Law:

Section:

(a) Easements Act (V of 1882)-------Ss. 60 & 62---Specific Relief Act (I of 1877), Ss. 42 & 55---Suit for declaration and permanent injunction---Plaintiffs had sought declaratory relief as to their right to operate C.N.G. stations under the licence agreement and had impugned the notice from the defendant (licenser) to plaintiffs to vacate---Plaintiff had prayed for consequential injunctive relief to the effect that the defendants be restrained to take adverse action against the plaintiffs on the basis of the notice calling upon the plaintiffs to vacate the C.N.G. filling plant within 30 days---Permission to operate C.N.G. station, issued by all the regulatory agencies were admittedly valid for 15 years and it was for that reason that renewal for two consecutive terms of five years was provided for in the agreement to cover the period of permission---Renewal clause in the agreement was to the effect that "this licence is valid for an initial period of 5 years beginning from the date, month and year first above written and may be renewed for two additional terms of five years each"---Contention of defendants that licence was only renewable at the option of the licenser was not convincing, the option for renewal in the renewal clause was not left at the discretion either of the licenser or of licensee---Termination of licence clause also showed that defendant could not terminate the agreement arbitrarily or at its sweet will, whims and fancies---Discretion was controlled by well-defined contingencies in terms of clauses of the agreement---Defendant, in terms of such clauses could terminate the licence before expiry of term on occurrence of three eventualities namely that the licenser for the surrender to its landlords required the premises; that the licensee had failed to discharge any of the objections under the agreement and that the licensee had failed to observe the safety standards---None of the contingencies, giving rise to revoke the licence agreement had admittedly either been invoked or, shown to, have occurred---Effect---Held, on examination of licence agreement as a whole it was noticed that the use of word "may" as employed in the renewal…

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