JUDGEMENT
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(1.) This appeal has been preferred against the judgment and order
dated 3.8.2009 in Civil Revision Application No. 564 of 2008 passed
by the High Court of Judicature at Bombay affirming the judgment and
order of the Small Causes Appellate Court dated 14.8.2008 in Appeal
No. 627 of 2006 by which the appellate court has affirmed the
judgment and decree dated 5.8.2006 in TE & R Suit No. 311/326/2001
passed by the Court of Small Causes at Bombay.
(2.) FACTS:
A. The suit premises belongs to the trust run by the respondents -
Nareshkumar Badrikumar Jagad & Ors. Sh. Damodar Dass Tapi Dass
and Sh. Daya Bhai Tapidas executed a lease deed dated 11.3.1893 in
respect of the suit premises admeasuring 12118 sq. yds. bearing plot
no. 9 in Survey No. 73 of Lower Parel Division, N.M. Joshi Marg,
Chinchpokli, Mumbai-400 011, in favour of a company named Hope
Mills Limited for a period of 99 years commencing from 22.10.1891.
The lease so executed was to expire on 21.10.1990.
B. The original owners transferred and conveyed the suit property
in favour of one Harichand Roopchand and Ratan Bai on 22.2.1907.
Thereafter, the suit property came to be vested in and owned by a
public charitable trust, namely, Harichand Roopchand Charity Trust
(hereinafter called as 'Trust').
C. The leasehold rights in respect of suit property stood transferred
to Prospect Mills Ltd. and, thereafter to Diamond Spinning & Weaving
Co. Pvt. Ltd. and, ultimately, vide a lease indenture dated 25.10. 1926
to Toyo Poddar Cotton Mills Ltd. (hereinafter called the 'Poddar
Mills').
D. The Textile Undertakings (Taking over of Management) Act,
1983 (hereinafter called 'the Act 1983') was enacted by the Parliament
in order to take over the management of 13 textile undertakings
including the Poddar Mills pending their nationalisation. The lease
granted in favour of Poddar Mills expired by efflux of time on
22.10.1990. Thus, the said Poddar Mills continued as a tenant by
holding over the suit premises. The Trust issued a legal notice dated
2.12.1994 to the National Textile Corporation (hereinafter called as the
appellant), terminating its tenancy qua the suit premises. The
Parliament enacted the Textile Undertakings (Nationalisation) Act,
1995 (hereinafter called 'the Act 1995'). The Trust filed an eviction
suit against the appellant under the provisions of the Bombay Rents,
Hotel and Lodging House Rates Control Act, 1947 (hereinafter called
'the Act 1947'). The Act 1947 stood repealed by the Maharashtra Rent
Control Act, 1999 (hereinafter called 'the Act 1999'). The respondent-
Trust issued a notice for terminating the tenancy of the appellant vide
notice dated 26.9.2000. The respondents/plaintiffs after withdrawal of
the suit filed under the Act 1947, filed a fresh suit in the Small Causes
Court at Bombay seeking eviction of appellant and for a decree of
mesne profits on 20.4.2001. The appellant filed the written statement
denying the pleas taken by the respondents/plaintiffs. The suit was
decreed in favour of the respondents/plaintiffs vide judgment and
decree dated 5.8.2006 by which the appellant was directed to hand over
vacant and peaceful possession of the suit premises to the respondents
within four months.
E. Being aggrieved, the appellant preferred Appeal No. 627 of 2006
to the Division Bench of the Small Causes Court at Bombay on
13.11.2006 which was dismissed by the appellate court by affirming
the judgment and decree of the trial court vide judgment and decree
dated 14.8.2008. The appellant preferred civil revision before the High
Court of Bombay, which has been dismissed vide impugned judgment
and order dated 3.8.2009.
Hence, this appeal.
(3.) Shri Prag P. Tripathi, learned Additional Solicitor General,
appearing for the appellant has submitted that the judgments and
decrees of the courts below have to be set aside as none of the courts
below has taken into consideration the effect of the provisions of the
Act 1995 by virtue of which the textile undertaking stood absolutely
vested in the Central Government and further vested in the appellant.
As on the expiry of the lease of 99 years on 22.10.1990, the Act 1947
was in force, the then tenant, Poddar Mills became the statutory tenant.
Such tenancy rights stood vested absolutely in the Central Government
on commencement of the Act 1995 by operation of law. The appellant
stepped in the shoes of the Central Government merely as an agent,
thus, the Central Government remained the tenant. The Central
Government continued to be a tenant in the suit premises and thus,
would be protected in terms of Section 3(1) (a) of the Act 1999 being
premises let out to the Government. The courts below failed to
consider this vital legal issue. The suit filed by the respondents was
not maintainable. The judgments and decrees of the courts below are
liable to be set aside.;
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