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2001 Supreme(Bom) 452

IN THE HIGH COURT OF BOMBAY
B.N. Srikrishna Smt. Ranjana Desai, JJ.
Ramesh Dwarkadas Mehra others.... Appellants.
Versus
Indravati Dwarkadas Mehra others.... Respondents.
Letters Patent Appeal No. 112 of 1998 in W.P. No. 5986 of 1997 along with Letters Patent Appeal No. 121 of 1998 in W.P. No. 2336 of 1997 along with Original Side Notice of Motion No. 2172 of 1998 in Suit No. 2747 of 1998, decided on 2-5-2001.
Advocates appeared :
V.Y. Sanglikar, in L.P.A. No. 112/98 in W.P. No. 5986/1997, for appellant.
V.N. Punwani, in L.P.A. No. 112/98 in W.P. No. 5986/1997, for respondents.
B.S. Desai, in L.P.A. No. 121/98 in W.P. No. 2336/1997, for the appellants.
Apurva G. Parikh, in L.P.A. No. 121/98 in W.P. No. 2336/1997, for respondents.
Ms. Doshi i/b. S.V. Malvankar and Mrs. A.S. Malvankar, in (O.S.) Notice of Motion No. 2172/98 in Suit No. 2747/98, for plaintiff.
N.Y. Gupte, in (O.S.) Notice of Motion No. 2172/98 in Suit No. 2747/98, for the defendant.
Virendra Tulzapurkar with P.K. Samdani, Mrs. Ferzana Behramkamdin and Mrs. Bhakti Popat i/b. Wadia Ghandy Co. on notice, in (O.S.) Notice of Motion No. 2172/98 in Suit No. 2747/98.
Aspi Chinoy, Ms. Shernaz Dhond i/b. Mahimtura Co., for plaintiff in Suit No. 1017/97.
N.M. Morje with V. Malim, in Suit No. 2573/93 for plaintiff.
R.M. Vasudeo, in Suit No. 2573/93 for defendant.

Headnote:Section 51-Presidency Small Cause Courts Act, 1882-Chapter VII (as amended in 1976)- Two Acts-When two Acts are cognate and have to be read in conjunction then it is clearly postulated in Section 51 of Bombay Rent Act.

       Section 9-Jurisdiction of Civil Court-In absence of express or implied order, exclusion of jurisdiction of Civil Court cannot be readily inferred.

Judgement Key Points

Certainly. Based on the provided legal document, here are the key points related to the jurisdiction and legal nature of suits involving licensors and licensees, particularly focusing on whether suits by a licensor against a gratuitous licensee are tenable before the Small Causes Court or should be filed in a Civil Court:

  1. Jurisdiction of Small Causes Court: The jurisdiction of the Small Causes Court is primarily established for suits involving the recovery of possession of immovable property, especially when the relationship is between a landlord and a tenant or a licensor and licensee supported by consideration (!) (!) .

  2. Meaning of Licence: The concept of licence under the relevant Act is a unilateral, personal right that does not require consideration and can be revoked at will. It is distinguishable from easements or interests in property and is generally non-transferable (!) (!) .

  3. Legislative History and Amendments: The relevant statutes have undergone amendments to include the terms "licensor" and "licensee," primarily to address evasion of rent control laws and to bring licensee relationships within the scope of jurisdiction for recovery proceedings. These amendments also aimed to unify the procedure for suits related to possession and licence fees (!) (!) .

  4. Interpretation of Section 41: The section initially used the term "permission" and was later amended to include "licensor" and "licensee," indicating an intent to cover relationships supported by consideration, not gratuitous licences. The language and amendments suggest that the section is meant for licences supported by material consideration, not gratuitous licences (!) (!) (!) .

  5. Exclusion of Civil Court Jurisdiction: The jurisdiction of the Civil Court is not automatically ousted unless explicitly or implicitly provided by law. The amendments and legislative scheme indicate that suits involving non-gratuitous licences, especially those supported by consideration, are within the exclusive jurisdiction of the Small Causes Court (!) (!) .

  6. Suitability for Gratuitous Licences: Suits by a licensor against a gratuitous licensee do not fall within the scope of Section 41 of the Presidency Small Causes Courts Act, 1882. Such suits are better filed before a Civil Court, typically the City Civil Court or the High Court, depending on the valuation (!) (!) .

