Case Note & Summary
The Municipal Corporation of Greater Mumbai (appellant) appealed against an order of the City Civil Court, Mumbai, which granted an interim injunction restraining the Corporation from acting upon a notice dated 6th December 2000 issued under Section 394(4) of the Mumbai Municipal Corporation Act, 1888 (MMC Act). The respondents, Smt. Kusum Virendra Shah and others, were carrying on a motor repair business in the suit premises under a licence obtained under the Bombay Shops and Establishments Act, 1948 (Shop Act) from 10th February 1993. They operated without objection until December 2000, when the Corporation issued a notice directing them to discontinue use within 48 hours, threatening seizure of articles for non-compliance. The respondents filed L.C. Suit No.1060 of 1999 seeking an injunction, and took out Notice of Motion No.926 of 1999 for interim relief. The trial court allowed the motion on 25th January 2001, granting the injunction. The Corporation appealed. The High Court noted that the respondents' only ground for challenging the notice was that they held a licence under the Shop Act. However, the Court observed that a licence under the Shop Act merely permits the running of a shop or establishment but does not authorise the use of premises in violation of the MMC Act. The respondents did not plead that the use of the premises was authorised under the MMC Act or that they had obtained any permission from the Corporation. The Court held that the respondents failed to make out a prima facie case for the grant of an injunction. The appeal was allowed, the impugned order was set aside, and the Notice of Motion was dismissed. No order as to costs.
Headnote
A) Municipal Law - Unauthorised Use of Premises - Section 394(4) Mumbai Municipal Corporation Act, 1888 - Licence under Bombay Shops and Establishments Act, 1948 - The respondents, carrying on motor repair business under a Shop Act licence, challenged a notice under Section 394(4) MMC Act directing discontinuance of use. The trial court granted an interim injunction. The High Court held that a licence under the Shop Act does not confer any right to use premises in contravention of the MMC Act, and the respondents failed to show a prima facie case that the use was authorised. The injunction was set aside. (Paras 4-6)
Issue of Consideration
Whether a licence granted under the Bombay Shops and Establishments Act, 1948 can prevent the Municipal Corporation from taking action under Section 394(4) of the Mumbai Municipal Corporation Act, 1888 for alleged unauthorised use of premises.
Final Decision
Appeal allowed. Impugned order dated 25th January 2001 set aside. Notice of Motion No.926 of 1999 dismissed. No order as to costs.
Law Points
- Licence under Bombay Shops and Establishments Act does not override provisions of Mumbai Municipal Corporation Act
- Section 394(4) MMC Act empowers Corporation to order discontinuance of unauthorised use
- Prima facie case not made out for injunction when statutory notice is challenged on grounds of licence under different Act
