Application for fresh lease

Application for fresh lease.—(1) On the termination of the lease or other arrangement under sub-section

1. (1) of section 3, the person in occupation may at his option apply for a fresh lease in the manner prescribed.
2. (2) On receipt of an application under sub-section (1), the Competent Authority may, where he is satisfied that the applicant is not guilty of violation of any conditions of the lease, grant fresh lease in accordance with such terms and conditions as may be prescribed or refuse to grant a fresh lease for reasons to be recorded in writing : Provided that where the person in occupation of the demised plot, the lease of which is stands terminated under this Act, was actually using the demised plot for industrial purpose and was not otherwise guilty of violation of any conditions of lease, his application for fresh lease shall not be rejected and he shall be granted a fresh lease on such terms and conditions as may be prescribed : Explanation : For the purpose of this Act where a lessee enters into a partnership agreement or other cognate arrangement for carrying on an activity whatsoever on the demised plot then notwithstanding anything in the Indian Partnership Act, 1932, Central Act, 9 of 1932 it shall also be deemed to be violation of the conditions of the lease.