Hindustan Petroleum Corp. Ltd vs Rajkumari Padma Kumari & Anr

The Supreme Court held that under Section 5(2) of the Esso (Acquisition of Undertaking in India) Act, 1974, the lease held by Esso Eastern Inc. was transferable to Hindustan Petroleum Corporation Ltd. (HPCL) upon acquisition, and HPCL had a statutory right to renew the lease for an additional ten years. The Court found that the District Magistrate erred in determining the standard rent from 15th March, 1990, as HPCL had exercised its renewal option, thus the standard rent should apply from 15th March, 2000 instead. The High Court's confirmation of the standard rent was upheld, but the effective date was modified.