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1996 Supreme(Bom) 690

IN THE HIGH COURT OF BOMBAY
R.M. Lodha, J.
Suresh K. Mehta ..... Applicant
Versus
S.B. Chincholikar another ...... Respondents. Civil Revision Application No. 272 of 1996, decided on 13-12-1996.
Advocates appeared :
D.R. Zaiwala with K. Presswala i/b Estlav Lam Co. ,for the petitioner.
Aspi Chinoy with Janak Dwarkadas i/b Desai and Diwanji, for respondent No. 2.

Headnote:Sections 13-A(2), 5(3), 6(4) and Maharashtra Co-operative Societies Act, 1961, Section 91 Flat given by member of Society under Part-II of Bombay Rent Act, 1947-Agreement of leave licence to give permission to the licence to use and occupy under Section 13-A(2)-Applicability of Section 91 not proper.-An owner of a flat in Co-operative Housing Society, Bombay by agreement of leave and licence gave permission to the licensee to use and occupy the flat for residence. The licensee did not hand over the peaceful possession of the flat to the landlady on expiry of licence period. The landlady made an application under Section 13-A(2) of the Bombay Rents, Hotel and Lodging House flats Control Act, 1947. The licensee made an application for leave to defend under Section 31-E (4)(a) of the Bombay Rent Act setting up the ground that the application under Section 13-A(2) was misconceived and not maintainable. The Competent Authority rejected the application for leave to defend and ordered eviction of the petitioner. In revision application by the licensee it was contended that the landlady licensor was not landlord within meaning of Section 13-A(2) of the Bombay Rent Act and the owner 01 the premises was the Co-operative Housing Society Ltd. And the landlady licensor was tenant member of the said society. It was further contended that the dispute between the parties was covered by Section 91 of the Maharashtra Co-operative Societies Act, 1960 and therefore proceedings under Section 13-A(2) were not maintainable.

       Held, that the spirit and scheme of this special procedure is that a licensee having taken the premises covered under Part-II on licence under written agreement from landlord who is not tenant or sub-tenant must discharge his obligations under the agreement honestly and hand over peaceful vacant possession of the licenced premises on expiry of licence period. If the licensee does not hand over vacant possession on expiry of licence, the landlord licensor has not to be dragged in protracted litigation by filing regular suit for eviction but he can proceed for recovery of possession, by instituting summary proceedings under Section l3-A(2) of the Bombay Rent Act. The licensee is not granted right to contest the said proceedings as a matter of course, but must disclose such facts and grounds which may disentitle the landlord from recovery of possession. From perusal of registration of society it was clear that co-operative housing society was co-partnership tenancy housing society registered under Rule 10 of Maharashtra Co-operative Societies Rules, 1961. The landlady licensor was co-partner member tenant in the Sterling Co-operative Housing Society. Though the words tenant and rent were used in bye-laws and regulations, these expression carry different connotation and different meaning and the relationship between a co-partner member tenant is of a special type which is governed by special laws i.e. Co-operative Societies Act, the rules framed the re(under, the bye-laws and regulations, framed by the society. By no stretch of imagination can it be said that the relationship between the co-partnership housing society and the tenant co- partner member is the relationship of landlord and tenant as is understood under the Rent Control Act or the Transfer of Property Act. A co-partner tenant member of co-partnership housing society is not such tenant who is excluded from the expression landlord in the explanation appended to Section 13-A(2). The tenant co-partnership society cannot claim itself to be landlord of its tenant co-partner members and no jural relationship of landlord and tenant can be read between the co-partner co-operative housing society and its tenant co-partner members. The definition under Section 5(3) defining landlord is restricted and narrowed for the purposes of Section 13-A(2) and a tenant or sub-tenant is excluded fron1 the expression landlord as defined under Section 5(3). It can conveniently be said as is expressed in explanation (a) that the landlord for the purpose of Section 13-A(2) excludes the tenant and sub-tenant but that does not mean that landlord has to be absolute and full power and would exclude a copartner tenant member in a co-partner co-operative housing society which has a special connotation under the special Act Le. Maharashtra Co-operative Societies Act. 1960 and the rules framed there under. The co-partner member of a co-partner housing society who gives the flat governed by Part II of the Bombay Rent Act on licence is landlord within meaning of Section 13-A(2) and can institute the proceedings there under if the licensee of such landlord fails to deliver the possession on expiry of licence period. The contention of the petitioner that the dispute ought to have been raised under Section 91 (I) of the Maharashtra Co-operative Societies Act was not sustainable. If the landlady licensor can maintain proceedings under Section 13-A(2) and relationship between her and the licensee is governed under Section 6(4) read with Section 13-A(2), the provisions of the Bombay Rent Act would prevail.

