Surinder Singh Nijjar, J. - (1.) This appeal is directed against the judgment and order dated 5.2.2004 passed by the High Court at Calcutta in MAT No.3993 of 2000. By the aforesaid judgment the Division Bench has upheld the judgment and order dated 30.8.2000 passed by the learned single Judge whereby the learned single Judge dismissed the writ petition challenging the newly added clause permitting 25% increase in rent every ten years and the huge amount on account of arrears of rent claimed by the respondents from the appellants for the plots of land leased to the appellants.
(2.) The appellants are assignees of two separate leases under the respondents, Calcutta Port Trusts. The leases were granted in respect of the Plots at Taratola Road. These leases were granted by the respondents in the year 1947 for an initial period of 30 years. The lease deeds contained identical provisions for two further renewals of 30 years each, at the option of the lessees. According to the appellants the renewal clause in both the leases provided that the renewal would be "at such rate of rent to be fixed by the Commissioners in accordance with the rates then prevailing for land in the neighbourhood of a similar character and with and subject to the like covenants, conditions and provisions as are in and by these presents reserved and contained." According to the appellants at the time of renewal the rent was liable to be enhanced (taking into account neighbourhood rents, but all other provisions of the original lease were to be maintained.
(3.) The appellants expressed the desire for a renewal of the leases for another 30 years, which expired on 30.6.1977. The respondents by communications dated 17.10.1977 and 29.12.1977 offered the appellants, renewal of the leases of the Plots on similar terms and conditions. However, the letters contained an identical stipulation as follows : "5. The renewal will be subject to the following conditions, besides other general conditions as embodied in the Trustees standard lease from :- ********** (iv) the lease will contain clause reserving to the Trustees the right to raise the rate of rent every 10 years during the initial period of the lease and also during the optional period of the lease up to 25% for the schedule rent prevailing at such time whichever is higher...." ;