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2024 Supreme(Bom) 529

IN THE HIGH COURT OF BOMBAY
Amit Borkar, J.
New India Insurance Company Ltd. - Appellant
Versus
M/s. Klm Engineering Company Ltd. & Ors. - Respondents
Civil Revision Application No. 616 of 2009.
Decided On : 10-05-2024

Advocates appeared:
Mr. V. Y. Sanglikar for the Applicant.; Mr. Prasad Dani, Senior Advocate with Mr. Ashwin Bhadang, Mr. Vishesh Malviya, Mr. Raghav Dharmadhikari and Ms. Kinjal Shah i/by Rashmikant & Partners for respondent No.1.

IMPORTANT POINT
The court established that the issuance of eviction notices under the Public Premises Act requires the Estate Officer to demonstrate prima facie satisfaction based on adequate material, and that public authorities must act reasonably and in the public interest when seeking eviction.

Headnote:

PUBLIC PREMISES - EVICTION OF UNAUTHORISED OCCUPANTS - Public Premises (Eviction of Unauthorised Occupants) Act, 1971, Sections 2(e), 2(g), 4, 5 - The court discussed the definitions of 'unauthorised occupation' and the procedural requirements for eviction under the Public Premises Act. It emphasized the necessity for the Estate Officer to establish prima facie satisfaction before issuing eviction notices, and the importance of adhering to principles of natural justice. The court found that the Estate Officer failed to apply the law correctly, leading to the conclusion that the eviction order was invalid. The interpretations of the relevant sections highlighted the need for clear grounds for eviction and the requirement for the public authority to act reasonably and in the public interest, influencing the court's decision to dismiss the eviction application.

Fact of the Case:

The applicant, a government company, sought to evict the respondent from a public premises after the expiration of a leave and license agreement. The Estate Officer initially ordered eviction, deeming the respondent an unauthorised occupant. The City Civil Judge later set aside this order, prompting the applicant to file a revision application.

Finding of the Court:

The court found that the Estate Officer did not properly apply the law regarding the issuance of eviction notices and failed to establish the necessary prima facie satisfaction. The court concluded that the eviction order was invalid due to procedural errors and lack of adherence to legal standards.

Issues: 1. Whether the Estate Officer's issuance of notice under Section 4(1) was valid based on prima facie satisfaction. 2. Whether the applicant demonstrated a bona fide need for eviction and acted reasonably in compliance with constitutional principles.

Ratio Decidendi: The court held that the Estate Officer must form a prima facie opinion based on adequate material before issuing eviction notices. The failure to do so, along with the lack of evidence supporting the applicant's claim of bona fide need, rendered the eviction order invalid.

Final Decision: The court dismissed the revision application, upholding the City Civil Judge's decision to set aside the eviction order and ordered the applicant to repay the damages previously awarded.

JUDGMENT

Amit Borkar, J. - This revision application under section 115 of the Code of Civil Procedure, 1908 is directed against the judgment and order dated 6 August 2009 passed by the City Civil Judge, Greater Bombay in Miscellaneous Application No.158 of 2008 by which judgment and order passed by the Estate Officer in Case Nos.003 and 003A of 2003 dated 18 July 2008 was set aside.

2. The facts set out in the civil revision application revealed that the applicant is a government company wholly owned by the Central Government. Therefore, premises which belongs to the applicant is public premises within the meaning of section 2(e) of the Public Premises (Eviction of Unauthorised Occupants) Act, 1971 (hereafter, "Public Premises Act", for short). The applicant owns a building (residential complex) at Malabar Hill known as Mayfair Gardens.

3. Respondent No.1 is allegedly a sick company. Flat No.A/3 on the 1st Floor of Mayfair Gardens, Malabar Hill, measuring 3252 sq.ft., was given to respondent No.1 on a leave and license basis. The last leave and license agreement was executed with respondent No.1 on 3 March 1995, 5 years from 1 October 1994. The said leave and license agreement expired by efflux of time on 30 September 1999. In December 1999, the applicant communicated to respondent No.1 about the expiry of the license period and demanded possession of premises inter alia on the grounds of the expiry of authority and the applicant's requirement. The applicant issued the last termination notice to respondent No.1 on 18 February 2002 before issuing earlier notices dated 13 December 1999, 9 February 2001, and 2 November 2001. It is necessary to note that the applicant filed the proceedings treating respondent No.1 as a tenant of the premises whose possession became unauthorised due to termination of tenancy and the requirement of own use in the notice.

4. The applicant filed proceedings before respondent No.2 on 16 January 2003 for the eviction of respondent No.1 and for damages under section 8 of the Public Premises Act. Respondent No.2 issued notice under Sections 4 and 7 of the Public Premises Act to respondent No.1 on 21 February 2003.

5. Respondent No.1 filed its written statement. In its reply, he admitted that it occupied the disputed premises as a tenant. It is stated that the Estate Officer had no material in his possession to treat respondent No.1 as an unauthorised occupant. The applicant has waived its right to recover possession by accepting rent from the respondent. It is submitted that in the absence of respondent No.1's capacity as an unauthorised occupant, no damages can be awarded in favour of the applicant.

6. The Estate Officer, after following the procedure and giving the applicant and respondent No.1 an opportunity to be heard, ordered the eviction of respondent No.1, holding him to be an unauthorised occupant as defined under section 2(g) of the Public Premises Act, and awarded damages for unauthorised occupation of the premises vide a judgment dated 18 July 2008.

7. Feeling aggrieved by the order of the Estate Officer, respondent No.1 filed Miscellaneous Appeal No.158 of 2008 before the City Civil Court at Bombay. The City Civil Judge, Greater Bombay, by the impugned judgment, set aside the order of the Estate officer and rejected the applicant's proceedings for eviction against respondent No.1. The applicant has, therefore, assailed the judgment of the City Civil Judge by way of present civil revision application. Respondent No.1 has challenged the findings recorded against him by filing an affidavit-in-reply.

8. I have heard learned Advocates for the parties for quite some time, perused the impugned order and the other material placed before me. At the outset, Mr. Sanglikar learned Advocate for the applicant, submitted that the Appellate Court travelled beyond the scope of inquiry as the Estate Officer had issued a notice under section 4(1) of the Public Premises Act after due application of mind. The applicant h

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