Case Note & Summary
The petitioner, Suhas Janardan Chavan, proprietor of M/s. Suhas Hydro Systems, was a licensee of an industrial shed admeasuring 4000 sq. ft. under a leave and license agreement dated 1st October 1998 with the predecessor of the respondent licensor, Rajesh Housing Pvt. Ltd. The agreement provided for renewal for seven terms of five years each, totaling 42 years, with a monthly rent of Rs. 6000 and a refundable deposit of Rs. 34,00,000. In 2008, the original licensor filed L.E. Suit No.71/84 of 2008 seeking eviction on the ground that the licensee did not come forward to renew the license despite the licensor's readiness. The trial court decreed eviction on 15th April 2013. The licensee appealed under Section 34 of the Presidency Small Cause Courts Act, 1882 before the Appellate Bench of the Small Cause Court, Mumbai. The Appellate Bench invoked Order 41 Rule 5 of the Code of Civil Procedure, 1908, and the matter was heard. The High Court, in the present writ petition, considered whether the licensee was entitled to any relief. The court held that the licensee had failed to renew the agreement despite the licensor's readiness, and thus the eviction decree was justified. The writ petition was dismissed, and the eviction was upheld.
Headnote
A) Property Law - Leave and License - Eviction Decree - Licensee failed to renew license agreement despite licensor's readiness - Eviction decree upheld - Held that licensee cannot claim protection after expiry of license term (Paras 1-3).
Issue of Consideration
Whether the licensee is entitled to protection against eviction when the license period has expired and the licensee failed to renew despite the licensor's readiness.
Final Decision
Writ petition dismissed; eviction decree upheld.
Law Points
- Leave and license agreement
- eviction decree
- renewal of license
- Order 41 Rule 5 CPC
- Section 34 Presidency Small Cause Courts Act
- 1882
Case Details
2019 LawText (BOM) (08) 66
Writ Petition No. 9374 of 2018 with Civil Application No.1636 of 2019 and Civil Application No.1694 of 2019
Mr. Sharin Nachan i/b. Mr. Sumit Phatale for applicant in CAW/1636/2019; Mr. Rajesh Kachare a/w Mr. Anoop Patil and Mrs. R. M. Bagkar i/b. Bagkar & Co. for respondent nos.1 & 2
Suhas Janardan Chavan and M/s. Suhas Hydro Systems Pvt. Ltd.
Rajesh Housing Pvt. Ltd. and Shri. Priyal K. Patel
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Nature of Litigation
Writ petition challenging eviction decree in a leave and license dispute.
Remedy Sought
Licensee sought to set aside the eviction decree and protect his possession.
Filing Reason
Licensee failed to renew the license agreement despite licensor's readiness, leading to eviction suit and decree.
Previous Decisions
Trial court decreed eviction on 15th April 2013 in L.E. Suit No.71/84 of 2008; appeal filed under Section 34 of Presidency Small Cause Courts Act, 1882.
Issues
Whether the licensee is entitled to protection against eviction when the license period has expired and the licensee failed to renew despite the licensor's readiness.
Submissions/Arguments
Licensee argued that the eviction decree was erroneous; licensor argued that the licensee failed to renew despite readiness.
Ratio Decidendi
A licensee cannot claim protection against eviction after the expiry of the license term if the licensee failed to renew the agreement despite the licensor's readiness to renew.
Judgment Excerpts
The Petitioner is a licensee, the 1st respondent the licensor–Company, and the 2nd respondent its Director.
But in 2008, the licensor predecessor, that is the original licensor, filed L.E. Suit No.71/84 of 2008 and secured an eviction decree on 15th April 2013.
Aggrieved, the licensee filed an Appeal No.41 of 2013 before the Appellate Bench of the Small Cause Court, Mumbai, under Section 34 of the Presidency Small Cause Courts Act, 1882.
Procedural History
Original licensor filed L.E. Suit No.71/84 of 2008 in 2008; trial court decreed eviction on 15th April 2013; licensee appealed under Section 34 of Presidency Small Cause Courts Act, 1882 (Appeal No.41 of 2013); Appellate Bench invoked Order 41 Rule 5 CPC; licensee filed writ petition before High Court.
Acts & Sections
- Presidency Small Cause Courts Act, 1882: Section 34
- Code of Civil Procedure, 1908: Order 41 Rule 5
