https://www.taxtmi.com/caselaws?id=164800 The Supreme Court examined whether a Government company had an absolute statutory right to renew a lease under the Burmah Shell (Acquisition of Undertakings in India) Act, 1976, and held that the renewal power was not immune from constitutional control. Although the statutory scheme transferred the undertakings and leasehold rights and extended the renewal mechanism to the company, the phrase "if so desired" did not authorise arbitrary action. As a State under Article 12, the company had to act on objective criteria, with fairness, reasonableness and bona fides. The claim of unfettered automatic renewal was rejected, and the concurrent finding that the renewal request was not bona fide was left undisturbed. en-us Fri, 27 Apr 2007 00:00:00 +0530 Fri, 06 Jun 2014 15:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=164800 The Supreme Court examined whether a Government company had an absolute statutory right to renew a lease under the Burmah Shell (Acquisition of Undertakings in India) Act, 1976, and held that the renewal power was not immune from constitutional control. Although the statutory scheme transferred the undertakings and leasehold rights and extended the renewal mechanism to the company, the phrase "if so desired" did not authorise arbitrary action. As a State under Article 12, the company had to act on objective criteria, with fairness, reasonableness and bona fides. The claim of unfettered automatic renewal was rejected, and the concurrent finding that the renewal request was not bona fide was left undisturbed. Case-Laws Companies Law Fri, 27 Apr 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=164800