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1961 Supreme(SC) 333

P.B.GAJENDRAGADKAR, M.HIDAYATULLAH, K.N.WANCHOO, J.R.MUDHOLKAR, RAGHUBAR DAYAL
Municipal Corporation Of Greater Bombay – Appellant
Versus
Lala Pancham – Respondent


Advocates:
G.A.PANDYA, I.M.SHROFF, J.B.DADACHAN, M.C.SETALVAD, M.I.KHVAJA, S.V.Gupta

Judgement Key Points
  • The suit by tenants challenging a clearance order issued by the Municipal Corporation was not maintainable, as alternative remedies under the Act were available. (!) [1000122740005][1000122740023]

  • Tenants instituted the suit in a representative capacity against the Corporation and landlords regarding dilapidated buildings intended for demolition under an agreement. (!) [1000122740001]

  • Buildings were in dilapidated condition, with multiple notices and prosecutions ignored by owners and landlords, allegedly to facilitate demolition. [1000122740002]

  • Clearance area declared and order made under S.354R, challenged as ultra vires Art.19(1)(f) and mala fide, without particulars of mala fides. [1000122740003]

  • Trial court dismissed suit as not tenable; High Court allowed amendment and remitted for additional evidence on mala fides and fraud. [1000122740005]

  • Amendment adding para 8A introducing fraud by landlords had no basis in original plaint, where "mala fide" referred to unconstitutionality and lack of hearing, not fraud. (!) (!) (!) (!) [1000122740006][1000122740007]

  • Court cannot permit amendment to introduce entirely new case of fraud without basis in original pleadings; mere use of "mala fide" insufficient. [1000122740007]

  • High Court erred in remitting case for fresh trial or additional evidence under O.41 R.27 CPC, as no lacuna in evidence; documents did not prima facie prove fraud. (!) (!) (!) (!) [1000122740008]

  • Appellate court power under O.41 R.27 CPC limited to filling lacuna for pronouncing judgment, not for new evidence to support specific contention or retrial. [1000122740008]

  • Court cannot compel a party to examine particular witnesses, even if motivated by justice; must act within legal limits. [1000122740014]

  • Documents like letters from City Engineer and Commissioner did not evidence fraud or mala fides; reaffirmed landlords' offers for alternative accommodation. [1000122740009][1000122740010][1000122740011][1000122740012]

  • Architect reports on repair costs and non-compliance with notices do not indicate collusion between landlords and Corporation. [1000122740013]

  • Ss.354R and 354RA valid under Art.19(5); impose reasonable restrictions on tenants' property rights in public interest for unfit buildings. [1000122740015][1000122740017][1000122740022]

  • Commissioner may declare clearance area if buildings unfit for habitation and remedied by demolition without improvement scheme. [1000122740018]

  • Corporation must minimize hardship to dishoused persons; clearance by demolition or acquisition. [1000122740018] (!) (!) (!)

  • Before confirmation, notice published and served on tax liable persons/mortgagees; objections considered; tenants entitled to object via publication. (!) (!) (!) [1000122740019][1000122740020]

  • "Any person aggrieved" by confirmed clearance order may appeal to City Civil Court Judge within 6 weeks; includes tenants/occupants affected. (!) [1000122740020][1000122740021]

  • Tenants' interest in premises is "property" under Art.19(1)(f), subject to reasonable public interest restrictions. [1000122740016][1000122740017]

  • Suit barred post-confirmation and appeal remedy exhaustion; no independent suit lies. [1000122740023]


Judgment

MUDHOLKAR, J. : The question which falls for decision in this appeal from the judgment of the High Court of Bombay is whether the suit instituted by the plaintiffs in the City Civil Court, Bombay, was maintainable. The plaintiffs are some of the tenants occupying different rooms in a group of buildings knwn as Dhobi Chawls (and also known as the Colaba Land Mill Chawls) situate on Lala Nigam Road, Colaba, Bombay. There are a large number of other tenants also who reside or carry on business in these Chawls and the plaintiffs instituted a suit in a representative capacity on behalf of all the tenants. The first defendant to the suit is the Municipal Corporation of Greater Bombay and the remaining defendants 2 to 4 are landlords of the plaintiffs.

2. The buildings and the land on which they stand belong to the Colaba Land Mill Co., Ltd., Bombay. Under an agreement dated May 16, 1956 called the Demolition Agreement defendants 2 to 4 undertook for a certain consideration to demolish the buildings which are admittedly in a dilapidated condition after taking the permission of the Rent Controller, Bombay. Under cl. 7 of that agreement defendants 2 to 4 were to be put in possession


















































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