Bombay High Court Dismisses Tenant's Petition in Rent Act Suit — Leave and License Agreement Not a Camouflage. Court upholds Small Causes Court's finding that no landlord-tenant relationship existed between plaintiff and defendant under Bombay Rent Act, 1947.

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

The petitioner, Dinesh Vasantrai Bhuta, filed a writ petition challenging the judgment and decree passed by the Appellate Bench of the Small Causes Court at Bombay in Appeal No. 569 of 2003, which confirmed the decree of dismissal of RAD Suit No. 35 of 1998. The petitioner was the original plaintiff in the suit, claiming to be a monthly tenant of the respondent, Mrs. Vasantben Harvilas Jani, in respect of a flat on the ground floor of 'Asmita' building at Vile Parle (W), Mumbai. The plaintiff alleged that the premises were let out to him in 1969 at a rent of Rs. 1,300 per month, but the defendant suggested showing lower rent to avoid higher property tax and created a Leave and License Agreement dated 4th November, 1969, showing one Mr. Fulshankar L. Joshi as the licensor and the plaintiff as a licensee, which the plaintiff claimed was a camouflage. The defendant filed a written statement denying any privity of contract and contending that the plaintiff was neither a tenant nor a licensee of the defendant. The trial court dismissed the suit, and the appellate court confirmed the dismissal. The High Court, after hearing arguments, held that the plaintiff failed to discharge the burden of proving that the Leave and License Agreement was a camouflage and that he was a tenant of the defendant. The court noted that the findings of fact by the lower courts were based on evidence and not perverse, and therefore declined to interfere under Article 227 of the Constitution. The writ petition was dismissed with no order as to costs.

Headnote

A) Rent Control - Tenancy - Burden of Proof - Bombay Rent Act, 1947, Section 28 - The plaintiff claimed to be a monthly tenant of the defendant, but the defendant contended that there was no privity of contract and that the plaintiff was a licensee under an agreement with a third party. The court held that the plaintiff failed to discharge the burden of proving that the Leave and License Agreement was a camouflage and that he was a tenant of the defendant. (Paras 3-5)

B) Rent Control - Leave and License Agreement - Camouflage - Bombay Rent Act, 1947, Section 28 - The plaintiff alleged that the Leave and License Agreement was created as a camouflage to show lower rent and avoid higher property tax. The court found that the plaintiff did not provide sufficient evidence to prove that the agreement was a sham or that the defendant was the real landlord. (Paras 3-4)

C) Civil Procedure - Writ Petition - Interference with Findings of Fact - The High Court declined to interfere with the concurrent findings of fact by the trial court and the appellate court, as the findings were based on evidence and not perverse. (Para 5)

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Issue of Consideration

Whether the Leave and License Agreement dated 4th November, 1969 was a camouflage for a tenancy and whether the plaintiff was a tenant of the defendant under the Bombay Rent Act, 1947.

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Final Decision

The writ petition is dismissed. Rule is discharged. No order as to costs. Civil Application No. 956 of 2011 is disposed of accordingly.

Law Points

  • Burden of proof on plaintiff to establish tenancy
  • Leave and License Agreement as camouflage
  • Privity of contract
  • Section 28 of Bombay Rent Act
  • 1947
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Case Details

2011 LawText (BOM) (11) 27

WRIT PETITION NO.3190 OF 2011 WITH CIVIL APPLICATION NO.956 OF 2011

2011-11-14

G.S. Godbole, J.

Mr. Andhyarjuna along with Mr. Devrat Dharkar i/b. Mr. Parag Sharma, for the Applicant; Mr. Kamal Katha along with Mr. A. K. S. Vani i/b. M.L.S. Vani & Associates, for the Respondent

Dinesh Vasantrai Bhuta

Mrs. Vasantben Harvilas Jani

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Nature of Litigation

Civil writ petition challenging the dismissal of a suit for declaration of tenancy and other reliefs under the Bombay Rent Act, 1947.

Remedy Sought

The petitioner sought to set aside the judgment and decree of the Appellate Bench of the Small Causes Court and to restore the suit with a declaration that he is a tenant of the respondent.

Filing Reason

The petitioner claimed that the Leave and License Agreement was a camouflage and that he was a monthly tenant of the respondent, but the lower courts dismissed his suit.

Previous Decisions

The trial court dismissed RAD Suit No. 35 of 1998, and the Appellate Bench of the Small Causes Court confirmed the dismissal in Appeal No. 569 of 2003.

Issues

Whether the Leave and License Agreement dated 4th November, 1969 was a camouflage for a tenancy? Whether the plaintiff was a tenant of the defendant under the Bombay Rent Act, 1947?

Submissions/Arguments

The petitioner argued that the Leave and License Agreement was a camouflage to show lower rent and avoid higher property tax, and that he was a tenant of the respondent. The respondent contended that there was no privity of contract between the plaintiff and the defendant, and that the plaintiff was a licensee under an agreement with Mr. Fulshankar Joshi.

Ratio Decidendi

The plaintiff failed to discharge the burden of proving that the Leave and License Agreement was a camouflage and that he was a tenant of the defendant. The findings of fact by the lower courts were based on evidence and not perverse, hence no interference under Article 227 of the Constitution.

Judgment Excerpts

It is the case of the Plaintiff that he is the monthly tenant of the Defendant/ Landlord in respect of the flat admeasuring 2121 sq. feet on the ground floor of the building known as 'Asmita' at Vile Parle (W), Bombay. The Defendant filed Written Statement in the said suit on 11th August, 1998 and in respect of the aforesaid Leave and License Agreement, the Defendant contended that there was no privity of contract between the Plaintiff and the Defendant that the Plaintiff is neither the tenant or subtenant nor a Licensee of the Defendant.

Procedural History

The petitioner filed RAD Suit No. 35 of 1998 in the Court of Small Causes at Mumbai under Section 28 of the Bombay Rent Act, 1947. The suit was dismissed. The petitioner appealed to the Appellate Bench of the Small Causes Court in Appeal No. 569 of 2003, which confirmed the dismissal. The petitioner then filed the present writ petition under Article 227 of the Constitution.

Acts & Sections

  • Bombay Rent Act, 1947: Section 28
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