  7. Jurisdictional Principles: The law favors a strict interpretation of statutes that oust jurisdiction, requiring clear and explicit language. The absence of such explicit language in relation to gratuitous licences supports the view that the Small Causes Court does not have jurisdiction over such cases (!) (!) (!) .

  8. Final Determination: The legal reasoning concludes that suits by a licensor against a gratuitous licensee are not tenable before the Small Causes Court under Section 41. Instead, such suits should be filed in the Civil Court, and proceedings in the Small Causes Court are not applicable to gratuitous licences (!) (!) .

Please let me know if you need further analysis or specific legal advice related to this document.


Judgment

B.N. SRIKRISHNA, J.:---Notice of Motion No. 2127 of 1998 in Suit No. 2747 of 1998 was directed to be placed before this Bench by an order of the Hon'ble Chief Justice in exercise of the powers under Rule 28 of the High Court of Judicature Original Side Rules, 1980 for the said notice of motion could be more advantageously heard by this Bench along with Letters Patent Appeal Nos. 112 of 1998 and 121 of 1998 for deciding a common question of law which has arisen in all of them.

2. Though the facts in the two Letters Patent Appeal's and the Notice of Motion are different, the common question of law which arises for our consideration, and which would affect the outcome of all these proceedings, is formulated by us as under :

"Whether a suit by a licensor against a gratuitous licensee is tenable before the Presidency Small Causes Court under section 41 of the Presidency Small Causes Courts Act, 1882 or should such a suit be filed before the Civil Court ?

FACTS IN LPA NO. 112 OF 1998

3. This Letters Patent Appeal is directed against the order of the learned Single Judge in Writ Petition No. 5986 of 1997. The respondent original petitioner is the owner of the Flat No. 10 in Building No. 4, Navjivan Society, Lamington Road, Mumbai 400 008. The respondent purchased the said flat from her own funds in October 1970. Her husband living with her passed away in June 1983. The respondent has two sons, namely, Shashi and Ramesh. Ramesh is the appellant in this Letters Patent Appeal. Both the sons were permitted to live in two separate rooms in the said flat as licensees, without payment, by the respondent. They misbehaved and even made complaints against the respondent to the police. Therefore, the respondent served a notice upon them to vacate the premises licenced to them. No reply was sent by any of them. They refused to vacate. Hence, the respondent filed ejectment application under section 41 of the Presidency Small Cause Courts Act, 1882 in May 1990 for recovering possession of the two rooms from them. Suit No. 106 of 1990 filed against Shashi came to be decreed in June 1992. Appeal filed by Shashi came to be dismissed by the Appellate Bench of the Small Causes Court in June 1993. Similarly, Civil Revision Application filed by him in this Court also came to be dismissed. He left the said room. The defence raised in the said suit was that he was a joint owner of the flat along with his brother (present appellant) and their father. It was alleged that all of them had contributed to the purchase of the said flat. The appellant herein had deposed supporting the case of Shashi. The said case was not accepted. A contention was also raised by Shashi that he was a "gratuitous licensee" and that the Small Cause Court had no jurisdiction. But, the said contention was also rejected by the Appellate Court. In 1994, Suit No. 119 of 1990 filed against the respondent was taken up for hearing. The appellant had also raised similar defence of joint ownership. The trial Court held that the appellant was not the joint owner of the flat and that he was residing as a gratuitous licensee and that the license was terminated. It was held that the suit under section 41 of the Presidency Small Cause Courts Act, 1882 was maintainable. In the appeal filed by the appellant, namely, Appeal No. 75 of 1995, the Appellate Bench of the Small Causes Court, by an order dated 6th October, 1997, confirmed the finding that the appellant was not the joint owner of the flat. It was held that the Small Causes Court had no jurisdiction to decide the suit. Hence, the order came to be passed returning the plaint for presentation to the proper Court. Against the said judgment, the respondent herein preferred Writ Petition No. 5986 of 1997 before this Court. The said writ petition was allowed by the Judge dated 13th/15th April, 1998. Aggrieved by the said order, the appellant herein has preferred the present Letters Patent Appeal.

FACTS IN LPA NO. 121 OF 1998

4. The suit premises




























































































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