Bombay High Court Quashes Eviction Order Against Tenant in Public Premises Act Case — Landlord Failed to Prove Unauthorised Occupation. Sub-tenancy Allegation Not Established as Occupant Was a Retired Partner with Permissive User Under Consent Terms, Not a Sub-tenant Under Section 4 of the Public Premises (Eviction of Unauthorised Occupants) Act, 1971.

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

The case involves a writ petition filed by M/s. Little & Co., a partnership firm of advocates and solicitors, and its partners, challenging an eviction order passed by the Estate Officer under the Public Premises (Eviction of Unauthorised Occupants) Act, 1971. The First Petitioner had been a tenant of the Central Bank of India (Second Respondent) since 1923 in premises at Central Bank Building, Fort, Mumbai. In 1961, consent terms were entered into in a suit between the partners, under which the Third Respondent (a retired partner) was allowed to use a portion of the premises as long as he continued to practice as a lawyer. In 2007, the landlord terminated the tenancy and sought eviction, alleging that the Third Respondent was a sub-tenant in unauthorised occupation. The Estate Officer ordered eviction, which was challenged. The High Court examined whether the Third Respondent's occupation constituted unauthorised occupation under the Act. The Court held that the Third Respondent was not a sub-tenant but a licensee with permissive user under the consent terms, and therefore the Petitioners were not in unauthorised occupation. The eviction order was quashed, and the petition was allowed.

Headnote

A) Public Premises Act - Unauthorised Occupation - Section 4 of the Public Premises (Eviction of Unauthorised Occupants) Act, 1971 - The Estate Officer ordered eviction of the Petitioners on the ground that the Third Respondent was a sub-tenant in unauthorised occupation. The High Court held that the Third Respondent's occupation was permissive under the Consent Terms, not as a sub-tenant, and therefore the Petitioners were not in unauthorised occupation. The eviction order was quashed. (Paras 1-10)

B) Partnership Law - Consent Terms - Retired Partner's Right to Use Premises - Clause 17 of Consent Terms dated 17 October 1961 - The Third Respondent, a retired partner, was entitled to use a portion of the premises as long as he practiced as a lawyer. The Court held that this was a personal right and did not create a sub-tenancy. The landlord's consent was not required for such permissive user. (Paras 2-8)

C) Public Premises Act - Sub-tenancy - Section 4 of the Public Premises (Eviction of Unauthorised Occupants) Act, 1971 - The Court held that the Third Respondent was not a sub-tenant but a licensee with permissive user. The Estate Officer erred in treating him as a sub-tenant and ordering eviction. The Petitioners' tenancy was not terminated validly as the occupation was not unauthorised. (Paras 5-10)

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Issue of Consideration

Whether the occupation of the premises by the Third Respondent, a retired partner of the Petitioner firm, under Clause 17 of the Consent Terms, constitutes unauthorised occupation under the Public Premises (Eviction of Unauthorised Occupants) Act, 1971, and whether the Estate Officer had jurisdiction to order eviction.

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Final Decision

The High Court allowed the writ petition, quashed the eviction order passed by the Estate Officer, and held that the Petitioners were not in unauthorised occupation.

Law Points

  • Public Premises Act
  • 1971
  • Section 4
  • Unauthorised occupation
  • Sub-tenancy
  • Consent Terms
  • Partnership
  • Permissive user
  • Eviction
  • Estate Officer jurisdiction
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Case Details

2010 LawText (BOM) (09) 29

WRIT PETITION NO.747 OF 2010

2010-09-06

DR. D.Y. CHANDRACHUD, SMT. R.P. SONDURBALDOTA

Mr. Fredune Devitre, Sr. Advocate, Mr. Rafique Dada, Sr. Advocate, Mr. Jimmy Avasia, Mr. Akshay Patil, Mr. Sumit Raghani

M/s. Little & Co. & Anr.

Estate Officer & Ors.

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Nature of Litigation

Writ petition challenging eviction order under the Public Premises (Eviction of Unauthorised Occupants) Act, 1971.

Remedy Sought

Petitioners sought quashing of the eviction order passed by the Estate Officer.

Filing Reason

The Estate Officer ordered eviction of the Petitioners on the ground that the Third Respondent was a sub-tenant in unauthorised occupation.

Previous Decisions

The Estate Officer passed an eviction order under the Public Premises Act.

Issues

Whether the occupation of the premises by the Third Respondent under the Consent Terms constitutes unauthorised occupation under the Public Premises Act. Whether the Estate Officer had jurisdiction to order eviction.

Submissions/Arguments

Petitioners argued that the Third Respondent was not a sub-tenant but a licensee with permissive user under the Consent Terms, and therefore the Petitioners were not in unauthorised occupation. Respondents argued that the Third Respondent was a sub-tenant and the Petitioners were in unauthorised occupation.

Ratio Decidendi

The occupation of the Third Respondent under the Consent Terms was permissive and did not create a sub-tenancy. Therefore, the Petitioners were not in unauthorised occupation under the Public Premises Act, and the Estate Officer's eviction order was invalid.

Judgment Excerpts

The First Petitioner which is a partnership firm of Advocates and Solicitors, obtained under an agreement dated 5 July 1923, premises situated on the third floor of what is known as Central Bank Building at Fort, Mumbai, from the predecessor in interest of the Second Respondent. Under the Consent Terms, the Third Respondent was treated to have retired from the partnership firm. Clause 17 of the Consent Terms provided that the Third Respondent, so long as he continued to practice as a Lawyer, would be entitled to use a portion of the premises... The Court held that the Third Respondent was not a sub-tenant but a licensee with permissive user under the consent terms, and therefore the Petitioners were not in unauthorised occupation.

Procedural History

The tenancy was terminated on 7 June 2007. In July 2007, an application was moved before the Estate Officer for eviction. The Estate Officer passed an eviction order. The Petitioners filed a writ petition in the High Court challenging the order.

Acts & Sections

  • Public Premises (Eviction of Unauthorised Occupants) Act, 1971: Section 4
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