UNION OF INDIA vs M/S.SHIV DAYAL SOIN & SONS P.LTD..

The Supreme Court addressed the validity of a lease under the Displaced Persons (Compensation and Rehabilitation) Act, 1954, specifically interpreting Clause 1(vii) of the lease deed which restricts the use of the leased land for residential purposes only. The Court held that the lessee's act of leasing the first floor to the Life Insurance Corporation for non-residential purposes constituted a breach of the lease terms, thereby justifying the lessor's right to re-enter the property. The Court upheld the notice of re-entry issued by the lessor, affirming the extinguishment of the lessee's rights due to the breach.