Case Note & Summary
The petitioner, a tenant of a room in Gayatri Bhuvan building at Malad, Mumbai, approached the Bombay High Court under Article 226 alleging collusive and illegal conduct by the landlord/developer and the Municipal Corporation of Greater Mumbai. The landlord had purchased the property in 2006 with the intention of redevelopment and offered the petitioner a flat in the new building. However, no agreement was executed, and the landlord terminated the tenancy. The landlord filed an eviction suit under the Maharashtra Rent Control Act, 1999, which was dismissed on 18-03-2009 for failure to prove compliance with Section 16(6) regarding provision of alternate accommodation. Meanwhile, the MCGM issued a demolition notice under Section 354 of the Mumbai Municipal Corporation Act on 15-04-2009. After an appeal and remand for additional evidence, the building was demolished in April 2014, still without any agreement for permanent alternate accommodation with the petitioner. The landlord then withdrew the suit as infructuous. In July 2014, the petitioner informed the MCGM that no agreement existed and requested that a Commencement Certificate not be issued. However, the MCGM issued the Certificate, enabling construction. The petitioner contended that this action violated IOD Condition No.10, the Court’s order in an earlier writ petition, and the MCGM’s own C-1 category guidelines. The MCGM admitted that the landlord had unauthorizedly placed occupants in the new building before obtaining an Occupation Certificate. By the time of the hearing, construction was complete and an Occupation Certificate had been issued on 24-10-2018. The Court declined to order a Stop Work notice or appoint a Receiver to avoid inconvenience to other flat purchasers, but moulded the relief. It directed the landlord to file an undertaking within four weeks to provide the petitioner a permanent alternate accommodation of 300 sq. ft. carpet area in the new building with ownership rights free of cost. Upon filing, the MCGM was to permit the landlord to retain the Occupation Certificate. Failure to file the undertaking would result in the MCGM initiating action under Section 45A of the MRTP Act and not issuing further Commencement Certificates to the landlord, treating the construction as unauthorized. The MCGM was also directed to take action regarding unauthorized occupation. The petition was thus allowed in part, securing the tenant’s rights.
Headnote
A) Municipal Law - Building Regulation - Commencement Certificate - Non-compliance with IOD Conditions - Mumbai Municipal Corporation Act, 1888, Section 354; Maharashtra Regional and Town Planning Act, 1966, Section 45 - The MCGM issued a Commencement Certificate to the landlord despite Condition No.10 of the IOD requiring submission of an agreement with existing tenants, and contrary to the Court's order dated 23-06-2014 in WP(L) No.1135/2014 and Clause 1.15 of the C-1 category guidelines. Held, such issuance was irregular and prejudiced the tenant's right to permanent alternate accommodation, warranting judicial intervention. (Paras 1, 4.9, 4.20) B) Landlord and Tenant - Redevelopment - Obligation to Provide Permanent Alternate Accommodation - Maharashtra Rent Control Act, 1999, Section 16(1)(i), (6) - In the eviction suit for demolition and redevelopment, the landlord failed to prove compliance with Section 16(6), leading to dismissal; later, the building was demolished under Section 354 notice. The Court reaffirmed that the landlord's obligation to provide permanent alternate accommodation to the tenant is a continuing one and must be fulfilled irrespective of the demolition route. (Paras 4.10, 4.11, 4.19) C) Constitutional Law - Writ Jurisdiction - Moulding of Relief - Constitution of India, Article 226 - Although construction was complete and an Occupation Certificate had been issued, the Court moulded the relief to direct the landlord to file an undertaking to provide permanent alternate accommodation of similar carpet area free of cost, failing which the MCGM was to take action under Section 45A of the MRTP Act and not issue further Commencement Certificates, thereby balancing equities. (Paras 3) D) Civil Procedure - Remand - Additional Evidence - Code of Civil Procedure, 1908, Order 41 Rule 23 - The Appellate Court set aside the dismissal of the eviction suit and remanded the matter for recording additional evidence on the issue of compliance with Section 16(6) of the Maharashtra Rent Control Act, enabling parties to adduce further material. (Paras 4.14)
Issue of Consideration
Whether the Municipal Corporation of Greater Mumbai could issue a Commencement Certificate under Section 45 of the Maharashtra Regional and Town Planning Act, 1966 to the landlord/developer in the absence of an agreement providing permanent alternate accommodation to the tenant/petitioner, contrary to the conditions in the IOD and the earlier order of this Court in Writ Petition (L) No.1135 of 2014
Final Decision
The Court moulded the reliefs. It directed the landlord/developer to file an undertaking in this Court within four weeks to provide the petitioner a permanent alternate accommodation of 300 sq.ft. carpet area in the new building, free of cost, with ownership rights. Upon filing such undertaking, the MCGM shall permit the landlord to retain the Occupation Certificate. If the undertaking is not filed, the MCGM shall treat the construction as unauthorized and initiate action under Section 45A of the MRTP Act, 1966, and not issue any further Commencement Certificate to the landlord. The MCGM shall also take appropriate action for unauthorized occupation before the Occupation Certificate. The Writ Petition is partly allowed with these directions.
Law Points
- Legal points not extracted
- IOD conditions must be strictly complied with before issuance of Commencement Certificate under Section 45 of MRTP Act
- 1966
- landlord must provide permanent alternate accommodation to existng tenants
- issuance of Commencement Certificate without agreement with tenant violates IOD and court orders
- MCGM's guidelines for C-1 category buildings mandate such agreement
- under Article 226
- court can mould relief to ensure justice even after construction and issuance of Occupation Certificate
- failure to satisfy Section 16(6) of Maharashtra Rent Control Act
- 1999 bars eviction decree
