Sikri, C. J. - (1.) This appeal is directed against the judgment of the Madras High Court (Veeraswarni, C. J., and Gokulakrishnan, J.) dismissing the appeal filed by the plaintiffs-appellants against-the judgment and decree of Kunhamed Kutti, J., dated February 20, 1967, made in the exercise of the ordinary original civil jurisdiction of the Madras High Court.
(2.) The plaintiffs had filed a suit on the following allegations. The plaintiffs who were landlords leased to defendant No. I the plot of land on Mount Road, Madras, under a duly registered lease deed dated November 17, 1938, for a period of 15 years 3 months from March 1, 1939 at a rent of Rupees 560/- per month on the terms and conditions set out therein with an option for renewal in favour of defendant No. 1 for a further period of 10 years from March 1, 1954 but at an enhanced rent of Rupees 630/per month, and subject to the other stipulations except the clause for renewal. For our purpose the following clauses are important. "2 The Lessee covenants with the Lessors as follows:- (c) Within a reasonable period from the date hereof, at his own cost and charges, under the supervision of the Lessors and in accordance with plans, elevations, sections and specifications to be first approved by the Lessors, erect, cover in and complete in a substantial and workman like manner on the demised plot of land. a theatre with all proper offices and out buildings such as bazars, restaurants, motor and dunamo sheds etc., and fences, drains, sewers to be used for production and exhibition of films and for staging Drama therein and to expend in building such theatre a sum of not less than Rupees 50,000/-. The Lessee shall be at liberty to put up other buildings in addition to the above. (d) Not to have an entrance for the theatre going public from the General Peters Road, so long as the Police Authorities do not permit such access from the said road. (f) In the erection and completion of such buildings to do all acts and things required by and perform the works conformably in all respects with the provisions of the statutes applicable thereto and with the by-laws and regulations of the Corporation of Madras to pay and keep the Lessors indemnified against all claims for the fees, charges, fines, penalties and other payments whatsoever which during the progress of the works may become payable or be demanded by the said authorities in respect of the said works or of anything done under the authority herein contained and from time to time discharge and pay all claims, assessments, outgoings now or at any time hereafter chargeable against an owner by Statute or otherwise in regard to the said plot of land or any buildings thereof, save and except the property tax and quit rent levied on the demised plot of land which alone shall be born by the Lessors. (g) Not at any time to cause or permit any public or private nuisance' in or upon the demised plot of land or anything which shall cause unnecessary annoyance, inconvenience or disturbance to the Lessors or to the occupiers of any adjoining or neighbouring premises or which shall lead to interference by the Police or Local Authorities and at all times to comply with all Municipal and Police requirements. (h) Not to install or cause to be installed on the demised land or any part thereof any petrol pump, without getting the Lessor's previous permission in writing and without providing sufficient safeguards to the Lessors' neighbouring owners and their other tenants. (o) Not to put up a compound wall on the southern side of the demised plot but to put up only iron railing or bars with a low wall if necessary, not exceeding three feet in height"
(3.) It was further agreed between the lessor and lessee:- "4. (d) At the expiration or sooner determination of the tenancy, the Lessors shall have the option of buying the buildings to be erected on the demised land the basis of valuation being as follows:- The buildings shall be valued at Rupees 50,000/- irrespective of the actual cost of construction and the Lessee shall allow a depreciation of 3 per cent per annum, the period being calculated for the purpose of this valuation from 1st March 1939. If within a week from such termination of tenancy the Lessors do not signify their willingness to purchase the building or erections at the aforesaid valuation from the Lessee, the Lessee shall within three months thereafter remove and carry away any buildings or erections on the demised plot of land and shall cause to be restored to its original or natural level state and condition the demised plot of land.";