Bombay High Court Dismisses Municipal Corporation's Revision Against Rejection of Plaint Rejection Application in Lease Dispute. Suit for declaration of tenancy and injunction is not barred by Section 81-B of Maharashtra Municipal Corporations Act as Collector's order under Section 80 does not bar civil suit.

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

The case involves a civil revision application filed by the Municipal Corporation of City of Jalgaon challenging an order of the Civil Judge, Senior Division, Jalgaon, which rejected the Corporation's application under Order 7 Rule 11 of the Code of Civil Procedure, 1908 (CPC) for rejection of the plaint. The respondent, Arjundas Khushiram Bajaj (deceased, through legal heir Shankarlal Arjundas Bajaj), was occupying a shop premises belonging to the Corporation. The lease period had expired, and the Corporation issued a show cause notice under Section 81-B of the Maharashtra Municipal Corporations Act (the Act) for eviction. In response, the respondent filed an application before the Collector under Section 80(1) of the Act seeking a declaration as a tenant under the Maharashtra Rent Control Act, 1999. The Collector rejected the application, holding that he had no power under Section 80 to make such a declaration. Thereafter, the respondent filed Regular Civil Suit No. 330 of 2013 seeking a declaration of tenancy and an injunction restraining the Corporation from evicting him without following due process of law. The Corporation filed an application under Order 7 Rule 11 CPC contending that the suit was barred by Section 81-B of the Act, which provides a mechanism for eviction of unauthorised occupants, and that the civil court had no jurisdiction. The trial court rejected the application, leading to the present revision. The High Court examined the provisions of Section 81-B and Section 80 of the Act. It noted that Section 81-B deals with eviction of persons in unauthorised occupation of municipal property after notice, but does not bar a civil suit for declaration of tenancy. The court observed that the respondent's claim of tenancy under the Rent Control Act raises a question of fact that cannot be decided in an application under Order 7 Rule 11 CPC. The Collector's order under Section 80 does not create a bar to the civil suit as the Collector has no power to declare tenancy. The High Court held that the plaint discloses a cause of action and the suit is not barred by law. Accordingly, the revision application was dismissed, and the trial court's order rejecting the application under Order 7 Rule 11 CPC was upheld. The court directed that the suit be decided on its merits expeditiously.

Headnote

A) Civil Procedure Code - Rejection of Plaint - Order 7 Rule 11 - Maintainability - The court considered whether the plaint discloses a cause of action and whether the suit is barred by law. The trial court rejected the application under Order 7 Rule 11 CPC filed by the Municipal Corporation. The High Court upheld the rejection, holding that the suit for declaration of tenancy and injunction is not barred by Section 81-B of the Maharashtra Municipal Corporations Act as the Collector's order under Section 80 does not create a bar to civil suit. (Paras 2-5)

B) Maharashtra Municipal Corporations Act - Bar of Jurisdiction - Section 81-B - Lease of Municipal Property - The court interpreted Section 81-B which provides for eviction of unauthorised occupants after notice. The court held that the section does not bar a civil suit for declaration of tenancy and injunction, especially when the respondent claims to be a tenant under the Maharashtra Rent Control Act, 1999. The Collector's order under Section 80 rejecting the application for declaration of tenancy does not preclude the civil court from examining the issue. (Paras 3-5)

C) Maharashtra Rent Control Act, 1999 - Tenancy Declaration - Jurisdiction of Civil Court - The respondent sought declaration as a tenant under the Rent Control Act. The court held that the civil court has jurisdiction to decide the question of tenancy and the suit is not barred by the provisions of the Maharashtra Municipal Corporations Act. (Para 4)

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Issue of Consideration

Whether the civil suit filed by the respondent seeking declaration of tenancy and injunction against eviction is barred under Section 81-B of the Maharashtra Municipal Corporations Act, and whether the plaint is liable to be rejected under Order 7 Rule 11 CPC.

