IN THE HIGH COURT OF JUDICATURE AT BOMBAY
R.I. CHAGLA, J.
Sea Star Habitat Private Limited - Plaintiff
Versus
Jean Genevieve alias Jean Vinay Kalgutkar and Others - Defendants
Interim Application (L) No. 38124 of 2024, Suit No. 1446 of 2006
Decided On : 24-04-2025
(A) Specific Relief Act, 1963 - Section 19(b) - Transfer of Property Act, 1882 - Section 52 - Interim injunction sought by Plaintiffs against Defendants regarding leasehold property - Plaintiffs alleged gross delay in seeking interim relief after 18 years - Court found no merit in Plaintiffs' claims, emphasizing that the Title Certificate issued was deemed acceptance of title, and Plaintiffs failed to prove readiness and willingness to perform the contract. (Paras 1, 89, 96, 102)
(B) Delay and Laches - The Court held that the Plaintiffs' inaction for 18 years constituted a conscious decision not to seek interim relief, thus precluding them from claiming such relief after significant developments had occurred. (Paras 90, 101)
Facts of the case:
The Plaintiffs sought an injunction to maintain status quo on a property after a long delay, despite being aware of the Defendants' actions to terminate the agreement and sell the property to a third party. The Defendants had issued a termination notice and sold the property to a third party, Defendant No. 3, who had made substantial investments. (Paras 1, 89, 90)
Findings of Court:
The Court found that the Plaintiffs had not acted promptly to protect their interests and had failed to establish a prima facie case for the injunction sought. The Title Certificate issued by the Defendants was deemed sufficient for the Plaintiffs to proceed with payment obligations. (Paras 89, 96)
Issues: The main issues included whether the Plaintiffs had shown readiness and willingness to perform the contract and whether the delay in seeking interim relief affected their claims. (Paras 90, 102)
Ratio Decidendi: The Court ruled that the Plaintiffs' delay in seeking relief and their failure to challenge the termination notice indicated a lack of urgency and commitment to their claims, undermining their request for an injunction. (Paras 90, 102)
Result: Interim Application rejected.
ORDER :
1. By this Interim Application, the Applicant/Original Plaintiff No.1 has sought an order of injunction directing the Defendants to maintain status-quo in respect of the leasehold property consisting of land with buildings thereon situate at 47, Nair Road, Agripada, Mumbai Central consisting of land admeasuring about 1458.19 sq.mtrs. forming part of Plot Nos. 70 and 70A of Agripada Estate of the Municipal Corporation of Greater Mumbai, Cadastral Survey No.1605 of Byculla Division, Mumbai together with the benefit of land admeasuring about 236 sq.mtrs. taken away in road widening (hereinafter referred to as “the said property”). Further, order of injunction is sought restraining the Defendants from acting in pursuance / furtherance of the Alleged / Purported Assignment Deed dated 6th August, 2023 (Exhibit ‘G’ to the Plaint) and / or claiming / asserting any rights / claims thereunder.
Consequential relief has been sought in respect of the said property.
2. A brief background of facts is necessary as under:
(i) One Dr. Patrao and his wife Mrs. Patrao were lessees of a Larger Property admeasuring 2346 sq. yards equivalent to 1962.39 sq. mtrs. bearing C.S. No.1629 of Byculla Division situate at Plot No.70, Agripada West Estate, Mumbai – 400 011. The said Dr. Patrao and Mrs. Patrao had two daughters, viz. Jean Jenevive who married one Vinay Kalgutkar (hereinafter called as “Kalgutkars”) (Defendant Nos.1 and 2 herein) and another daughter named Jennifer who is married to one Saeed Mirza (hereinafter called as “Mirzas”). M.C.G.M. is the owner/Lessor of the Property.
(ii) By two Wills dated 3rd June, 1977 and 13th June, 1977 the said Dr. Patrao and his wife Mrs. Patrao bequeathed the North Wing property and structures standing thereon to the Defendant Nos.1 and 2 and the South Wing Property and structures standing thereon to the Mirzas. Both Wills were probated. At all relevant times both Defendant Nos.1 and 2 and Mirzas accepted such bequest of the North and South Wings respectively having no dispute thereon.
(iii) A Registered Transfer Deed dated 24th November, 1999 was executed by the Executors of the said Wills, whereby the North Wing Property, Boundary of land shown in Blue colour Boundary lines and structures standing therein marked in purple colour boundary lines in the plan annexed to the Deed of Transfer and as mentioned firstly in Second Schedule therein (North Wing Property) was transferred to Defendant Nos.1 and 2. The South Wing Property, boundary of land shown in red colour boundary lines and structure standing therein shown in yellow colour boundary in the plan annexed to the Deed of Transfer and as mentioned secondly in second schedule of the Transfer Deed (South Wing Property) was transferred to the Mirzas.
(iv) A Survey Plan dated 13th October, 2000 was prepared of the Survey measurement of the Larger Property. The survey had been conducted by Surveyor P. N. Shidhore & Co. The Survey Plan shows the North Wing Property as “Property A” admeasuring 15696.177 sq. ft. equivalent to 1458.10 sq. mtrs. (84% of the Larger Property) and the South Wing Property shown as “Property B” being 2892.411 sq. ft. equivalent to 268.791 sq.mtrs (16% of the Larger Property). This Survey Measurement Plan was accepted by both Defendant Nos. 1 & 2 as well as by the Mirzas.
(v) By a registered Deed of Assignment dated 1st February, 2005, Mirzas sold the South Wing Property alongwith structures admeasuring 5596 sq. ft. carpet area described in the Second Schedule therein to one Dukanwalla Estates Private Limited (hereinafter referred to as “Dukanwala”) for a sum of Rs.2,40,00,000/-.
(vi) The Memorandum of Understanding (“MoU”) dated 20th October 2005 was executed between the Plaintiffs and Defendant Nos.1 and 2 for sale of the North Wing property (referred to as “the Suit property”) for an amount of Rs.10,68,00,000/-. An advance payment of Rs.85 Lakh was paid by the Plaintiffs at the time of execution of the said MoU. The said MoU provided that
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