Case Note & Summary
The petitioners, Nikhilesh Keshrichand Jhaveri and others, challenged the judgment and order dated 12 July 2021 passed by the Appellate Bench of Small Causes Court at Mumbai in Revision Application No. 237 of 2015, which confirmed the order dated 15 July 2015 passed by the Small Causes Court in an application at Exhibit 42 filed by the original plaintiffs under Order XV-A of the Code of Civil Procedure, 1908 (CPC), directing the petitioners-defendants to deposit Rs.5,85,80,203/- towards arrears of water charges. The dispute originated from a lease deed dated 23 December 1938, whereby Ardeshir Dadabhoi Baria and Bai Monie Ardeshir Baria granted a 999-year lease of land and building to Tarachand Navalchand Jhaveri and Ratanchand Navalchand Jhaveri. Clause 8 of the lease deed permitted the lessees to create sub-leases for terms not exceeding one year without the lessors' consent. In 1968, a monthly tenancy was created in favor of New Era Textiles Mills Pvt. Ltd., which was later wound up, and its assets were sold to New Era Fabrics Ltd. (NEFL). The Jhaveris filed Suit No. 236 of 1968 for eviction of NEFL, and consent terms were executed recognizing NEFL as a monthly tenant, with NEFL agreeing to pay all rates, taxes, and impositions. NEFL obtained four independent water connections from the Municipal Corporation for Greater Mumbai in its own name. Subsequently, the respondent, M.S. Johnson Dye Works Pvt. Ltd., became the tenant. The trial court allowed the application under Order XV-A CPC for deposit of water charges arrears, which was upheld by the appellate court. The High Court dismissed the petition, holding that the consent terms obligated the tenant to pay water charges, and the lease deed clause regarding lessor's liability did not apply to sub-lessees. The court also held that water charges are 'rent' or 'compensation' for use and occupation under Order XV-A CPC.
Headnote
A) Civil Procedure - Order XV-A CPC - Deposit of arrears - The court considered whether the trial court correctly directed deposit of water charges arrears under Order XV-A CPC - Held that the order was justified as the tenant was liable to pay water charges under the consent terms and the lease deed did not absolve the tenant of such liability (Paras 2-10). B) Landlord and Tenant - Liability for water charges - Interpretation of lease deed and consent terms - The court examined whether the lessor or lessee was responsible for water charges - Held that the consent terms clearly obligated the tenant to pay all rates, taxes, and impositions including water charges, and the lease deed clause regarding lessor's liability did not apply to sub-lessees (Paras 3-8). C) Civil Procedure - Order XV-A CPC - Scope and applicability - The court considered whether Order XV-A CPC could be invoked for recovery of water charges - Held that water charges are 'rent' or 'compensation' for use and occupation, and the provision applies to arrears of such charges (Paras 2-10).
Issue of Consideration
Whether the Appellate Bench of Small Causes Court correctly confirmed the order directing the petitioners-defendants to deposit Rs.5,85,80,203/- towards arrears of water charges under Order XV-A of the Code of Civil Procedure, 1908.
Final Decision
The High Court dismissed the writ petition, upholding the order of the Appellate Bench of Small Causes Court directing the petitioners-defendants to deposit Rs.5,85,80,203/- towards arrears of water charges under Order XV-A CPC.
Law Points
- Order XV-A CPC
- liability of tenant for water charges
- interpretation of lease covenants
- consent terms binding on parties
- arrears of water charges
- jurisdiction of Small Causes Court
