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2006 Supreme(Bom) 1110

IN THE HIGH COURT OF BOMBAY
(Dr. D.Y. Chandrachud, J.)
BHARAT PETROLEUM CORPORATION LTD., MUMBAI - Petitioners
V.

RUSTOM BEHRAMJI COLAH (Dr.) and others - Respondents
Advocates appeared
For petitioner: S.G. Page with S.R. Page
For respondents: P. S. Dani

Headnote:Bombay Rents, Hotel and Lodging House Rates (Control) Act, 1947 - Section 13(1)(g) Suit for eviction Suit plot was leased out by respondents/trustees of trust to Burmah Shell Company Said company was transferred to and vested in Central Government and its name was changed to Bharat Petroleum Corporation Ltd. Respondents/ trustees of trust seeking possession of suit premises on ground of bona fide requirement Need of trust was reasonable and bona fide Even if lease stood renewed that would not deprive the landlord/trust from exercising right to sue for eviction under Act. A plot of land was leased out by the respondents to Burmah Shell. The term of the lease was for a period of 20 years commencing from 1st January, 1956. Parliament enacted the Burmah Shell (Acquisition of its Undertakings in India) Act, 1976 by which the right, title, interest and liabilities of Burmah Shell in relation to its undertakings in India stood and transferred to and vested in the Central Government. Government of India issued a notification under Section 7 of the Act on the same date and on 2.2.1976 a fresh certificate of incorporation was issued by which the name of the nationalised company was changed to Bharat Refineries Ltd. The name of Bharat Refineries Ltd. was changed to Bharat Petroleum Corporation Ltd. in August, 1977. A suit for eviction was instituted seeking possession of the demised premises on the ground that the respondents who are trustees of the Hospital Trust required the premises reasonably and bona fide for the purpose of the trust. Petitioners argued that Section 13(1)(g) has no application in a situation whether the premises consist of open land. There is no merit in the submission. The ground for eviction under Section 13(1)(g) is that the premises are reasonably and bona fide required by the landlord for occupation by himself or by any person for whose benefit the premises are held or, where the landlord is a trustee of a Public Charitable Trust that the premises are required for occupation for the purpose of the trust. The need of hospital has been held to be reasonable and bona fide. The lease which was executed in favour of Burmah Shell would enure to the benefit of the Central Government as if the lease had been granted to the Central Government. The petitioner is the Government Company that has stepped into the shoes of the Central Government. Once the lease is renewed for 20 years the same terms and conditions would govern the lease during the renewed them save and except for the covenant for renewal unless both parties agreed that such an option for further renewal shall be included in the renewed lease. Admittedly on such further option had been agreed upon between the parties. The term of the renewed lease is over. There is no merit in the submission that the suit was premature. Even if the lease stood renewed, that would not deprive the landlord of his right to sue for eviction on a ground for eviction being made under the Rent Act. 1980 BCR 12; WP No. 1751 of 2001 dated 1.1.2004; 1998 (3) Mh LJ 62; 2004 AIR SCW 1989; (2004) 1 SCC 1 Referred.

ORAL JUDGMENT : - Rule, with the consent of counsel, made returnable forthwith. At the request of the counsel, the petition is taken up for hearing and final disposal.

On 27th August, 1956, an Indenture of Lease was executed between Burmah Shell Oil Storage and Distributing Company of India Ltd. ("Burmah Shell"), the predecessor -in -title of the Petitioners and the Respondents. By and under the lease a plot of land admeasuring 888 sq. yards being C.S. No.549, Mazgaon Division was leased out by the respondents to Burmah Shell. The term of the lease was for a period of 20 years commencing from 1st January, 1956 and the monthly rent was fixed at Rs. 550/=. Clause 3(c) of the lease deed contained the following covenant : -

"(c) If the Lessee shall have given to the Lessor not less than two calender months notice in writing prior to the expiration of the term preserved herein expressing a desire to renew the lease and shall have duly observed and performed all the terms and conditions hereof the Lessor will grant to the Lessee a new lease of the demised premises by way of renewal for such further term of years not exceeding 20 years as the Lessee shall desire in its absolute discretion to commence from the date of expiry hereof at the same rent and upon the same terms and conditions in all respects as are reserved and contained herein save and except this present covenant for renewal .unless it is specifically agreed by both parties that a further like option shall be included in the renewal lease."

The contention of the petitioners is that on 22nd October, 1975 a communication was addressed by Burmah Shell to the Respondents by which the right of renewal for a further period of 20 years was exercised. On 24th January, 1976 Parliament enacted the Burmah Shell (Acquisition of its Undertakings in India) Act, 1976 by which the right, title, interest and liabilities of Burmah Shell in relation to its undertakings in India stood and transferred to and vested in the Central Government.

The Government of India issued a Notification under section 7 of the Act on the same date and on 2 -2 -1976 a fresh certificate of incorporation was issued by which the name of the nationalised company was changed to Bharat Refineries Ltd. The name of Bharat Refineries Ltd. was changed to Bharat Petroleum Corporation Ltd. in August, 1977.

On 4 -2 -1982 the respondents served a notice on the petitioners terminating the tenancy. In 1982 a suit for eviction was instituted in the Court of Small Causes at Mumbai seeking possession of the demised premises on the ground that the respondents who are trustees of the Masina Hospital Trust required the premises reasonably and bona fide for the purpose of the trust.

2. The petitioners filed their written statement. Issues were framed and evidence was adduced before the Trial Court. By an order dated 14 -3 -2006 the trial Court allowed an application seeking amendment of the plaint to place certain additional particulars relating to the requirement of the respondents on record. The suit was decreed by the Court of Small Causes on 23 -2 -2001 under section 13(1)(g) of the Bombay Rents, Hotel, Lodging House, Rates Control Act, 1947. The appeal carried by the petitioners was dismissed by the appellate bench of the Small Causes Court on 9 -9 -2004. The appellate bench of the Small Causes Court has affirmed the view of the learned trial judge that the suit premises were required reasonably and bona fide by the Trust, which conducts the Masina Hospital. The appellate bench noted that sufficient particulars have been pleaded with regard to the bona fide requirement of the landlord. The number of patients has increased, the number of departments in the hospital has increased and residential quarters are required for the members of the staff. The evidence on record showed that there were sufficient particulars regarding the requirement of doctors, nurses, staff members and other employees of the hospital. The Tru

























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