CHHATU RAM HORIL RAM LTD. vs STATE OF BIHAR AND ANR.

The Supreme Court ruled that under the Bihar Land Reforms Act, 1950, specifically Sections 3, 4, and 10, the appellant's original lease was extinguished upon the estate's vesting in the State Government. The court held that the covenant for renewal of the lease did not create an interest in land and was merely an encumbrance, thus not binding on the State post-vesting. The appellant was not entitled to specific performance of the renewal clause as it was extinguished by Section 4 of the Act.