       Section 91-Bombay Rents. Hotel and Lodging House Rates Control Act. 1947. Sections 5(3). 6(4) and 13-A(2)-"Landlord"-Copartner member of co-partner Cooperative Housing Society-He gives his fiat under leave and licence agreement-Eviction of licence on expiry of licence period-Whether co-partner can be treated as landlord within meaning of Rent Control Act for eviction of licencee-Held. Section 91 of Act. 1960 would not apply and such member Is treated as landlord for Instituting proceedings under Section 13A(2) of Act. 1947.-The relationship between the co-partnership housing society and the tenant co-partner member is the relationship of landlord and tenant as is understood under the Rent Control Act or the Transfer of Property Act. A co-partner tenant member of co-partnership housing society is not such tenant who is excluded from the expression landlord in the explanation appended to Section 13-A2. The tenant co-partnership society cannot claim itself to be landlord of its tenant copartner members and no jural relationship of landlord and tenant can be read between the co-partner co-operative housing society and its tenant co-partner members. That is why any dispute between such society and its member is a dispute covered under Section 91 ( I) of the Maharashtra Co-operative Societies Act. and not under Rent Control Act. The explanation (a), appended to Section 13-A2 states that for the purpose of this section the expression landlord does not include a tenant of sub-tenant who is given premises on licence. it is thus apparent and clear that if a person, who is a tenant under the Rent Control Act gives the premises on licence he can not be treated as a landlord under Section 13-A2 and cannot take advantage of summary proceedings under Section 13-A2. However, the words tenant or sub-tenant occurring in explanation (a) cannot be said to include a copartner member tenant of co-partner housing society.

JUDGMENT

R.M. LODHA, J. :---In this Civil Revision Application filed under section 31-F of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 (for short, 'Rent Control Act'), the petitioner impugns two orders passed on 1-3-96 by the Competent Authority, Mumbai. By the first order dated 1-3-96, the Competent Authority refused petitioner leave to defend the proceedings in Civil Application No. 71/95 filed by respondent No. 2 herein under section 13-A(2) of the Rent Control Act and by the subsequent order of the even date, the Competent Authority ordered eviction of the petitioner from the disputed flat and also granted ancillary reliefs.

2.Facts first. The respondent No. 2 herein Mrs. Brijseth (for short, 'landlady-licencor') instituted the proceedings under section 13-A(2) of the Rent Control Act against the petitioner herein (for short, licencee) before the Competent Authority, Mumbai. She, inter-alia averred that she was the owner of flat No. 35, garage No. 54 in Block A of Sterling Apartments in Sterling Cooperative Housing Society Limited situated at 38, G. Deshmukh Marg, Bombay. By agreement of leave and licence dated 8th July 94, the landlady licencor gave permission to the licencee to use and occupy premises in question for residence in accordance with the terms and conditions reduced in writing in the said agreement, for a period of less than nine months from 8th July 94 to 31st March 95. The licencee furnished an interest free security deposit of Rs. 80 lacs for due performance and observance of the terms and conditions of the leave and licence agreement and this deposit was to be refunded to the licencee within one month of the expiry of the term of leave and licence agreement and surrender of peaceful, vacant possession of premises in question to the landlady licencor. The amount of Rs. 70,159 was also paid by licencee as sum of licence fee @ Rs. 8000/- p.m. Till the end of March 95 since the licencee was not able to secure alternative premises, the landlady licencor voluntarily extended the licence period by three months upto 30th June 95. The facts relating to earlier licence dated 23-1-1991 of flat No. 27 and its termination mutually on 1-4-1993 were also mentioned. Some correspondence ensued between the parties and ultimately when the licencee did not hand over the peaceful vacant possession of the disputed flat to the landlady licencor, she made application under section 13-A2 of the Rent Control Act on 25th September 1995. The licencee was served with the notice of the proceedings sometime on 25-9-95 and within prescribed time he made an application for leave to defend under section 31-E (4)(a) of the Rent Control Act. In the application for leave to defend the licencee set up the grounds that the application under section 13-A2 was misconceived and not maintainable and the Competent Authority had no jurisdiction because the parties had entered into an oral understanding for sale of the flat to the licencee for Rs. 88 lacs. According to licencee the amount of Rs. 80 lacs was not security or interest free deposit but was payment of part consideration of the sale price. The licencee stated that he had filed suit for specific performance of the agreement for sale of the suit flat on 22-6-95 before this Court. In the background of these facts, it was stated by the licencee in the application for leave to defend that there were certain triable issues including the relationship of licencor and licencee between the parties and whether the Court had jurisdiction to try the application and, therefore, leave to defend be granted.

3.The Competent Authority did not find any substance in the application made by the licencee for leave to defend and accordingly rejected the application by the order dated 1-3- 96. The Competent Authority after rejecting the application for leave to defend proceeded on the merits of the application made by the landlady licencor and held that in view of the written leave and licenc























































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