TMI Blog2010 (12) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... s of lease are not to be interpreted following strict rules of construction. One term of the lease cannot be taken into consideration in isolation. Entire document in totality has to be seen to decipher the terms and conditions of lease. - Here in the present case, Clause 1 in no uncertain term provides for extension of period of lease for a further period of nine years and clause 12 thereof provides for renewal on fulfillment of certain terms and conditions. Therefore, when the document is constructed as a whole, it is apparent that it provides for the extension of the term. If that is taken into account the lease is for a period of not less than twelve years. Once it is held so the explanation to Section 269UA(f)(i) is clearly attracted. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 269UC of the Act. Accordingly, a complaint was laid on 30th April, 2001 under Section 267AB read with Section 278B of the Act before the Additional Chief Metropolitan Magistrate alleging contravention of Section 269UC of the Act. Learned Magistrate by its order dated 30 th April, 2001 took cognizance of the offence and issued process against the appellants. 2. Appellants filed writ petition before the High Court for quashing the aforesaid order dated 24th April, 2001 of the appropriate authority rejecting their show cause and deciding to file criminal complaint. However, since the prosecution had already been launched against the appellants, the Division Bench of the High Court directed for treating the writ petition as an appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt. 4. Mr. Harish N. Salve, learned Senior Counsel, appearing on behalf of the appellants submits that renewal of lease and extension of lease are not one and the same thing and in view of the explanation to Section 269UA(f) of the Act a lease which provides for renewal of the lease cannot be fictionally taken into account for calculating the period of lease. He submits that the term of lease was for a period of nine years with contemplation of renewal for nine years and it did not provide for extension of the term of the lease; hence the total period is for less than 12 years. To bring home the distinction between renewal and extension of lease, Mr. Salve has relied on a large number of decisions of this Court viz. Provash Chandra Da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the further term or terms for which it can be so extended is not less than twelve years; (ii) xxx xxx xxx xxx" 6. On a plain reading of the explanation aforesaid it is evident that a lease which provides for the extension of the term thereof by a further term it shall be deemed to be a lease for a term of not less than twelve years, if the aggregate of the period for which the lease is granted and period of extension counted together makes it more than twelve years. In the present case, we are proceeding on our assumption that explanation to Section 269 UA(f)(i) would be attracted only when lease provides for extension of term and in view thereof, we do not consider it expedient to examine the judgment relied on by Mr. Salve. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lease for a further period of nine years after the expiry of the term of the present lease on 31st May, 2000. If the Lessee shall be desirous of such renewal it shall give a notice of such renewal to the Lessors at least three months prior to the expiry of the term in the present lease deed. The subsequent renewals of the Lease Deed shall also be got duly signed and registered. The renewals of the Lease shall be on the same terms and conditions." 7. Mr. Salve submits that statute providing for penal prosecution has to be construed strictly. He refers to Clause 12 aforesaid and contends that it shall govern the field. Mr. Bhatt submits that it is Clause 1 of the lease deed which shall govern the issue. We do not have the slightest hesita ..... X X X X Extracts X X X X X X X X Extracts X X X X
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