The possession and leasehold rights of a fuel station premises. Hindustan Petroleum Corporation Limited (HPCL) claimed lease renewal rights under both contractual provisions and the Caltex Act. The court examined whether HPCL could successively exercise these rights and upheld the lower court's eviction decree.

The court concluded that:

1. Lease Expiry: The contractual and statutory rights under the Caltex Act were exhausted by November 30, 2003.
2. Supersession of Contractual Rights: Section 7(3) of the Caltex Act superseded the contractual provisions for lease renewal.
3. Eviction Order Justified: The Trial and Appellate Courts rightly decreed possession of the property to the respondents.

1. Case Background and Parties Involved

• Applicant: Hindustan Petroleum Corporation Limited (HPCL).
• Respondents: Legal heirs of the property owner, Mr. Mansukhlal Doshi.

2. Lease History

• Initial Lease: Granted to Caltex in 1964 for 20 years with options for two extensions of 10 years each.
• Nationalization: Rights were transferred to the Central Government under the Caltex (Acquisition of Undertakings) Act, 1977, and subsequently vested in HPCL.

3. Dispute and Litigation History

• Termination Notices: Respondents issued notices in 2003 and 2011 claiming lease expiry.
• HPCL’s Claim: Asserted renewal rights under both the contractual lease and the Caltex Act.
• Lower Court Judgments: Small Causes Court and its Appellate Bench ruled in favor of the respondents, directing HPCL to vacate the premises.

4. Legal Questions

• Could HPCL successively invoke contractual and statutory renewal rights?
• Did the Caltex Act supersede the contractual lease terms?

5. Observations by the Court

• Contractual Rights: Lease renewal clauses under the 1964 agreement were rendered ineffective by Section 7(3) of the Caltex Act.
• Statutory Rights Exhausted: HPCL could not claim further renewal after 2003, as its statutory rights had been exercised.
• Supreme Court Precedents: Relied on BPCL vs. Rama Chandrashekhar Vaidya (2014) and HPCL vs. Vilas Madhavrao Paygude (2024) to affirm this interpretation.

6. Final Judgment

• Eviction decree upheld.
• HPCL granted one year to vacate, provided it pays compensation of ₹3,00,000/month without prejudice to the respondents’ right to claim mesne profits.

Acts and Sections Discussed:

1. Caltex Act, 1977: Section 7(3) - Governing renewal of leases post-nationalization.
2. Transfer of Property Act, 1882: General principles on lease termination.
3. Code of Civil Procedure, 1908: Order 20, Rule 12 - Mesne profits inquiry.

Ratio Decidendi:

Statutory rights under the Caltex Act supersede any existing contractual rights, and once exercised, they cannot be invoked successively or endlessly.

Subjects:

Leasehold Rights and Nationalization Laws

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