Bombay High Court Dismisses Developer's Petition Challenging City Civil Court Jurisdiction in Tenant Eviction Suit. Agreement for Sale and Power of Attorney Do Not Create Landlord-Tenant Relationship Under Bombay Rent Act, 1947, Section 28.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The present writ petition challenged an order dated 9.8.2005 passed by the City Civil Court, Bombay, on a preliminary issue of jurisdiction in L.C. Suit No. 2974 of 2004. The respondents, original plaintiffs, were tenants of tenements on a plot of land at Kole Kalyan, Andheri, Bombay. The original landlord, Sheikh Gafoor Sheikh Cassum, entered into an agreement for sale dated 12.8.1987 with M/s. Jogani & Sachdev Developments (the petitioner), and executed a power of attorney in favour of Avtarsingh Sachdev and Ghewarchand Lalchand Jogani, conferring rights to develop the property, settle tenants, and construct a building. The developer issued rent receipts to the tenants, who paid rent to the developer. On 1.3.1992, the developer issued a notice to the tenants demanding vacant possession, claiming they were tenants of the developer. The tenants filed L.C. Suit No. 2974 of 2004 in the City Civil Court seeking a declaration that they were tenants of the original landlord and that the developer had no right to evict them. The developer raised a preliminary objection that the City Civil Court lacked jurisdiction under Section 28 of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947, as the dispute was between landlord and tenant. The trial court held that the developer was not a landlord and the suit was maintainable. The High Court upheld this view, reasoning that the developer was merely an agreement holder and power of attorney holder, not the landlord, and thus the suit was not barred by Section 28. The petition was dismissed.

Headnote

A) Rent Control - Jurisdiction - Section 28 Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 - Preliminary Issue - The question was whether the City Civil Court had jurisdiction to entertain an eviction suit filed by tenants against a developer who was not the landlord but an agreement holder and power of attorney holder of the original landlord - The Court held that since the developer was not the landlord within the meaning of the Act, the suit was not barred by Section 28 and the City Civil Court had jurisdiction to try the suit (Paras 1-10).

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Issue of Consideration

Whether the City Civil Court has jurisdiction to entertain the eviction suit filed by the tenants against the developer, or whether the suit is barred under Section 28 of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947.

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Final Decision

The High Court dismissed the writ petition, upholding the order of the City Civil Court that it had jurisdiction to try the suit.

Law Points

  • Jurisdiction of City Civil Court
  • Landlord-tenant relationship
  • Agreement for sale
  • Power of attorney
  • Bombay Rents
  • Hotel and Lodging House Rates Control Act
  • 1947
  • Section 28
  • Section 41
  • Eviction suit
  • Preliminary issue
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Case Details

2005 LawText (BOM) (12) 78

Writ Petition No. 7378 of 2005

2005-12-15

S.U. Kamdar, J.

Mr. S. K. Shah i/by M/s. Narayan & Narayan for petitioners; Ms. R.C. Nichani for respondents

M/s. Jogani & Sachdev Developments

Lawrence D'Souza & Ors.

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Nature of Litigation

Writ petition challenging order on preliminary issue of jurisdiction in a suit for declaration and injunction.

Remedy Sought

Petitioner (developer) sought to set aside the order of City Civil Court holding that it had jurisdiction to try the suit.

Filing Reason

The petitioner claimed that the City Civil Court lacked jurisdiction under Section 28 of the Bombay Rent Act as the dispute was between landlord and tenant.

Previous Decisions

The City Civil Court held that the petitioner was not a landlord and the suit was maintainable.

Issues

Whether the City Civil Court has jurisdiction to entertain the suit filed by the tenants against the developer. Whether the developer is a landlord within the meaning of the Bombay Rent Act, 1947.

Submissions/Arguments

Petitioner argued that the suit was between landlord and tenant and thus barred by Section 28 of the Bombay Rent Act, 1947. Respondents argued that the petitioner was not a landlord but only an agreement holder and power of attorney holder, and thus the suit was maintainable in the City Civil Court.

Ratio Decidendi

A person who is not the landlord but merely an agreement holder and power of attorney holder of the original landlord cannot be considered a landlord under the Bombay Rent Act, 1947. Therefore, a suit for declaration and injunction filed by tenants against such a person is not barred by Section 28 of the Act, and the City Civil Court has jurisdiction to entertain it.

Judgment Excerpts

By the present petition the order dated 9.8.2005 passed by the City Civil Court on a preliminary issue of jurisdiction in L.C. Suit No. 2974 of 2004 is challenged. The original plaintiffs being respondents herein are the tenants in respect of tenements situated on a plot of land bearing No. 298, Hissa No. 9 and 15 admeasuring 4961 sq. yards equivalent to 4098 sq. mtrs. at Kole Kalyan, Taluka Andheri in the City of Bombay.

Procedural History

The respondents filed L.C. Suit No. 2974 of 2004 in the City Civil Court, Bombay, seeking declaration and injunction. The petitioner raised a preliminary objection regarding jurisdiction. The City Civil Court passed an order on 9.8.2005 holding that it had jurisdiction. The petitioner challenged this order by filing Writ Petition No. 7378 of 2005 in the Bombay High Court.

Acts & Sections

  • Bombay Rents, Hotel and Lodging House Rates Control Act, 1947: 28
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High Court Bombay High Court Dismisses Developer's Petition Challenging City Civil Court Jurisdiction in Tenant Eviction Suit. Agreement for Sale and Power of Attorney Do Not Create Landlord-Tenant Relationship Under Bombay Rent Act, 1947, Section 28.