IN THE HIGH COURT OF JUDICATURE OF BOMBAY BENCH AT GOA
M.S. Sonak, M.S. Jawalkar, JJ.
M/s Maniyari Hotels Pvt. Ltd. - Appellant
Versus
Aihaana Achariya Sharma - Respondent
Stamp Number (Main) No. 639 of 2020, 923 of 2020
Decided On : 15-07-2021
License Agreement - Dismissal of Application for Temporary Mandatory Injunction - Agreement dated 13/4/2018 - Clauses 7 and 8 - Sant Lal Jain vs. Avtar Singh, (1985) 2 SCC 332 - Dorab Cawasji Warden vs. Coomi Sorab Warden and ors., (1990) AIR SC 867 - Ramdev Food Products (P) Ltd. vs. Arvindbhai Rambhai Patel and ors, (2006) 8 SCC 726 - Wander Ltd. and another vs. Antox India P. Ltd.,1990 Supp SCC 727
Fact of the Case:
The Appellants permitted the Respondents to manage a hotel premises under an Agreement of Leave and Licence. The Appellants terminated the license due to alleged breaches and sought a temporary mandatory injunction to regain possession of the premises.
Finding of the Court:
The Court found that the Appellant did not establish a higher standard than a prima facie case for the grant of a temporary mandatory injunction. The Court also considered the aspects of irreparable harm and balance of convenience, ultimately ruling in favor of the Respondents.
Issues: The main issue was whether the Appellant was entitled to a temporary mandatory injunction to regain possession of the hotel premises from the Respondents.
Ratio Decidendi: The Court applied the principles set out in Dorab Cawasji Warden vs. Coomi Sorab Warden and ors., (1990) AIR SC 867 and held that the Appellant did not meet the prerequisites for the grant of a temporary mandatory injunction. The Court also emphasized that the grant of such relief at the interlocutory stage would amount to a virtual grant of final relief in the suit.
Final Decision: The Commercial Appeal Stamp Number (Main) No.923 of 2020 was partly allowed, directing the Respondents to deposit amounts in terms of the agreement periodically. The Court clarified that the observations in the order were only prima facie and should not influence the Commercial Court's decision in the Commercial Suit.
JUDGMENT
M.S. Sonak, J. - Heard Mr. S.G. Desai, the learned Senior Advocate who appears along with Ms. Shalaka Shalke for the Appellants in both the appeals and Mr. Amit Palekar for the Respondents.
2. On 7/9/2020, we had made it clear that subject to constraints of time, an endeavor shall be made to dispose of this Appeal finally at the stage of admission. The learned Counsel for the parties agree that both these Appeals can be disposed of by a common Judgment and Order since, the challenge in both these Appeals is to the common Judgment and Order dated 28/1/2020 made by the District Judge, South Goa at Margao (Commercial Court).
3. Commercial Appeal Stamp Number (Main) No.639 of 2020 is directed against the dismissal of application for a temporary mandatory injunction at Exhibit 7 and Commercial Appeal Stamp Number (Main) No.923 of 2020 is directed against the dismissal of application at Exhibit D-17. Both the applications were filed before the Commercial Court by the Appellant herein. Accordingly, both these Commercial Appeals are admitted and taken up for final disposal with the consent of and at the request of the learned Counsel for the parties.
4. The challenge in both these Appeals is to the order dated 28/1/2020, made by the District Court, South Goa, at Margao in Special Civil Suit (Commercial) No.7/2019, dismissing the Appellant's (original Plaintiff) applications at Exhibits 7, 17 and 24, seeking, inter alia, for a temporary mandatory injunction, requiring the Respondents (original Defendants) to vacate the suit hotel premises and hand over the vacant and peaceful possession thereof to the Appellant.
5. The case of the Appellants is that vide Agreement of Leave and Licence dated 13/4/2018, they had permitted the Respondents to run and manage the Appellant's suit hotel premises for 99 months commencing from 1/5/2018 and ending on 31/7/2026, if not otherwise terminated in the manner provided in the said agreement. The Appellant's case is that the Respondents defaulted the payment of license fees and committed several other breaches of the Agreement dated 13/4/2018 and, therefore, the Appellant terminated such license and instituted the suit seeking several reliefs, including a decree to direct the Respondents to hand over the keys of the suit hotel premises, forthwith and/or cease to carry out the business in the suit premises by themselves or through their agents, etc. A decree for monetary relief was also applied for by the Appellant since, it was the case of the Appellant that several amounts were due under the Agreement dated 13/4/2018, before its termination.
6. The Appellant applied for a temporary mandatory injunction to require the Respondents to hand over the suit premises forthwith to the Appellant and/or to cease to carry out any business from the suit premises, pending final disposal of the Suit.
7. The Respondents denied the case set out by the Appellant in the plaint but submitted that the agreement, though styled as one of leave and license was, in fact, a lease deed. The Respondents also contended that the agreement contemplated carrying out several renovations and repairs to the suit premises by the Respondents, to make the suit premises usable as hotel premises and further that such repairs and renovations were in fact undertaken by the Respondents at their cost, estimated at Rs. 1.00 crore or thereabouts. The Respondents further contended that there was no default whatsoever in the payment of rents, but based on a misinterpretation of clauses 7 and 8 of the agreement, the Appellant claimed defaults and, in a high-handed manner, attempted to repudiate the agreement. The Respondents submitted that in fact, excess payments have been made to the Appellant and, therefore, the suit is liable to be dismissed. The Respondents opposed the grant of any temporary mandatory injunction or orders for deposit of all
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.