In Provash Chandra Dalui v. Biswanath Banerjee, 1989 Supp (1) SCC 487, the Hon’ble Apex Court drew the distinction between “extension” and “renewal”. It was held thus:
“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 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.”
It is settled law that grant of renewal is a fresh grant though it breathes life into the operation of the previous lease or licence granted as per existing appropriate provisions of the Act, rules or orders or acts intra vires or as per the law in operation as on the date of renewal. State of Gujarat v. Nirmalben S. Mehta, (2016) 9 SCC 240.