State Of West Bengal & Ors vs Niranjan Singha

The Supreme Court held that the discretion to extend an agency agreement under clause 5 is not absolute and must consider the legitimate expectation of the agent. The Court found that the respondent had fulfilled the conditions for extension of the agency agreement as stipulated, thus upholding the High Court's decision to grant renewal from April 4, 2000, to April 3, 2001. The Court emphasized that the distinction between extension and renewal does not negate the agent's rights under the agreement, referencing the precedent in Food Corporation of India v. M/s Kamdhenu Cattle Feed Industries, 1993 (1) SCC 71.