Renewal - Definition - Law Dictionary Home Dictionary Definition renewal

Definition :

Renewal, Black's Dictionary, Sixth Edn., defines the word 'renewal' at p. 1299 thus: 'The act of renewing or reviving. A revival or rehabilitation of an expiring subject; that which is made a new or re-established. The substitution of a new right or obligation for another of the same nature. A change of something old to something new. To grant or obtain extension of.' In P. Ramanatha Aiyar's 'The Law Lexicon' (Reprint Edn. 1987), the word 're-newal' is defined at p. 1107 to mean 'a change of something old for something new'. The renewal of a 'licence' means 'a new licence granted by way of renewal'. The renewal of a negotiable bill or note is regarded simply as a prolongation of the original contract. The office of a 'renewal', as it is termed, of a life policy, is to prevent discontinuance or forfeiture. In Provash Chandra Dalui v. Biswanath Banerjee, 1989 Supp (1) SCC 487: (SCC at p. 496) in para 14, this Court drew the distinction between the meaning of the words extension and renewal. It was held that: '..... a distinction between 'extension' and 'renewal' is chiefly that in the case of renewal, a new lease is required while in the case of extension the same lease continues in force during additional period by the performance of the stipulated act. In other words, the word 'extension' when used in its proper and usual sense in connection with a lease, means prolongation of the lease', Gajraj Singh v. State Transport Appellate Tribunal, AIR 1997 SC 412: (1997) 1 SCC 650.

A renewal of a lease is really the grant of a fresh lease. It is called a 'renewal' simply because it postulates the existence of a prior lease which generally provides for renewals as of right. In all other respects, it is really a fresh lease. Thus, the initial term of a lease of ninety years could not co-exist with the renewals of that very lease within ninety years, Delhi Development Authority v. Durga Chand Kaushish, AIR 1973 SC 2609: (1973) 2 SCC 825: (1974) 1 SCR 535.