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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
A.S. Gadkari, J.
Bharat Petroleum Corporation Ltd. - Appellant
Versus
Jaysingh Bhagwandas Kapadia & Ors. - Respondents
Civil Revision Application No. 579 of 2019
Decided On : 15-12-2021
Lease Deed - Maharashtra Rent Control Act, 1999 - Section 3(1)(b) - Clause No.4(b) of Lease Deed - [SUMMARY OF ACTS AND SECTIONS REFERENCED]
Fact of the Case:
The applicants challenged a judgment and order directing them to deliver vacant possession of the suit premises and conduct an enquiry regarding mesne profits under Order 20 Rule 12 of Civil Procedure Code. The suit property was leased to the applicants, and the lease was terminated by the respondents.
Finding of the Court:
The court found that the respondents had validly terminated the lease and were entitled to possession of the suit property. The court also noted that the applicants, being a profit-making company, should have handed over the property gracefully instead of litigating for more than 12 years.
Issues: The main issue was whether the applicants were entitled to a further renewal of the lease, and whether the judgments of the lower courts were legally sound.
Ratio Decidendi: The court held that the respondents had renewed the lease for a period of 20 years as per the lease deed, and there was no provision for a further extension of the lease period for 29 years as claimed by the applicants.
Final Decision: The revision application was dismissed, affirming the judgments of the lower courts.
JUDGMENT
a.S. Gadkari, J. - Rule. Rule made returnable forthwith.
By consent of learned counsel for the respective parties, heard finally.
2. Heard Mr.Page, learned advocate for the applicants and Mr.Dhakephalkar , learned Senior advocate for Respondents. Perused entire record.
3. applicants/Original Defendants have impugned the Judgment and Order dated 14th December 2011 passed in favour of the Respondents directing the applicants to deliver the vacant possession of the suit premises within 3 months from the date of passing of the said Order and to conduct an enquiry regarding mesne profits under Order 20 Rule 12 of Civil Procedure Code (for short, 'C.P.C.') and the Judgment and Order dated 4th June 2019 passed by the appellate Bench of Court of Small Causes, Mumbai (Bandra Bench) in P.S.C.C. appeal No. 2 of 2012 in T.E.& R. Suit No. 102/150 of 2008, dismissing the appeal filed by the applicants and confirming the Judgment and Decree passed by the Trial Court dated 14th December 2011.
4. Respondent Nos.1 to 4 are successors-in-title of late Bhagwandas Gordhandas Kapadia, whereas Respondent No.5 is a receiver of part of rent in respect of the suit property and as such a lessor and a landlord of the applicants.
The suit property is a piece or parcel of land bearing Survey No.7 lying and situated at Magathane, Taluka Borivali, District Mumbai, admeasuring about 2000 sq. yards or thereabout. Late Shri Bhagwandas Gordhandas Kapadia was a Karta of his joint Hindu family including the suit property herein. Late Shri Bhagwandas G. Kapadia as a Karta of joint Hindu family entered into Deed of Lease for Pump Site with the then Burmah-Shell Oil Storage and Distributing Company of India Limited, now known as Bharat Petroleum Corporation Limited (applicants herein) dated 9th June 1967 for a period of 20 years commencing from 1st april 1967 at an agreed monthly rent of Rs.1,500/-. The said Lease-deed expired by efflux of time on 31st March 1987 and thereafter no fresh Lease-deed was executed.
5. In view of Clause No.4(b) of the Pump Site Lease Deed dated 9th June 1967, the applicants continued to be in possession of the suit premises as lessee at the revised rent of Rs.1875/- per month from 1st april 1987 for a further period of 20 years on the same terms and conditions in all respects, as mentioned and contend in the said Lease-Deed.
The Maharashtra Rent Control act, 1999 (for short, 'the said act') came into effect from 31st March 2000, thereby repealing the earlier Bombay Rent Control act, 1947. Section 3(1)(b) of the Maharashtra Rent Control act, 1999 postulates that, any premises let or sub-let to the companies having the paid up share capital of Rs.1 crore and more are exempted from the protection of the said act. The applicants are having paid up share capital of more than Rs.1 crore as well as is a Corporation and a Public Sector Undertaking and therefore under Section 3(1)(b) of the said act, it is exempted from the protection of the said act.
6. In furtherance of the operation of Clause No.4(b) of the said Lease-Deed, the applicants continued to remain in possession of the suit property as lessee upto 31st March 2007 and paid revised rent of Rs.1875/-per month. as the period of Lease-Deed came to an end on 31st March 2007, the Respondents issued a notice dated 24th June 2008 and terminated the said Lease-Deed and in effect the tenancy of the applicants.
7. It is the contention of the applicants that, as per Section 5 and 7 of the Burmah Shell (acquisition of Undertaking in India) act, 1976, they are entitled for a further renewal of lease from 1st april 2007 for a further period of 29 years and therefore they refused to vacate and handover possession to the Respondents in furtherance of termination notice and requested the Respondents to renew the said Lease-Deed. The Respondents left with no other alternative filed T.E.& R. Suit No. 102/150 of 2008 in the Court of Small Causes at Mumbai. Upon receipt of summons applicants appeared in the
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