2020 Supreme(Bom) 1185
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
S.C. GUPTE, J.
Vijay Anant Gangan – Appellant
Versus
Zenabibi Gulam Rasool and Others – Respondents
Civil Revision Application No. 357 of 2017
Decided On : 05-11-2020
Advocate Appeared:
For the Appellants : S.C. Naidu, Shamiana Hussain, Anikesh Pujary, Rakesh Sawant.
For the Respondents: Ranjeev Carvalho, Hiren G. Shah, Prakash, G.S. Godbole, Gauri Sakhardande, Tushar Goriadia.
The main legal point established in the judgment is the interpretation of lease provisions and relevant sections of the Rent Act to determine the grounds for eviction and the fixation of interim compensation.
Headnote:
eviction suit - interpretation of lease deed, Section 13(1)(e) and 13(1)(k) of the Bombay Rents, Hotel & Lodging House Rates Control Act, 1947 - 22 January 1968 - 25 June 2004 - 4 May 2017 - 2 April 2018 - 29 June 2019 - 2 April 2018 - 10 December 2020 - Rs. 2,50,000
Fact of the Case:
The case involves an eviction suit challenging the decree passed by the appellate bench of the Court of Small Causes at Mumbai. The suit was filed by legal heirs of the original lessor against the defendants, including the Applicant, alleging wrongful transfer of tenancy, arrears of rent, and non-user of the property. The trial court dismissed the suit, but the appellate bench reversed the decision and decreed the suit for eviction.
Finding of the Court:
The court found that the lease deed did not permit the lessee to transfer the leasehold rights, and the bequest of tenancy rights by the lessee would amount to a transfer prohibited by Section 13(1)(e). It also held that the suit property had not been used for the purpose for which it was let out, and such non-user had continued for more than six months, justifying eviction under Section 13(1)(k). The court confirmed the interim relief of stay of eviction decree, subject to the deposit of monthly compensation of Rs. 2,50,000.
Issues: Interpretation of lease deed, wrongful transfer of tenancy, arrears of rent, non-user of the property, and the fixation of interim compensation.
Ratio Decidendi: The court interpreted the lease deed and relevant sections of the Rent Act to determine the legality of the transfer of tenancy rights and the grounds for eviction. It also considered the valuation of the property and the basis for fixing interim compensation.
Final Decision: The court confirmed the interim relief of stay of the eviction decree, subject to the deposit of monthly compensation of Rs. 2,50,000 as a condition of the stay.
JUDGMENT :
S.C. GUPTE, J.
1. This civil revision application challenges a judgment and decree passed by the appellate bench of the Court of Small Causes at Mumbai reversing a decree of dismissal passed by the trial court in an eviction suit and decreeing the suit by ordering eviction of the Applicant herein.
2. The facts of the case may be briefly set out as follows:
2.1 By a lease deed dated 16 August 1949, one Abubaker Gulam Rasool Jerullah (“original lessor”) demised a piece or parcel of land known as “Dorachi khar” together with structures standing thereon in favour of one Chunilal Ukabhai Padia (“original lessee”) for a period of 30 years. The lease deed inter-alia permitted the lessee to construct on the land and own such construction.
2.2 The original lessee erected a building comprising of ground and four upper storeys, which came to be known as “Garment House” and carried on business of power laundry there under the name and style as “The Garment Cleaning Works.” In front of Garment House there were two chawl-like structures having about 20 tenements.
2.3 It was the case of the original plaintiffs (i.e. predecessors of the Respondents) that on or about 22 January 1968, after the death of the original lessor, his legal heirs entered into a supplementary indenture of lease permitting the original lessee to demolish the old structures standing on the property and erect new structures. The duration of the supplementary lease was for a period of 98 years commencing from 1 February 1968, with an option of renewal for a further period of 10 years.
2.4 On or about 1 April 1987, the original lessee died. Prior to his death, on or about 1 July 1985, he had executed a last will and testament creating inter-alia a charitable trust and appointing the Applicant herein and one Amritlal Gordhandas Jajal (“Amritlal”) as executors and trustees.
2.5 In or about 1988, one Zenabibi Gulam Rasool Jarullah and others, claiming to be legal heirs of the original lessor, filed the present ejection suit against three defendants, namely, the Applicant therein, Amritlal and ‘unnamed heirs and legal representatives of the original lessee’. During the pendency of the suit, Amritlal expired and his name was deleted from the cause title. Also, during the pendency of the suit, purportedly after learning about the identities of heirs and legal representatives of the original lessee, original defendant Nos.3A to 3K were brought on record in place and stead of defendant No. 3 (i.e. unknown heirs and legal representatives of the lessee). According to the original plaintiffs, defendant Nos. 1 and 2 (i.e. the Applicant herein and Amritlal) had no right to the tenancy of the suit property and were in wrongful use, occupation and possession of the same. The basis of the eviction suit was:
(a) wrongful transfer of tenancy of the suit property in breach of Section 13(1)(e) of the Bombay Rents, Hotel & Lodging House Rates Control Act, 1947 (“Rent Act”).
(b) arrears of rent.
(c) non-user of the suit property for a continuous period of more than six months preceding the suit without sufficient cause (this ground having been introduced later by way of an amendment).
In addition to eviction, the suit sought a money decree towards statutory rent/ compensation.
2.6 By a judgment and decree dated 25 June 2004, the trial court dismissed the suit. The trial court inter-alia found against the plaintiffs on all counts, i.e. unlawful subletting, arrears of rent and continuous non-user of the suit property for preceding six months.
2.7 The decree was challenged by the original plaintiffs before an appellate bench of the Court of Small Causes. During the pendency of the appeal, one Sumer Corporation, claiming to be a transferee of the suit property from the legal heirs of the original lessors by a registered deed of conveyance, applied for joinder to the appeal.
2.8 By its order and judgment dated 4 May 2017, the appellate bench of the court allowed the appeal, set aside the decree of dismis