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Final Decision

The High Court dismissed the civil revision application, upholding the trial court's order rejecting the application under Order 7 Rule 11 CPC. The court held that the suit is not barred by Section 81-B of the Maharashtra Municipal Corporations Act and the plaint discloses a cause of action. The suit is to be decided on its merits expeditiously.

Law Points

  • Order 7 Rule 11 CPC
  • Section 81-B Maharashtra Municipal Corporations Act
  • Section 80 Maharashtra Municipal Corporations Act
  • Maharashtra Rent Control Act 1999
  • maintainability of civil suit
  • bar of jurisdiction
  • lease of municipal property
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Case Details

2015 LawText (BOM) (12) 22

Civil Revision Application No. 249 of 2015

2015-12-11

T.V. Nalawade, J.

Shri. Pradip R. Patil for petitioner, Shri. S.B. Yawalkar for respondent

Municipal Corporation of City of Jalgaon

Arjundas Khushiram Bajaj (deceased, through legal heir Shankarlal Arjundas Bajaj)

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Nature of Litigation

Civil revision application challenging rejection of application under Order 7 Rule 11 CPC for rejection of plaint in a suit for declaration of tenancy and injunction.

Remedy Sought

Petitioner (Municipal Corporation) sought rejection of plaint under Order 7 Rule 11 CPC on the ground that the suit is barred by Section 81-B of the Maharashtra Municipal Corporations Act.

Filing Reason

The respondent filed a civil suit seeking declaration of tenancy and injunction against eviction after the Corporation issued a show cause notice under Section 81-B of the Act for eviction from a shop premises whose lease had expired.

Previous Decisions

The Collector rejected the respondent's application under Section 80 of the Act seeking declaration as a tenant, holding that he had no such power. The trial court rejected the Corporation's application under Order 7 Rule 11 CPC.

Issues

Whether the civil suit for declaration of tenancy and injunction is barred under Section 81-B of the Maharashtra Municipal Corporations Act? Whether the plaint is liable to be rejected under Order 7 Rule 11 CPC for lack of cause of action or bar by law?

Submissions/Arguments

Petitioner (Corporation) argued that the suit is barred by Section 81-B of the Act which provides a mechanism for eviction of unauthorised occupants and ousts the jurisdiction of civil court. Respondent argued that the suit is maintainable as he claims tenancy under the Maharashtra Rent Control Act, 1999, and the Collector's order under Section 80 does not bar a civil suit.

Ratio Decidendi

Section 81-B of the Maharashtra Municipal Corporations Act does not bar a civil suit for declaration of tenancy and injunction. The Collector's order under Section 80 rejecting an application for declaration of tenancy does not create a bar to the civil suit as the Collector has no power to declare tenancy. The question of tenancy under the Maharashtra Rent Control Act, 1999 is a question of fact that cannot be decided in an application under Order 7 Rule 11 CPC.

Judgment Excerpts

The proceeding is filed by the Jalgaon Municipal Corporation to challenge the order made by the learned Civil Judge, Senior Division, Jalgaon on application filed under Order 7 Rule 11 of the Civil Procedure Code by the present petitioner. After hearing both sides, the Collector rejected the application and held that there was no such power with the Collector under section 80 of the Act. The suit is filed by present respondent and he opposed the application. The Civil Court has rejected the application.

Procedural History

The respondent filed Regular Civil Suit No. 330 of 2013 before the Civil Judge, Senior Division, Jalgaon. The petitioner (Municipal Corporation) filed an application under Order 7 Rule 11 CPC for rejection of the plaint. The trial court rejected the application. The Corporation then filed the present Civil Revision Application No. 249 of 2015 before the Bombay High Court, Aurangabad Bench, which was heard and disposed of on 11 December 2015.

Acts & Sections

  • Code of Civil Procedure, 1908 (CPC): Order 7 Rule 11
  • Maharashtra Municipal Corporations Act: Section 80, Section 81-B
  • Maharashtra Rent Control Act, 1999:
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