DEVADHAR J.P., J.: - This appeal arises out of the judgment and order dated 24-2-1995 wherein the preliminary issue of jurisdiction raised by the appellant defendant has been rejected by the learned Single Judge by holding that section 41 of the Presidency Small Cause Courts Act, 1882 is not applicable to the Suit No. 4000 of 1990 filed by the respondent plaintiff against the appellant defendant and that the suit is maintainable in this Court.

2. For the sake of convenience the appellant is hereinafter referred to as the defendant and the respondent is hereinafter referred to as the plaintiff.

3. The facts set out in the Suit No. 4000 of 1990 are that by an indenture of lease dated 12th August, 1971 the plaintiff took on lease from the Government of Maharashtra a plot of land situated at Nariman Point, Mumbai 400 021 for a period of 99 years on terms and conditions as more particularly set out therein. On the said plot of land, the plaintiff was to construct a 5 Star Deluxe Hotel called "The Oberoi Towers" (hereinafter referred to as the hotel). To facilitate construction of the hotel, an agreement was arrived at between the parties hereto on 27-12-1974 wherein the defendan