Bombay High Court Dismisses Revision and Writ Petition in Lease Dispute — Possession Rights Determined by Eviction Order Under Maharashtra Rent Control Act. The court upheld the eviction of the licensee and vacated the temporary injunction, finding the alleged lease deed unregistered and not credible.

High Court: Bombay High Court In Favour of Prosecution
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Case Note & Summary

The case involves a dispute over possession of a flat in Mumbai. The Revision Applicant, Ganesh Arjun Chukkal, is a director of Brice Infrastructure & Development Pvt. Ltd. (Brice), which entered into a leave and license agreement with Melronia Hospitality Private Limited (Melronia) on 19 June 2018 for a period of 36 months. Ganesh Chukkal occupied the flat as a director of Brice. He claimed that Melronia executed an unregistered lease deed in his favour on 8 March 2019 for 30 years, based on an earlier agreement dated 19 February 2004 with Lake View Developers. Melronia terminated the license on 10 January 2020 and filed an eviction application under Section 24 of the Maharashtra Rent Control Act, 1999. The Competent Authority ordered eviction of Brice on 23 November 2021, which was upheld by the Additional Commissioner on 14 June 2022 and review rejected on 13 March 2023. Meanwhile, Ganesh Chukkal filed a declaratory suit (L.D. Suit No.80 of 2022) claiming to be a lessee and obtained a temporary injunction on 30 September 2022, which was later vacated by the Appellate Bench on 30 January 2024. The High Court heard both the Civil Revision Application against the vacation of injunction and the Writ Petition challenging the eviction orders. The court held that the eviction order against Brice was valid and binding, and Ganesh Chukkal's claim of lease was not credible. The court dismissed both the Revision Application and the Writ Petition, upholding the eviction and vacation of injunction.

Headnote

A) Rent Control - Eviction of Licensee - Section 24 of Maharashtra Rent Control Act, 1999 - Competent Authority's eviction order upheld - The licensee (Brice) failed to vacate after expiry of leave and license agreement; Competent Authority directed eviction and payment of damages. Revisional Authority confirmed the order. Held that the licensee's possession became unauthorized after termination of license (Paras 1-4).

B) Civil Procedure - Rejection of Plaint - Order VII Rule 11 of Code of Civil Procedure, 1908 - Suit for declaration of lease - The Trial Court rejected the application for rejection of plaint, but the Appellate Bench vacated the temporary injunction. Held that the lease deed dated 8 March 2019 was unregistered and its validity was doubtful (Paras 5-6).

C) Property Law - Lease vs. License - Distinction - The alleged lease deed was executed after the leave and license agreement, and the licensee's possession was through the company. Held that the claim of lease was not supported by credible evidence and the eviction order against the licensee bound the occupant (Paras 7-10).

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Issue of Consideration

Whether the Revision Applicant (Ganesh Chukkal) has a right to retain possession of the flat based on an alleged lease deed dated 8 March 2019, and whether the eviction order against the licensee (Brice) is valid.

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Final Decision

The High Court dismissed both the Civil Revision Application and the Writ Petition, upholding the eviction order and the vacation of the temporary injunction.

Law Points

  • Leave and license agreement
  • Eviction under Section 24 of Maharashtra Rent Control Act
  • 1999
  • Lease deed validity
  • Temporary injunction
  • Order VII Rule 11 CPC
  • Revision under Section 44 of MRC Act
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Case Details

2024 LawText (BOM) (10) 2535

Civil Revision Application No.96 of 2024 and Writ Petition No.1847 of 2024

2024-10-17

Sandeep V. Marne

2024:BHC-AS:41883

Mr. A.Y. Sakhare, Senior Advocate with Mr. Laxman R. Shahapur, Mr. Viraj V. Kadam, Mr. Rohan and Mr. Rohit Mishra for Applicant in CRA and for Petitioner in WP; Mr. Girish S. Godbole with Mr. Yash Momeya i/b. Mr. Nikhil Ranadive for Respondent in CRA and WP

Ganesh Arjun Chukkal (in CRA) and Brice Infrastructure & Development Pvt. Ltd. (in WP)

Melronia Hospitality Private Limited

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Nature of Litigation

Civil Revision Application against vacation of temporary injunction and Writ Petition challenging eviction order under Maharashtra Rent Control Act.

Remedy Sought

Ganesh Chukkal sought restoration of temporary injunction restraining Melronia from interfering with his possession; Brice sought quashing of eviction orders.

Filing Reason

Ganesh Chukkal claimed to be a lessee under an unregistered lease deed dated 8 March 2019; Brice challenged eviction after expiry of leave and license agreement.

Previous Decisions

Competent Authority ordered eviction of Brice on 23 November 2021; Revisional Authority dismissed revision on 14 June 2022 and review on 13 March 2023; Trial Court granted temporary injunction on 30 September 2022; Appellate Bench vacated injunction on 30 January 2024.

Issues

Whether the alleged lease deed dated 8 March 2019 creates a valid lease in favour of Ganesh Chukkal. Whether the eviction order against Brice is valid and binding on Ganesh Chukkal. Whether the Appellate Bench correctly vacated the temporary injunction.

Submissions/Arguments

Applicant/Petitioner argued that the lease deed was valid and that Ganesh Chukkal was a lessee, not a licensee, and thus entitled to possession. Respondent argued that the lease deed was unregistered and a sham, and that the eviction order against Brice was final and binding.

Ratio Decidendi

The eviction order against the licensee (Brice) under Section 24 of the Maharashtra Rent Control Act is final and binding on the occupant (Ganesh Chukkal) who claims through the licensee. An unregistered lease deed cannot override the eviction order, and the claim of lease is not credible in the absence of registration and payment of stamp duty.

Judgment Excerpts

The issue involved in the Revision Application and Writ Petition is about right of the Revision Applicant and Writ Petitioner to retain possession of the flat in question. Upon expiry of license on 19 April 2020, the Competent Authority directed eviction of Brice from the flat by order dated 23 November 2021, which order is upheld by Additional Commissioner, Konkan Division on 13 March 2023.

Procedural History

Melronia filed Eviction Application No.51 of 2021 before Competent Authority under Section 24 of MRC Act; Competent Authority ordered eviction on 23 November 2021; Brice filed Revision under Section 44, dismissed on 14 June 2022; Review rejected on 13 March 2023; Ganesh Chukkal filed L.D. Suit No.80 of 2022 and obtained temporary injunction on 30 September 2022; Melronia filed Miscellaneous Appeal No.15 of 2023; Appellate Bench vacated injunction on 30 January 2024; Ganesh Chukkal filed CRA No.96 of 2024; Brice filed WP No.1847 of 2024.

Acts & Sections

  • Maharashtra Rent Control Act, 1999: Section 24, Section 44
  • Code of Civil Procedure, 1908: Order VII Rule 11
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