STATE OF WEST BENGAL vs NIRANJAN SINGHA

The Supreme Court held that the extension of an agency agreement under clause 5 is not a matter of discretion but involves an element of legitimate expectation. The Court found that the respondent had complied with the conditions for extension, thus upholding the High Court's decision to grant renewal of the agency for another year. The appeal by the appellants was dismissed, affirming the lower court's ruling based on the precedent set in Food Corporation of India v. M/s Kamdhenu Cattle Feed Industries, 1993 (1) SCC 71.