In Brief
Kundla Press sought renewal of a 30-year municipal lease of land in Savarkundla that had been granted for running an oil mill. Though the lease contained a clause stating it "would be renewed," the Supreme Court held the company had no automatic right to renewal. The municipality's statutory authority to lease land was limited by Section 65(2) of the Gujarat Municipalities Act: leases exceeding 10 years required State Government permission, which was granted only until 2012. Additionally, the company had abandoned the original oil mill business and converted the land into a profit-generating commercial complex. The Court dismissed the appeal, holding that public property leased at nominal rent cannot be indefinitely renewed or diverted from its original purpose.
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