The main legal point established in the judgment is that the defendants breached their obligations under the lease deed, justifying the termination of the lease and entitling the plaintiffs to recover possession of the suit land. The court also granted the plaintiffs' claim for arrears of rent and compensation for unauthorized use and occupation of the suit land.

Headnote:
JUDGMENT - suit for declaration of title, possession and arrears of rent together with incidental prayers - Maharashtra Co-operative Societies Act - [JURISDICTION, LEASE DEED, BREACH OF OBLIGATIONS, INSURANCE, RENT, COMPENSATION, POSSESSION] - The court found in favor of the plaintiffs on the issues of jurisdiction, validity of the lease deed, breach of obligations by the defendants, failure to insure the buildings, and arrears of rent. The court also granted compensation for unauthorized use and occupation of the suit land and ordered the defendants to pay the arrears of rent and compensation with interest. The court dismissed the suit in respect of the prayer for a declaration of title.
Fact of the Case:

The plaintiffs filed a suit for declaration of title, possession, and arrears of rent against the defendants, a Co-operative Society registered under the Maharashtra Co-operative Societies Act. The plaintiffs alleged that the defendants, as lessees, committed breach of their obligations by failing to pay rent for three months and neglecting to insure the building structure on the suit land as per the lease agreement. The plaintiffs terminated the lease and sought possession of the suit land and buildings.
Finding of the Court:

The court found in favor of the plaintiffs, holding that the defendants breached their obligations under the lease deed by failing to pay rent and neglecting to insure the buildings. The court granted the plaintiffs' claim for arrears of rent and compensation for unauthorized use and occupation of the suit land, and ordered the defendants to deliver possession of the suit land to the plaintiffs.
Issues: The court analyzed and found in favor of the plaintiffs on the issues of jurisdiction, validity of the lease deed, breach of obligations by the defendants, failure to insure the buildings, arrears of rent, and compensation for unauthorized use and occupation of the suit land.
Ratio Decidendi: The court held that the defendants breached their obligations under the lease deed by failing to pay rent and neglecting to insure the buildings, justifying the termination of the lease and entitling the plaintiffs to recover possession of the suit land. The court also granted the plaintiffs' claim for arrears of rent and compensation for unauthorized use and occupation of the suit land.
Final Decision: The court partly decreed the suit, ordering the defendants to deliver vacant possession of the suit land to the plaintiffs, pay the arrears of rent and compensation with interest, and undergo an inquiry into future mesne profits. The court dismissed the suit in respect of the prayer for a declaration of title.

JUDGMENT - J.A. PATIL, J.:---This is a suit for declaration of title, possession and arrears of rent together with incidental prayers. The plaintiffs are the owners of the suit land which is a large plot of land, admeasuring 25034.88 sq. metres, bearing Survey No. 61 Hissa Nos. 1 to 6, Survey No. 62/ 1 to 2, Survey No. 63/ 1 to 11, Survey No. 64/ 1, 4-A, 9 and 10 and Survey No. 65/ 3 to 5 situate at Marol Maroshi Road, Andheri, Mumbai. The defendants are a Co-operative Society registered under the Maharashtra Co-operative Societies Act. By an indenture of lease dated 29th July, 1972, made between the plaintiffs and defendants, the plaintiffs demised the suit land together with the buildings standing thereon or which may be constructed upon it for a term of 98 years commencing from 1st January, 1970, for a monthly rent of Rs. 9000/ payable on or before 10th of each calendar month. The said indenture of lease is duly registered and it contains certain terms and conditions. Besides the payment of rent, as stated above, the lessees agreed to insure the buildings constructed on the suit land together with full insurable value against loss or damage by fire in the joint names of the lessees and the lessors and to produce the insurance policy and receipt of payment of premium. Condition No. 4(a) is to the effect that if the rent or any part thereof remains unpaid for a period of two months after the date on which the same ought to be paid or if the lessees made or commit a default in performance and/or observance of any of the convenants and conditions or if such defaults continues and is not remedied for one calendar month from the date of the service of notice in writing, it shall be lawful for the lessors to determine the lease in every respect and to re-enter upon the said suit land. The Indenture of lease provides that the suit land can be used for the purpose of commercial, industrial, garages, warehouses, godowns or for any other purpose, as may be permitted by law. At the expiration of or determination of the lease, the lessees were to deliver to lessors the suit land together with the buildings and structure standing thereon. It was further agreed that the lessors shall pay to the lessees compensation as may be mutually agreed upon between them for the reasonable value of the structures or buildings on the suit land. In the event of the lessors and lessees not being able to agree upon or arrive at a reasonable value of the buildings, it was agreed to call for a report of an independent Architect.

2. The plaintiffs have alleged that the defendants, as the lessees, committed breach of their obligations on two counts. Firstly, they failed and neglected to pay to the plaintiffs rent in respect of the suit land payable for the months of April, May and June, 1976 aggregating to Rs. 27,000/- and thereby committed a breach of Clause 2(a) of the Indenture of the lease. Secondly, the defendants failed and neglected to insure the building structure upon the suit land as stated in Clause 2(h) of the indenture of lease. The plaintiffs therefore, sent a notice dated 13th July, 1976 to the defendants and pointed out the aforesaid two breaches and called upon them to pay to the plaintiffs the arrears of rent of three months and also to ensure the buildings upon the suit land and produce for the plaintiffs' inspection the insurance policies and receipts of payment of premia. The plaintiffs have alleged that the defendants after receiving the notice, did not comply with the demands made therein and failed to remedy the breaches pointed out to them. The plaintiffs, therefore, by their second notice dated 21st September, 1976 terminated the lease and decided to exercise the power of re-entry. They called upon the defendants to deliver possession of the suit land together with the buildings and structures thereon. According to the plaintiffs they are always ready and willing to perform their obligations under the Indenture of lease but the defen

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2001 Supreme(Bom) 987

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