TMI Blog2002 (10) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... onjoint reading of paras. 1 and 12 of the lease deed, is becomes clear that the lessor intended the lease to last for 18 years. The lessor could not have refused to renew/extend the lease after the first term if the lessee complied with the conditions for renewal/extension. So in view of the Explanation to section 269UA(f)(i), the total terms of lease will be 18 years no matter whether it is for a single term of 18 years or two terms of nine years each or three terms of six years each or six terms of three years each. Whether the subsequent terms are described as extensions or renewals is immaterial for the purpose of section 269UA(f)(i). If the aggregate of the original term and stipulated extension/ renewal comes to more than 12 years, su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issued a show cause notice to the petitioners asking them to show cause as to why the petitioners be not prosecuted under Chapter XX-C for their failure to submit Form No. 37-I within 15 days of the draft agreement. According to the appropriate authority, the said lease deed was for a period of more than 12 years, and, therefore, the non-submission of Form No. 37-I within 15 days of the agreement was punishable under section 276AB for violation of section 269UC of the Act. The petitioners gave reply dated June 12, 1996, contending that the lease was not for a period of more than 12 years. However, this contention of the petitioners did not find favour with the respondent who passed the impugned order dated April 24, 2001, authorising Sh. V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tenant extending the lease after the expiry of the original term. The authorities under the Act are not supposed to wait till the expiry of the original stipulated term to see whether the lease is renewed or extended and then decide the question of applicability or non-applicability of the provisions of Chapter XX-C of the Act to the transaction depending upon the renewal/non-renewal of the lease. The applicability of the provisions of Chapter XX-C to such transactions will have to be decided solely on the basis of the terms of the lease executed between the parties and if on a proper interpretation/understanding of the terms of the lease and the provisions of Chapter XX-C of the Act, the authority comes to the conclusion that the lease is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Learned counsel for the petitioners made a vain attempt to take the case out of the purview of the Explanation to section 269UA(f)(i) by drawing distinction between the words "extension" and "renewable". The Explanation to section 269UA(f)(i) uses the word "extension" whereas clause 12 of the lease deed uses the word "renewal". According to learned counsel for the petitioners, only cases of extension of lease for subsequent terms are covered by the Explanation to section 269UA(f)(i). Learned counsel for the petitioners cited some decisions to support his contention. In the case of Rasiklal M. Mehta v. Hindustan Photo Films Manufacturing Co. Ltd., AIR 1976 Mad 194, it was held that once a tenant exercises its option for renewal of the existi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the appellant in that case was that, the original stipulated term of lease was ten years so they are covered by the definition of Thika as given in section 5 of the Calcutta Thika Tenancy Act, 1949, and are therefore entitled to protection under the said Act but the Supreme Court held that the lease was for a period of more than 12 years. While dealing with the words extension" and "renewal', the Supreme Court in para. 12 of the said judgment observed that: "The distinction between "extension" and "renewal" is chiefly that in the case of renewal, a new lease is required, while in the case of extension the same lease continues in force during additional period by the performance of the stipulated act. In other words, the word 'extension' w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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