1991 Supreme(SC) 472
K.RAMASWAMY, N.M.KASLIWAL
East India Hotels LTD. – Appellant
Versus
Syndicate Bank – Respondent
Advocates:
Anil B.Divan, Chetna Anand, F.S.NARIMAN, KAPIL SIBAL, NINA GUPTA, Nitin Thakkar, P.H.Parekh, P.K.MULLICK, R.F.NARIMAN, S.GANESH RAO, S.U.KAMDAR, SHANTI BHUSHAN, Syed Naqvi, Tripurari Ray, V.V.PAL, VINIT KUMAR
Judgement Key Points
- Supreme Court of India case involving East India Hotels Limited (Company) and Syndicate Bank (Bank). (!) (!)
- Special leave granted; appeal against Bombay High Court judgment dated 6/11/1990 decreeing Bank's suit under Section 6 of Specific Relief Act. [1000351770001][1000351770002]
- Company borrowed Rs. 30 lakhs from Bank at 12.5% interest, repayable in 10 years; Bank granted leave and licence for 15,000 sq. ft. in Oberoi Towers for 12 years at Rs. 60,000/month compensation. [1000351770002]
- Licence renewable for another 12 years on Bank's written application if Company deems fit and mutually agreed terms. [1000351770002]
- Company repaid loan; reminded Bank of expiry on 31/12/1986 and requested vacation due to space constraints. [1000351770002]
- Bank requested renewal; Company refused; Bank continued possession post-expiry, Company rejected compensation and served notice on 22/01/1990. [1000351770002]
- Fire on 12/04/1990 forced vacation; Bank shifted business elsewhere, left belongings; Company later restricted access. [1000351770003]
- Bank filed suit under Section 6 on 29/08/1990; parties agreed to treat notice of motion hearing as suit trial, conceding dispossession as alleged. [1000351770003]
- High Court issues: (1) Maintainability of suit; (2) Relief if maintainable. Held Bank, as licensee in settled possession post-expiry, entitled to possession under Section 6; decree stayed 10 weeks. [1000351770004][1000351770005] (!) (!) (!)
- High Court observations: Criticized public bodies like Bank for exploiting litigation delays; suggested Company sue on title. (!) (!) (!) (!) (!)
- Kasliwal J: Section 6 summary remedy for dispossession without consent or due course of law; no inquiry into title. [1000351770005]
- Admitted: Agreement was leave and licence expiring 31/12/1986; no renewal; Bank trespasser post-expiry; no force used by Company. [1000351770005][1000351770006]
- Fire caused Bank to vacate voluntarily; Bank's letter admitted vacation and requested re-possession for repairs. [1000351770006] (!) (!) (!) (!) (!) (!) (!)
- No force in key handover; Bank not dispossessed forcibly; as trespasser, not entitled to Section 6 relief against owner
JUDGMENT
KASLIWAL, JJ.
(1) SPECIAL leave granted.
(2) THIS appeal is directed against the judgment of the Bombay High court dated 6/11/1990 whereby a suit filed by the Syndicate Bank under S. 6 of the Specific Relief Act, 1963 (hereinafter referred to as the Act) has been decreed.
(3) THE East India Hotels Ltd. (hereinafter referred to as the Company) took a loan of Rs. 30 lakhs from the Syndicate Bank. By an agreement dated 27/12/1974 the amount of Rs. 30 lakhs was advanced to the company on interest at the rate of 12.5 per cent per annum and . the amount was repayable in ten years. The Syndicate Bank executed a leave and licence agreement in favour of the company in respect of 15,000.00 sq. ft. on the mezzanine to the ground floor of the hotel Oberoi Towers situated at Nariman Point, Bombay on a monthly compensation of Rs. 60,000.00 per month, belonging to the company, for a period of 12 years. The leave and licence agreement inter alia provided that at the end of the said period of 12 years, the company shall, on the application of the licensee in writing, renew the licence for another period of 12 years if the company so deems fit on the terms and conditions
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