Lease to Bank

Querist : Anonymous (Querist) 04 January 2011 This query is : Resolved
My friend had leased a room to a bank for ATM for 9years but renewable upto 6 more years.As per clause h :lessor may seek extension and lessor shall grant extension.My question is :
Does the lessor have any option of terminating the lease at the expiry of 9 year period,i.e.,not granting extension of the lease even if lessee seeks extension in writing well in advance as per the agreement?(please see attached document :para "h")

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R.Ramachandran (Expert) 05 January 2011
Assuming that there are no other covenants which gives power to the Lessor to terminate the lease, looking at clause (h) alone, the Lessor does not have any right to terminate the lease in case the Lessee bank gives a notice of its intention to have the lease continued for another 6 years. The lessor is bound to grant such a lease. However, at the end of the 15 year period, the LESSOR shall have his right to either further extend the lease or not. Upto 15 years his hands are tied.

Raj Kumar Makkad (Expert) 05 January 2011
No term is found in favour of lessor to deny its extension and agreement is the final document to reply.

Y V Vishweshwar Rao (Expert) 12 January 2011
such Clauses in Lease agreements are also incorporated in Petrol Pump site /land lease agreements even they have incorporated another period of 50 years continuation clause - in fact the property is out of the hands lessors for Two/three Generation .

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