High Court of Judicature at Bombay Dismisses Petitioner's Writ Petition Against MHADA Eviction Order; Claim of Breach of Natural Justice Rejected Due to Illegal Occupation Without Occupation Certificate. Court Holds That a Person Occupying Premises Without Occupation Certificate Cannot Invoke Natural Justice to Prolong Unlawful Occupation and That Equitable Relief Under Article 226 is Not Available to a Litigant With Unclean Hands.

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

The petitioner, a businessman, filed a writ petition before the Bombay High Court challenging an ex-parte order dated 7 January 2025 passed by the Executive Engineer, Kurla Division, Mumbai Housing and Area Development Board, directing him and any assignee to vacate Shop No.2, Building No.5, Panchratna Co-operative Housing Society, Nehru Nagar, Kurla (E), Mumbai, within 48 hours, failing which the premises would be sealed by MHADA. The petitioner had executed a lease on 23 February 2024 with Jammu & Kashmir Bank to operate a branch from the said premises. The grievance was that the eviction order was passed without notice or hearing, violating principles of natural justice. The court had granted ad-interim relief on 8 January 2025, staying the eviction, which the respondents sought to vacate. During pendency, the first respondent passed a further order on 7 October 2025 directing immediate vacation. The sole legal issue canvassed was the alleged breach of natural justice for want of prior notice. The petitioner argued that the impugned order was passed behind his back and sought six months' time to vacate, citing public inconvenience if the bank branch were closed abruptly. The respondents contended that the building lacked an Occupation Certificate, the petitioner had commenced commercial use without one, and the ad-interim order was obtained without effective notice. The court found no merit in the petition. It held that a person engaged in business cannot claim ignorance of the fundamental requirement of an Occupation Certificate for lawful occupation. The fact that a public-facing bank branch was commenced in the premises aggravated the matter; the bank's officers owed a duty to verify statutory compliances. The plea of breach of natural justice was found untenable because the occupation was illegal ab initio and continuing. Even if some procedural lapse existed, no relief under Article 226 would be warranted where the substantive illegality is incontrovertible and poses public safety risks. The court emphasized that a litigant must approach with clean hands; the petitioner had commercially exploited the premises without an OC and then used the court's interim protection to perpetuate the illegality for nine months. No equitable relief was merited. Consequently, the writ petition was dismissed with exemplary costs of Rs.50,00,000/- to be paid to the PM Cares Fund within two weeks. The ad-interim order was vacated forthwith, and authorities were directed to immediately enforce the eviction orders. Additionally, the Chairman/Chief of Jammu & Kashmir Bank and MHADA were ordered to conduct an inquiry within six weeks to identify officers responsible for the illegal occupation, examine lapses, and take appropriate legal action. A compliance affidavit was directed to be filed within eight weeks.

Headnote

A) Natural Justice - Breach of Natural Justice - Ex-parte Order Without Notice - Maharashtra Housing and Area Development Act, 1976 - Petitioner challenged order directing vacation within 48 hours on ground of breach of natural justice. Held that plea of breach of natural justice is untenable where the occupation itself is illegal and lacking an Occupation Certificate; no relief in writ warranted when continuing illegality is incontrovertible and poses public safety risks (Paras 1, 5-7).

B) Equitable Relief - Clean Hands Doctrine - Writ Jurisdiction - Constitution of India, Article 226 - Petitioner occupied and commercially exploited premises without an Occupation Certificate and used court's ad-interim protection to perpetuate illegality. Held that a litigant who approaches the court must do so with clean hands; no equitable relief merited (Para 8).

C) Occupation Certificate - Requirement for Lawful Occupation - Maharashtra Regional and Town Planning Act, 1966 - Occupier cannot feign ignorance of the fundamental requirement of an Occupation Certificate for occupation and commercial use; public-facing bank branch commenced in premises lacking OC and fire NOC; neither petitioner nor bank can invoke natural justice to prolong unlawful occupation (Paras 5, 6).

D) Costs - Dismissal with Exemplary Costs - Code of Civil Procedure, 1908, Section 35 - Petition dismissed with costs of Rs.50,00,000/- to be paid to PM Cares Fund; non-compliance with OC requirement and exploiting court process justifies imposition of exemplary costs (Para 9, Order I).

E) Inquiry - Directions to Initiate Inquiry - General Administrative Law - Court directed Chairman/Chief of Jammu & Kashmir Bank and MHADA to initiate inquiry to identify officers responsible for commencing and operating branch in premises lacking OC and fire NOC, examine lapses, and take appropriate action (Para V).

