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Issues:
1. Interpretation of lease agreement and termination of tenancy. 2. Enforceability of lease agreement post-amalgamation. 3. Liability for arrears of rent and breach of contract. Analysis: Issue 1: Interpretation of lease agreement and termination of tenancy The plaintiff filed a suit for recovery of arrears of rent against the defendant. The lease agreement between the plaintiff's father and the Bank of Cochin Ltd. was for a period of 20 years at a monthly rent of Rs. 300. The defendant, a bank that took over the rights and liabilities of the Bank of Cochin Ltd., withheld rent from April 1986 and attempted to terminate the tenancy prematurely. The plaintiff argued that the agreement stipulated no termination before the expiry of the lease period. The defendant claimed the agreement was unconscionable and impossible to perform post-amalgamation. The trial court decreed the suit, which the defendant appealed against. Issue 2: Enforceability of lease agreement post-amalgamation The defendant contended that post-amalgamation, they sent notices to terminate the tenancy, rendering the lease agreement unenforceable. However, the plaintiff argued that the agreement remained valid until the end of the 20-year lease period as per the terms. The courts analyzed the implications of the amalgamation under the Banking Regulation Act and the Transfer of Property Act. It was established that the agreement, though affected by the amalgamation, remained binding until the agreed-upon period expired. Issue 3: Liability for arrears of rent and breach of contract The defendant surrendered the key of the building, indicating non-occupancy, leading to a breach of contract. The courts found that the defendant's actions constituted a breach, but the plaintiff could seek damages instead of specific performance. The judgment allowed the second appeal, setting aside the previous decisions, emphasizing that while the suit was dismissed, the plaintiff could pursue damages for breach of contract within a specified timeframe. The period of litigation was exempted from limitation for seeking remedies. In conclusion, the judgment clarified the enforceability of the lease agreement post-amalgamation, the implications of surrendering the building key, and the options available to the plaintiff for seeking damages for breach of contract.
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