Bombay High Court Allows Appeal Against Refusal of Injunction in Demolition Case — Municipal Corporation's Notice Under Section 354A of MMC Act, 1988 Challenged. Court Held That Trial Court Erred in Not Considering Prima Facie Case and Balance of Convenience, and Directed Status Quo Pending Suit.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The appellant, Sandesh Sonu Gawalkar, filed a civil appeal against an order dated 24 June 2022 passed by the City Civil Court, which refused to grant an ad-interim injunction against a demolition notice issued by the Municipal Corporation of Greater Mumbai (MCGM) under Section 354A of the Mumbai Municipal Corporation Act, 1988. The appellant claimed ownership and possession of a suit structure at Worli Koliwada, Mumbai, and alleged that he had carried out only tenantable repairs. The MCGM issued a notice alleging unlawful construction. The trial court declined interim relief, leading to the appeal. The High Court examined the facts and found that the trial court had not properly considered the appellant's prima facie case, balance of convenience, and the likelihood of irreparable loss. The High Court held that the appellant had made out a strong prima facie case for grant of injunction, as the notice did not specify the exact nature of the alleged unlawful work, and the appellant's claim of ownership and possession was supported by documents. The balance of convenience was in favor of granting injunction to prevent demolition pending suit, as the respondent could be compensated by damages if the suit failed. The High Court allowed the appeal, set aside the trial court's order, and directed the parties to maintain status quo in respect of the suit structure until the disposal of the suit. The court also directed the trial court to dispose of the suit expeditiously.

Headnote

A) Civil Procedure - Ad-interim Injunction - Prima Facie Case - Order 39 Rules 1 and 2 of Code of Civil Procedure, 1908 - The trial court refused ad-interim relief against demolition notice under Section 354A of the Mumbai Municipal Corporation Act, 1988, without considering the appellant's claim of ownership and possession. The High Court held that the trial court failed to apply the correct legal principles and that the appellant had made out a prima facie case for grant of injunction. (Paras 1-10)

B) Municipal Law - Demolition Notice - Section 354A of Mumbai Municipal Corporation Act, 1988 - The notice alleged unlawful construction, but the appellant claimed tenantable repairs. The High Court noted that the trial court did not examine the nature of the work or the appellant's title. The balance of convenience was in favor of granting injunction to prevent irreparable loss. (Paras 2-10)

C) Civil Procedure - Balance of Convenience - Irreparable Loss - The High Court found that the appellant would suffer irreparable loss if the structure was demolished pending suit, and the respondent could be compensated by damages. The court directed status quo to be maintained. (Paras 8-10)

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Issue of Consideration

Whether the trial court erred in refusing to grant ad-interim injunction against demolition notice under Section 354A of the Mumbai Municipal Corporation Act, 1988, pending disposal of the suit.

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Final Decision

Appeal allowed. Order dated 24 June 2022 passed by the City Civil Court is set aside. The parties are directed to maintain status quo in respect of the suit structure until disposal of the suit. The trial court is directed to dispose of the suit expeditiously.

Law Points

  • Section 354A of Mumbai Municipal Corporation Act
  • 1988
  • Ad-interim injunction
  • Prima facie case
  • Balance of convenience
  • Irreparable loss
  • Order 39 Rules 1 and 2 CPC
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Case Details

2023 LawText (BOM) (09) 51

Appeal from Order No. 686 of 2022 with Interim Application No. 10271 of 2022

2023-09-04

Sandeep V. Marne

2023:BHC-AS:25656

Ashok M. Sarogi for Appellant, Smita Tondwalkar for Respondent-MCGM

Sandesh Sonu Gawalkar

Municipal Corporation, Gr. Mumbai

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Nature of Litigation

Civil appeal against refusal of ad-interim injunction in a suit challenging demolition notice under municipal law.

Remedy Sought

Appellant sought ad-interim injunction restraining respondent from demolishing part of suit structure pursuant to notice dated 26 February 2022.

Filing Reason

Appellant claimed ownership and possession of suit structure and alleged that the demolition notice was unlawful as he had only carried out tenantable repairs.

Previous Decisions

City Civil Court refused ad-interim relief by order dated 24 June 2022.

Issues

Whether the trial court erred in refusing to grant ad-interim injunction against demolition notice under Section 354A of the Mumbai Municipal Corporation Act, 1988. Whether the appellant made out a prima facie case, balance of convenience, and irreparable loss for grant of injunction.

Submissions/Arguments

Appellant argued that he is the owner and in possession of the suit structure, and the notice was issued without proper inquiry as he had only carried out tenantable repairs. Respondent argued that the appellant had unlawfully commenced construction and the notice was validly issued under Section 354A of the MMC Act.

Ratio Decidendi

The trial court failed to consider the appellant's prima facie case, balance of convenience, and irreparable loss. The appellant's claim of ownership and possession, coupled with the lack of specificity in the demolition notice, warranted grant of ad-interim injunction to prevent irreparable harm pending suit.

Judgment Excerpts

By this appeal, Appellant challenges order dated 24 June 2022 passed by the City Civil Court refusing to grant ad-interim relief of injunction against Notice dated 26 February 2022 for demolition of part of suit structure. The Designated Officer of G/South Ward of Municipal Corporation of Greater Mumbai issued Notice dated 26 February 2022 under provisions of Section 354A of the Mumbai Municipal Corporation Act 1988 to Appellant-Plaintiff alleging that he had unlawfully commenced and was unlawfully carrying on work described in the Schedule to the notice.

Procedural History

The appellant filed a suit in the City Civil Court seeking injunction against demolition. The trial court refused ad-interim relief on 24 June 2022. The appellant filed the present appeal against that order. The High Court heard the appeal and pronounced judgment on 4 September 2023.

Acts & Sections

  • Mumbai Municipal Corporation Act, 1988: 354A
  • Code of Civil Procedure, 1908: Order 39 Rules 1 and 2
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