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2023 Supreme(Bom) 1824

IN THE HIGH COURT OF BOMBAY
Manish Pitale, J.
Ambrosia Restaurants Pvt. Ltd. - Appellant
Versus
Sunita Dileep Nevatia - Respondent
Interim Application (Lodging) No. 15445 of 2023, Suit No. 409 of 2019, Notice of Motion Nos. 972, 541 of 2019, Interim Application No. 1793 of 2022
Decided On : 24-08-2023

Advocates appeared:
Simil Purohit, Advocate, Kalpesh Joshi, Advocate, Nisha Shah, Advocate, Rajiv Narula, Advocate

IMPORTANT POINT
The court established that the expiration of a license does not negate the right to seek restoration of possession under Sec. 6 of the Specific Relief Act, and illegal dispossession cannot be condoned by the courts.

Headnote:

SPECIFIC RELIEF - RESTORATION OF POSSESSION - Sec. 6 of the Specific Relief Act - The court analyzed the provisions of Sec. 6 of the Specific Relief Act, emphasizing its summary nature and the urgency of restoring possession to a party dispossessed without due process. The court interpreted that the expiration of the license period does not negate the court's jurisdiction to inquire into illegal dispossession. The court highlighted that the law does not permit extra-judicial dispossession, reinforcing the principle that possession cannot be disturbed without legal recourse.

Fact of the Case:

The Plaintiff filed a suit under Sec. 6 of the Specific Relief Act for restoration of possession of premises allegedly taken from them by the Defendants. The Plaintiff claimed to have been wrongfully dispossessed while in the process of renovating the premises, having invested significantly in it. The Defendants argued that the suit should be dismissed as the license period had expired, thus the Plaintiff had no right to possession.

Finding of the Court:

The court found that despite the expiration of the license period, it retained jurisdiction to inquire into the Plaintiff's claim of illegal dispossession. The court emphasized that the inquiry under Sec. 6 is limited to whether the Plaintiff was dispossessed without consent and not on the basis of the license's validity.

Issues: Whether the expiration of the license period precludes the court from granting relief under Sec. 6 of the Specific Relief Act and whether the Plaintiff was illegally dispossessed.

Ratio Decidendi: The court held that the expiration of the license does not strip the court of its jurisdiction to address claims of illegal dispossession. The court reaffirmed that possession cannot be disturbed without legal proceedings, and the urgency of Sec. 6 suits necessitates prompt judicial intervention.

Final Decision: The court dismissed the Defendant's application for dismissal of the suit based on admissions, allowing the suit to proceed and emphasizing the need for a prompt resolution.

JUDGMENT/ORDER

1. By this application, the Applicant (Defendant No. 2) is seeking judgment for dismissal of the suit on the basis of admissions. This application has been filed in peculiar facts and circumstances. In order to understand the background in which the present application has been filed, it would be appropriate to briefly refer to the facts of the present case.

2. The Plaintiff has filed the present suit under Sec. 6 of the Specific Relief Act (hereinafter refer to as the aforesaid Act) for restoration of possession of suit premises, which according to the Plaintiff, was forcibly and illegally taken from the Plaintiff by the Defendants. The Plaintiff has also sought ancillary reliefs, including interim reliefs, which were also separately pressed on the basis of Notice of Motion filed in the suit.

3. In the plaint, the Plaintiff has referred to and relied upon a Leave and License Agreement dtd. 7/10/2017, whereby the Plaintiff was inducted as a licensee from 21/3/2018 to 20/3/2023, it being referred to as the license period. The Plaintiff was inducted as licensee for running a restaurant and bar in the suit premises. It is the case of the Plaintiff that it spent about Rs.2.5 Crores in renovating the suit premises for the purposes of restaurant and bar and while it was in the process of completing the renovation work, it was wrongfully dispossessed, as the Defendants withheld the keys of the premises from the Plaintiff from 23/10/2018 onwards. The suit was admittedly filed within the period of limitation of six months and when the notice of motion for interim reliefs was pressed, an ad-interim order dtd. 15/11/2019 was passed restraining the Defendants from creating third party rights in the suit property. The said ad-interim order has remained in operation.

4. Although the suit filed under Sec. 6 of the aforesaid Act, is by its very nature is an urgent proceeding, which needs to be decided at the earliest possible, the record shows that the suit has remained pending. It is in this backdrop that the Defendant No. 2 has filed the present application. It is submitted that the pleadings in the plaint, which refer to and rely upon the Leave and License Agreement, show that the very period of the license itself expired on 20/3/2023. The relevant portions of the pleadings and the contents of the Leave and License Agreement have been quoted in the application and on that basis, it is submitted that the said pleadings amount to admission about the period of the Leave and License Agreement having expired on 20/3/2023. It is submitted that in these circumstances, once the Leave and License period itself is over, this Court exercising power under Sec. 6 of the aforesaid Act cannot possibly allow the suit for putting back the Plaintiff in possession. The prayers made in the present application are stoutly opposed and denied on behalf of the Plaintiff.

5. Mr. Simil Purohit, learned Counsel appearing for the Applicant (Defendant No. 2) in the present application, relied upon the statements made in the plaint and the contents of the Leave and License Agreement, to vehemently contend that the present suit deserves to be dismissed on the basis of such admissions in the plaint itself. It is submitted that this Court in the present suit filed under Sec. 6 of the aforesaid Act, can no longer consider the prayer of the Plaintiff to be put back in possession of the suit premises, for the simple reason that the Leave and License Agreement itself expired on 20/3/2023. It is submitted that if this Court were to give a direction to restore possession of the Plaintiff in the suit premises, it would amount to the Court creating a contract between the parties, which can never be countenanced. It is submitted that the status of the licensee is distinct from a lessee or a tenant and that therefore, in the peculiar facts and circumstances of the present case the suit deserves to be dismissed/rejected on admissions made in the plaint itself, although the

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