Decided on November 26,1991

ARJAN SINGH Respondents


KAMLESH SHARMA,J. - (1.) In this Regular Second Appeal, Municipal Committee, Solan, is aggrieved by the decree and judgment dated 23 -10 -1982 passed by the District Judge, Solan and Sirmaur Districts at Solan, confirming the decree and Judgment dated 26 -9 -1981 of Senior Sub -Judge, Solan and decreeing the suit of plaintiff -respondent, Arjan Singh for specific performance.
(2.) On 18 -6 -1980 Arjan Singh filed a suit for specific performance of the contract dated 19 -5 -1960 read with contract dated 5 -8 -1961 and to direct the defendants to execute further lease deed in respect of the property in dispute for a period of 20 years from 19 -5 -1980 to 18 -5 -2000 A D in accordance with law. The case of Arjan Singh was that on 19 -5 -1960 Municipal Committee, Solan, leased out its property that is, land measuring 413 Sq. metres comprised in Khasra No. 206, Lower Bazar, Solan and structure thereon for a period of ten years at an yearly rent of Rs 420 By another lease deed executed on 5 -8 -1961, the lease period of ten years was extended to twenty years and some of the conditions of the lease were also altered. Both these lease deeds are Ex. P -A and Ex. P -B on the record. It was further alleged by Arjan Singh that there is a renewal clause in these lease deeds according to which he exercised his option to renew the lease for a further period of 20 years vide his letters Ex P -D and Ex. PF. He had also deposited Rs. 420 towards the lease amount in the year 1980 -81 and was willing to perform his part of the contract for execution of a new lease deed But Municipal Committee, Solan, instead of renewing the lease deed, gave notice dated 19 -4 -1980 and 4 -6 -1980 Ex DA and Ex. D -B, for vacation on the ground that it required the premises in dispute for the public purpose of development of bus -stand etc., as per its unanimous resolution dated 22 -3 -1980, Ex. D -Y. In these circumstances Arjan Singh filed the suit out of which the present appeal arises.
(3.) Municipal Committee, Solan, resisted the suit and took preliminary objection that contract was void ab -initio as the Municipal Committee was not empowered to execute a lease deed for twenty years. On merits it took the defence that as the property in dispute is required for the public purpose of extension of the present bus -stand and for providing taxi stand, it had decided, vide its resolution dated 22 -3 -1980, not to lease it out any further. The defence of Municipal Committee, Solan, did not find favour with the trial Court and it decreed the suit on 26 -9 -1981 and directed the Municipal Committee "to renew the lease of the plaintiff for a further period of 20 years or for such period which the defendant is competent under law to create lease and execute a valid document thereof at the expense of the plaintiff and get it registered within the period of two months from today -" Interpreting the renewal clause, the trial Court held that if Arjan Singh exercised his option for renewal, the Municipal Committee was bound to execute new lease deed but for the period which is within its competence. These findings were confirmed by the District Judge in the appeal filed by the Municipal Committee.;

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