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Issue of Consideration

Whether the order dated 7 January 2025 passed without notice or hearing violates principles of natural justice, and whether the petitioner is entitled to any relief despite occupying premises without Occupation Certificate.

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Final Decision

Writ petition dismissed with costs of Rs.50,00,000/- to be paid to PM Cares Fund within two weeks. Ad-interim order dated 8 January 2025 vacated forthwith. Authorities to immediately enforce eviction orders. Inquiry directed against officers of Jammu & Kashmir Bank and MHADA. Compliance affidavit to be filed within eight weeks.

Law Points

  • Legal points not extracted
  • breach of natural justice
  • equitable relief under writ jurisdiction
  • unclean hands
  • occupation without Occupation Certificate is illegal
  • public inconvenience not a ground to continue illegal occupation
  • duty of diligence for commercial entities
  • costs for filing frivolous petitions
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Case Details

2026 LawText (BOM) (06) 175

WRIT PETITION NO. 1107 OF 2025

2025-10-17

Kamal Khata, J.

Citation not available, 2025:BHC-OS:19632

Mr. Aditya P. Shirke i/by Adv. Shivraj Patne for the Petitioner, Mr. Akshay Shinde for the Respondent-MHADA

Bharat Keshavji Chheda

1. The Maharashtra Housing and Area Development Authority (MHADA), 2. The Mumbai Housing and Area Development Board (MHADB), 3. The Chief Officer, Mumbai Housing and Area Development Board, 4. The Executive Engineer, Kurla Division, Mumbai Housing and Area Development Board

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging an ex-parte eviction order passed by the Executive Engineer, Kurla Division, MHADB, directing the petitioner to vacate shop premises within 48 hours.

Remedy Sought

Quashing of the order dated 7 January 2025 and continuation of interim relief against eviction.

Filing Reason

The order was passed without notice or hearing, allegedly in breach of principles of natural justice.

Previous Decisions

Ad-interim order dated 8 January 2025 granted stay of eviction; respondents subsequently filed for vacating the stay; during pendency, respondent No.1 passed a further order dated 7 October 2025 directing immediate vacation.

Issues

Whether the ex-parte eviction order dated 7 January 2025 was passed in violation of natural justice, and whether the petitioner is entitled to any relief despite occupying premises without an Occupation Certificate.

Submissions/Arguments

Petitioner: The impugned order was passed behind his back; seeks six months' time to vacate citing public inconvenience if the Bank branch is abruptly closed; petitioner executed a lease with Jammu & Kashmir Bank. Respondents: The building lacks an Occupation Certificate; petitioner commenced commercial use without OC; order of 7 October 2025 passed by respondent No.1 directed immediate vacation; ad-interim order of 8 January 2025 was obtained without effective notice.

Ratio Decidendi

A party who occupies premises without an Occupation Certificate cannot invoke principles of natural justice to challenge an eviction order when the occupation is illegal ab initio. Equitable relief under writ jurisdiction is not available to a litigant with unclean hands who has commercially exploited such premises and used court's ad-interim protection to perpetuate illegality. Public inconvenience argument is not a valid ground to allow continuation of an unlawful occupation. The requirement of an Occupation Certificate is fundamental and cannot be ignored.

Judgment Excerpts

The grievance is that the order was passed without notice or hearing, allegedly offending principles of natural justice and entailing adverse civil consequences. (Para 1) A person engaged in business cannot feign ignorance of the fundamental requirement of an OC for occupation and commercial use. (Para 5) the Petitioner or the Bank cannot invoke natural justice to prolong an unlawful occupation or claim indulgence on the footing of “public inconvenience” of its own making. (Para 6) Even assuming some procedural lapse, no relief in Writ would be warranted where the substantive and continuing illegality is incontrovertible and poses public-safety risks. (Para 7) A litigant who approaches the Court must do so with clean hands. (Para 8)

Procedural History

Petitioner executed lease with Jammu & Kashmir Bank on 23 February 2024. Respondent No.4 passed ex-parte eviction order on 7 January 2025 directing vacation within 48 hours. Petitioner filed writ petition on 8 January 2025 and obtained ad-interim stay. Respondents moved to vacate stay. Respondent No.1 passed further order on 7 October 2025 directing immediate vacation. Court heard the matter, reserved judgment on 25 September 2025, and pronounced it on 17 October 2025.

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