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2026 Supreme(Bom) 593

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
M.M. Sathaye, J.
M/S. Sharan Builders - Petitioners
Versus
Smt. Pushpa Narain Kanugo, (Widow & LR of Narain B. Kanugo Since deceased) - Respondents
Writ Petition No. 5608 of 2005 With Interim Application (Stamp) No. 1394 of 2026
Decided On : 09-06-2026

Advocates Appeared:
For the Petitioner: Mr. Jaydeep S. Deo a/w Mr. Onkar Gawade
For the Respondent: Mr. Bernardo Reis a/w Mr. Pratik Dixit i/b Mr. Prashant Dingrani

In eviction proceedings governed by rent control laws, a landlord need not prove absolute title, only the right to possession. A licensee is estopped under Section 116 of the Evidence Act from questioning the licensor's title after admitting to the induction into the premises.

Headnote:(A) Presidency Small Cause Courts Act, 1882 - Section 41 - Indian Evidence Act, 1872 - Section 116 - Eviction suit - Landlord-Tenant relationship - Locus standi - Challenge to title - Estoppel. In eviction proceedings under rent laws, the standard of proof of ownership is not identical to that in a title suit; a landlord is only required to demonstrate a legal right to evict and maintain control of the premises (Paras 22, 23).

(B) Estoppel - Section 116 of Indian Evidence Act - A party inducted into possession of property is barred from challenging the title or the authority of the entity that granted such possession, especially when such admissions are made in the pleadings. Such an objection cannot be raised to defeat an eviction claim after the licensee enjoyed the premises (Paras 20, 25).

(C) Partnership - Legal Status - A partnership firm does not possess an independent legal identity distinct from its partners; a suit maintained by a firm and its partners remains maintainable if one partner passes away, provided active partners remain on record to prosecute the claim (Paras 13, 43).

Facts of the case:
A partnership firm and one of its partners filed a suit for eviction against a licensee after the expiry of a leave and license agreement. The trial and appellate courts dismissed the suit on the grounds that the death of one partner, without bringing legal heirs on record, caused the suit to abate, and questioned the locus standi of the firm to claim ownership.

Findings of Court:
The court found the lower courts' dismissal perverse as they erroneously applied standards required for title suits instead of rent control litigation. The court noted that the defendant had clearly admitted being inducted by the plaintiffs and held that the defendant was estopped from challenging the plaintiffs' title.

Issues: The main issues were whether a partnership firm has the locus standi to maintain an eviction suit upon the death of one partner when other partners are on record, and whether a licensee can challenge the licensor's title after admitting the induction.

Ratio Decidendi: The law of estoppel under the Evidence Act prohibits a licensee from questioning the licensor's title after having been inducted by them. The court emphasized that in rent control proceedings, proving absolute title is not a condition precedent, and a partnership firm's claim remains valid if surviving partners are prosecuting the litigation.

Result: Appeal allowed; suit decreed; eviction ordered.

Table of Content
1. factual background involving suit for eviction and license disputes. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11)
2. arguments concerning locus standi of non-owner firm in eviction proceedings. (Para 12 , 13)
3. estoppel prevents licensees from challenging the licensor's title. (Para 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21)
4. eviction suits are distinct from title suits; landlord's title not strictly at issue. (Para 22 , 23 , 24 , 25 , 26 , 27 , 28)
5. perverse appreciation of evidence by lower courts regarding ownership. (Para 29 , 30 , 31 , 32 , 33)
6. applicability of section 116 of evidence act over statutory explanation bars. (Para 34 , 35 , 36 , 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44)
7. court order directing eviction and commencement of mesne profits inquiry. (Para 45 , 46)

JUDGMENT :

M.M. Sathaye, J.

1. The Petitioner is Original Plaintiff No.1/licensor and Respondents are legal heirs of original Defendant / licensee. The Petition is filed challenging impugned judgment and decree dated 08.04.2005 passed by the Appellate Bench of the Small Causes Court at Mumbai, at Bandra in Appeal No. 166 of 2002. By this judgment and decree, the Appeal filed by the Petitioner is dismissed, thereby confirming the judgment and decree dated 30.04.2002 passed by the Small Causes Court at Mumbai in L.E. & C. Suit No. 247/338 of 1978. The Trial Court has dismissed the suit for eviction and compensation and the dismissal is confirmed in the Appeal.

2. The Petitioner and one of its partners Mr. T. M. Chandiramani filed the said suit under Section 41 of the Presidency Small Cause Courts Act, 1882, (‘PSCC Act’ for short). The suit is filed seeking vacant and peaceful possession of the suit premises as well as for compensation from original Defendant-licensee.

3. The case of the Plaintiffs is as under. That, Plaintiffs are owners of suit flat bearing No. 14/C, on the First Floor, of Cozihom Co-operative Housing Society Limited, Pali Hill, Bandra Mumbai– 400 050. That Plaintiff No.1 is a registered partnership firm and Plaintiff No.2 was a partner at the relevant time. That Defendant approached one of the partners of Plaintiff No.1 (R. L. Ramchandani) to allow him to occupy the suit flat for short period because the Defendant’s flat - C/81 in the same building, was in occupation of tenant. Defendant informed Mr. Ramchandani that he was taking steps to get his flat - C/81 vacated and assured Mr. Ramchandani that Defendant wanted the suit flat only for temporary accommodation for a short period and he will vacate the same on a short notice. Relying on such assurances, the partnership firm -Plaintiff No.1 along with its partner Plaintiff No. 2 allowed the Defendant to occupy the suit flat as a licensee. Initially the said flat was given to one Mr. T. Kiyosi at the request of the Defendant on leave and licence for monthly licence fee of Rs. 950/- for a period of 11 months. The said Mr. T. Kiyosi handed over the possession of the flat before expiry of licence period and thereafter, at the request of the Defendant, the licence fee was reduced from Rs.950/- to Rs.600 /-per month and it was given on leave and licence basis to Defendant. An agreement dated 01.11.1975 was executed between Plaintiff No.2 (Mr. T. M. Chandiramani) and the Defendant and under the said agreement both the Plaintiffs i.e. the partnership firm and its partner Mr. T. M. Chandiramani permitted the Defendant to occupy the suit flat on leave and licence basis. That licence period expired on 01.10.1976 and the Plaintiffs by their Advocate’s letter/notice dated 12.01.1978 terminated the licence and called upon the Defendant to handover vacant and peaceful possession of the suit flat and pay arrears of compensation. That the Defendant by its Advocate’s letter/reply dated 12.04.1978 raised false grounds contending that he and his wife are in possession of the suit flat as joint tenants since prior to 01.11.1975. By Advocate’s letter dated 24.04.1978, the Plaintiffs again call

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