JUDGMENT

S. C. AGRAWAL, J.:—

SLP (C) No. 16512/90

Special leave granted.

SLP (C) No. 8729/91

Delay condoned and special leave granted.

2. We have heard counsel for the parties in these appeals which arise out of the judgment dated October 5, 1990 passed by the High Court of Judicature at Bombay in Writ Petition No. 1491 of 1984 filed under Art. 227 of the Constitution of India and they are disposed by this common judgment.

3. Briefly stated the facts are as follows :

Premises comprising Block D, on the 3rd Floor of Contractor Building at Bai Awabai Kashinath Road, Bombay, was let out by the owners to one Nadirshaw P. Bhatena (hereinafter referred to as "Bhatena") on a monthly rent of Rs. 57.30 paise. The appellants in the appeal arising out of S.L.P. No. 16512/ 90 (hereinafter referred to as the appellants) are the owners of the said premises. The other parties to these proceedings are also described with reference to the said appeal. The tenancy of Bhatena was terminated by notice dated November 6, 1969 and thereafter he continued in occupation of the premises as a statutory tenant by virtue of protection conferred by the provisions of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 (hereinafter referred to as the Bombay Rent Act). On October 12, 1971, Bhatena permitted respondent No.5 and his wife, respondent No. 6 to occupy, as licensees, for a period of 11 months, a portion of the said premises, consisting of two rooms with common user of kitchen under an agreement dated October 12, 1971, executed by respondent No. 5. Under the terms of the said licence agreement, respondent No. 5 agreed to pay by way of compensation for use and occupation a sum of Rs. 325 per month and paid a sum of Rs. 3575/- to Bhatena towards the said compensation for a period of 1 1 months. He also deposited a sum of Rs. 5,0001- with Bhatena under the terms of the agreement dated October 12, 1971. Bhatena died on November 15, 1971 leaving behind respondents Nos. 1 to 4 as his heirs. Respondents Nos. 5 and 6 continued to remain in occupation of that portion of the premises given to them as licensees after the death of Bhatena. The Bombay Rent Act was amended by Maharashtra Act No. XVII of 1973, which came into force with effect from February, 1973. By the said amending Act, S. 15A was inserted whereby it was provided that where any person is in occupation of any premises or any part thereof as a licensee on February 1, 1973, he shall be deemed to have become for the purposes of the Bombay Rent Act the tenant of the landlord in respect of the premises or part thereof in his occupation. In the meanwhile, in March, 1972, the landlords filed an Ejection Application (E.A. No. 88 /E of 1972) in the Court of Small Causes at Bombay under S. 41 of the Presidency Small Cause Courts Act, 1882 against respondents Nos. 1 to 4 wherein it was stated that after the death of Bhatena, statutory tenancy had come to an end on November 15, 1971, the date of his death, and the defendants (respondents Nos. 1 to 4) were liable to deliver the vacant possession of the premises and it was prayed that the defendants be ordered to vacate the premises. Respondents Nos. 5 and 6 were not impleaded as parties in those proceedings. In the said proceedings, respondents Nos. 1 to 4 filed their written statement wherein it was claimed that they have inherited the tenancy and that they were entitled to continue in possession of the premises as tenants after the death of Bhatena. Respondents Nos. 1 to 4 did not, however, defend the proceedings and, the said proceedings were decided ex parte against them by the Court of Small Causes at Bombay vide order dated July 14, 1978 whereby respondents Nos. 1 to 4 were ordered to hand over vacant and peaceful possession of the premises on or before August 31, 1979.

4. It appears that in 1973 respondent No. 5 had also filed a declaratory suit (No. 1506/5225/73) against respondents Nos. 1 to 4 whereby he sought a declaration that he is the ten