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2019 Supreme(Bom) 1548

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Dama Seshadri Naidu, J.
Suhas Janardan Chavan Proprietor of Suhas Hydro Systems - Appellant
Vs.
Rajesh Housing Pvt. Ltd. - Respondent
Writ Petition No. 9374 of 2018, 9374 of 2018, 13388 of 2018; Civil Application No. 1636 of 2019, 1694 of 2019
Decided On : 28-08-2019

Advocates Appeared:
Sharin Nachan, Adv., Sumit Phatale, Adv., Rajesh Kachare, Adv., Anoop Patil, Adv., R.M. Bagkar, Adv.

Headnote:

Presidency Small Cause Courts Act,1882 - Section 34 - Civil Procedure Code - Order 41 - Rule 5 - Constitution of India - Article 227 - Arrangement pending the appeal – Claim of compensation - Once again, aggrieved licensee filed Writ Petition complaining that the amount fixed is excessive. On the other hand, the licensor filed Writ Petition No.13388 of 2018, complaining that the amount fixed is low. Initially, this Court, through its order dated 5th December 2018, refused to stay the Appellate Benchs order. Then, the licensee took the matter in SLP before the Supreme Court. Though the Supreme Court refused to interfere with that order, it has, however, given an opportunity to the petitioners "to apply for modification of the impugned order" provided a case to that effect on facts is made out - On the strength of the Supreme Courts order, dated 5th April 2019, the licensee pro se applied for "modification." If we skip the later developments, eventually both parties have agreed to argue the matter finally – Held, Before I could determine what may be the reasonable amount, I must examine whether the order impugned is arbitrary or perverse. If it is neither, I must not impose my view over that of the Appellate Bench. Merely because an alternative view is possible, the Revisional Courts will not upset otherwise well-founded orders of discretion. Judicial interference requires much more than a plausible or a probable alternative view - At the same time, I cannot lose sight of this being an arrangement pending the appeal, and it does not affect the licensors right to press Order 20 Rule 12 of CPC and seek mesne profits, as the trial Court has already held in the decree. Therefore, I consider the following aspects: (a) that the licencor holds a valid decree; (b) that the licencees statutory appeal not be rendered purposeless; (c) the original licence fee was Rs.6,000/- in 1998; (d) the security deposit then made is Rs.34,00,000/-; (e) now the property can fetch a rent of about Rs.2,00,000/-, as held by the Appellate Bench; and (f) the interim compensation will not preclude the licensor to apply for mesne profits before the trial Court - Under these circumstances, first, I hold that the licensor may apply under Order 20 Rule 12 for mesne profits. And the enquiry before the trial Court may go on uninterruptedly. Besides that, after considering the contractual rent, the security deposit made, and the present market potential of the property, I hold that the interim compensation should be Rs.90,000/- per month, instead of 1,25,000/-. The rest of the terms the Appellate Bench of the Small Causes Court remain unaltered - Licensee will pay the interim compensation of Rs.90,000/- from 1st October 2019, payable every month by 5th of the succeeding month. As to the arrears, after deducting the amount the licensee has already paid, he should pay them in six equal monthly installments. Should there be any dispute about the quantum of the arrears, either party may apply to the Appellate Bench for its determination on that count – Application dismissed

JUDGMENT :

Dama Seshadri Naidu, J.

The Petitioner is a licensee, the 1st respondent the licensor- Company, and the 2nd respondent its Director. In fact, the present licensor's predecessors entered into a leave and license agreement with the petitioner on 1st October 1998. The licenced property is an industrial shed, admeasuring 4000 sq. ft. The rent then fixed was at Rs.6000/- per month, with Rs. 34,00,000/- as the refundable deposit. The leave and license agreement shall be renewed for 7 terms. Each term coming to five years, the total lease period would be 42 years.

2. But in 2008, the licensor predecessor, that is the original licensor, filed L.E. Suit No.71/84 of 2008 and secured an eviction decree on 15th April 2013. The eviction was on the grounds that the licensee did not come forward to have the license period renewed despite the licensor's readiness.

3. Aggrieved, the licensee filed an Appeal No.41 of 2013 before the Appellate Bench of the Small Cause Court, Mumbai, under Section 34 of the Presidency Small Cause Courts Act,1882. The Appellate Bench invoked Order 41 Rule 5 of Civil Procedure Code,1806 (CPC), and stayed the execution of the decree subject to the licensee's depositing Rs.10,000/- per month as interim compensation. Then, the licencee challenged the Appellate Bench's order, dated 31st October 2013, before this Court in Writ Petition No.2826 of 2014. Through its order, dated 13th March 2018, this Court remanded the matter. It directed the Appellate Bench to consider the parameter fixed in the Supreme Court's Atma Ram Properties (P) Ltd., v. Federal Motors (P) Ltd., (2005) 1 SCC 705, case and decide afresh the interim compensation.

4. In fact, on remand, the Appellate Bench considered the issue and, on 31st July 2018, passed a fresh order of conditional interim stay: in the place of Rs.10,000/- per month, it fixed Rs.1,25,000/- per month as the monthly compensation.

5. Once again, aggrieved, the licensee filed Writ Petition No.9374 of 2018, complaining that the amount fixed is excessive. On the other hand, the licensor filed Writ Petition No.13388 of 2018, complaining that the amount fixed is low. Initially, this Court, through its order dated 5th December 2018, refused to stay the Appellate Bench's order. Then, the licensee took the matter in SLP before the Supreme Court. Though the Supreme Court refused to interfere with that order, it has, however, given an opportunity to the petitioners "to apply for modification of the impugned order" provided a case to that effect on facts is made out.

6. On the strength of the Supreme Court's order, dated 5th April 2019, the licensee pro se applied for "modification." If we skip the later developments, eventually both parties have agreed to argue the matter finally, so this Court could dispose of both the writ petitions. Then, the licensee has engaged Adv. Shri Shariqh Nachan. Submissions:

Petitioner:

7. In the above factual background, Shri Shariqh Nachan, the learned counsel for the licensee, has submitted that once the matter was remanded, the Appellate Bench has taken a diametrically opposite view. It has straight away raised the interim compensation manifold-from Rs.10,000/- to Rs.1,25,000/- per month. First, he has pointed out that the order suffered from non-application of mind. To support his contention, Shri Nachan has taken me to page 9 of the impugned order and contended that the Appellate Bench erroneously observed that the leased property was an open land and that it was let out for commercial purpose. Neither is correct. According to him, the property, in fact, is an industrial shed, and the purpose of license, too, is industrial. He has also drawn my attention to page 13, where the Appellate Bench has observed that the leave and license agreement contained a clause for annual increase of license fee @20%. Even that one, according to Shri Nachan, is erroneous because the leave and license agreement contained no clause of escalation.

8. Shri Nachan, second, has tak

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