in the appellant Company.

7. At this stage, it needs to be noted that though the appellant gave to the lessor the renewal notice and also continued to occupy the suit premises for the next twenty five years, no fresh lease deed was actually executed between the parties and registered in renewal of the previous lease. It also needs to be noted here that the lessor sent a letter to the appellant on April 24, 1980 stating that the monthly rent of the suit premises stood increased to Rs.500/- from March 1, 1980[2], but the appellant was remitting rent to the lessor at the old rate of Rs.400/- only. The appellant was requested by the letter to pay the differential amount for the past two months and to pay the future rent at the increased rate of Rs.500/- per month.

8. As the second twenty five year term was nearing expiry, another notice for renewal of the lease was given on behalf of the appellant to the lessor on October 7, 2004. This notice was, once again, with reference to the lease deed dated September 22, 1955. It was stated in the notice that the lease after its renewal would be expiring on February 28, 2005 and the appellant was desirous of continuing in occupation of the premises for another period of thirty years. This notice concluded by observing and claiming as under:

11. At that stage the respondent – lessor filed a suit for eviction of the appellant which was registered as T.E. & R Suit No.72/86 of 2005 in the court of Small Causes at Mumbai. The appellant contested the suit by filing a written statement and the court of Small Causes by judgment and order dated January 18, 2007 dismissed the suit. The respondent filed an appeal (appeal No.163 of 2007) before the Appellate Bench of the Small Causes Court at Mumbai challenging the order dismissing the suit. The appeal was allowed by the Appellate Bench by its judgment and order dated March 5, 2009. Against the order of the Appellate Bench of the Small Causes Court, the appellant filed a revision (revision application no.535 of 2009) before the Bombay High Court. The revision application was dismissed by the High Court by order dated October 14, 2009 and the appellant then brought this matter to this Court in appeal by special leave.

16. Therefore, the points urged by Mr. Sundaram need to be examined on their own merits.

24. Thus, viewed from any angle, the appellant cannot claim any further renewal of lease beyond February 28, 2005.

25. In light of the discussions made above, we find no merit in the appeal. It is, accordingly, dismissed with costs quantified at Rs.50,000/-.

26. However, having regard to the business of the appellant, it is given two months’ time from the date of the judgment to vacate the suit premises.

SLP(C) No.15/2010.

27. SLP(C) No.15 of 2010 is dismissed for the reasons stated in the judgment in the connected matter, being Civil Appeal (arising from SLP (C) No. 355 of 2010).

These interlocutory applications have been filed by the respondent (the landlord) stating that in gross violation of the undertakings given before the High Court, the petitioner, in connivance with its dealer, has inducted a rank outsider to the suit premises.

The appeal of the appellant/petitioner (the tenant) is dismissed by the judgment and order pronounced today.

The IAs are disposed of.