In Brief
The Supreme Court dismissed an appeal by a company claiming renewal of a municipal lease for land in Gujarat. The land was originally leased in 1922 for an oil mill and was later renewed, with the latest lease valid until 2012. The court held that a municipality cannot renew a lease beyond the period authorized by State Government permission under the Gujarat Municipalities Act, 1963. The court also found that since the lessee had transformed the property into a commercial complex earning substantial profits while paying minimal rent, and no longer operated an oil mill as originally leased, renewal could not be claimed as a matter of right. Public property cannot be converted to different purposes without permission, and the municipality's need for the land for educational purposes strengthened the dismissal.
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