Showing posts with label leave and licence agreement. Show all posts
Showing posts with label leave and licence agreement. Show all posts

Thursday, 8 June 2023

Is every claim for a license fee for the remainder of a lock-in period in a leave and license agreement considered a claim for damages?

 (e) Every claim for license fee for the remainder of a lock-in period in a leave and license agreement is not per se a claim for damages, liquidated or unliquidated. In a given case, it may be in the nature of either, or in the nature of a penalty, or it may simply be a component of the contractual consideration and therefore a debt properly so-called when the contingency in contemplation comes to pass. This will depend on an interpretation of the contract in question and an assessment of the conduct of the parties.

 IN THE HIGH COURT OF BOMBAY

Company Petition No. 496 of 2013

Decided On: 28.02.2014

 Indiabulls Properties Pvt. Ltd.  Vs. Treasure World Developers Pvt. Ltd.

Hon'ble Judges/Coram:

G.S. Patel, J.

Citation: MANU/MH/0249/2014,2014 SCCOnLine Bom 4768.

Read full Judgment here: Click here

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Is a contractual provision for a lock-in period in a leave and license agreement illegal?

The result of this discussion, in summary, is that for the purposes of Section 433 of the Companies Act, 1956:


(a) The liability of the respondent-company must be certain. Where the liability is to be adjudged, i.e., where it remains to be decided by a court whether or not the respondent-company is liable in the first place, there can be no 'debt' within the meaning of the section. The liability of a company is its obligation to pay. The debt is the amount that it is liable to pay.


(b) The debt must an ascertained, or definitely ascertainable, amount, not one that requires adjudication. 13 A claim in damages is no debt. 14


(c) The debt must be a debt now due at the time of presentation of the petition. Any contingency contemplated must be one that has come to pass; it cannot be one yet to occur. 15 It is on the happening of a contingency that a company can be said to be 'indebted'. Should the contingency never happen, there can be no debt .24


(d) A contractual provision in a leave and license agreement for a lock-in period is not per se illegal, unlawful, void or even voidable.


(e) Every claim for license fee for the remainder of a lock-in period in a leave and license agreement is not per se a claim for damages, liquidated or unliquidated. In a given case, it may be in the nature of either, or in the nature of a penalty, or it may simply be a component of the contractual consideration and therefore a debt properly so-called when the contingency in contemplation comes to pass. This will depend on an interpretation of the contract in question and an assessment of the conduct of the parties. {Para 64}

 IN THE HIGH COURT OF BOMBAY

Company Petition No. 496 of 2013

Decided On: 28.02.2014

 Indiabulls Properties Pvt. Ltd.  Vs. Treasure World Developers Pvt. Ltd.

Hon'ble Judges/Coram:

G.S. Patel, J.

Citation: MANU/MH/0249/2014,2014 SCCOnLine Bom 4768.

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Sunday, 28 August 2022

Can the court grant interim relief U/S 9 of the Arbitration Act relating to possession of property given on leave and license?

As held by the Full Bench in Central Warehousing Corporation, Mumbai (supra) in the arbitration agreement in such cases is held to be invalid and inoperative on the principle that it would be against public policy to allow the parties, by a contract to oust the exclusive jurisdiction of the Small Causes Court by virtue of Section 41 of the PSCC Act.

41. Thus, in my opinion, the respondents are correct in their

contention that this Court would not have jurisdiction to entertain the Section 9 petition considering the nature of the reliefs, which in fact pertain to or are incidental to the possession of the licenced premises as asserted by the petitioners, subject matter of the leave and licence agreements. Hence, as held by the Court in the decisions as discussed above, jurisdiction to entertain any such proceedings would lie with the Small Causes Court under the provisions of Section 41 of the PSCC Act.

In view of such conclusion, it may not be possible for the Court to pass any orders on the present petition permitting the respondent to deposit in this Court liquidated damages which Mr. Shah had agreed to deposit even in the present proceedings. In view of the fact that the present proceedings are held as not maintainable and having reached such conclusion, it may not be permissible for the Court to bifurcate causes of action, the principles of law in that regard being well settled. Needless

to observe that it would be open to the petitioner to seek prayers in that regard in appropriate proceedings in the event the claims are pure monetary disputes falling within the realm of arbitrability of such disputes. All contentions of the parties in that regard are expressly kept open.

42. Resultantly, these petitions filed under Section 9 of the Arbitration and Conciliation Act,1996, cannot be entertained. The petitions are accordingly dismissed. The petitioners are at liberty to take recourse to other appropriate proceedings as may be available to the petitioners in law including to assert pure monetary claims in arbitral proceedings as discussed in paragraph 37 of this judgment.

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION

ARBITRATION PETITION (L.) NO. 22526 OF 2022

BXIN Office Parks India Pvt. Ltd. Vs  Kailasa Urja Pvt. Ltd. 

CORAM : G.S. KULKARNI, J.

Pronounced on : AUGUST 20, 2022.

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Sunday, 3 July 2022

Whether the Small cause court has jurisdiction to try a claim for recovery of security deposit or damages or is said dispute arbitrable?

As held by this Court in the case of Brainvisa Technologies Pvt. Ltd. (supra) license fee, charges and rent are periodical payments made for use and occupation. A claim for recovery of the same, legitimately falls within the exclusive jurisdiction of the Court of Small Causes. In the case at hand, the respondent professes to withhold the security deposit on the ground that the applicant is liable to pay damages. Such a claim, in my considered view, does not fall within the exclusive jurisdiction of the Court of Small Causes, and is amenable to arbitration. 

{Para 45}

 IN THE HIGH COURT OF BOMBAY

Arbitration Application No. 340 of 2019

Decided On: 05.05.2022

 Bafna Motors Private Limited  Vs.  Amanulla Khan

Hon'ble Judges/Coram:

N.J. Jamadar, J.

Citation: MANU/MH/1583/2022
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Monday, 21 December 2020

What will be the effect of leave and licence agreement between landlord and deemed tenant?

Section 15A itself has a non-obstante clause, which, as I have noted above, operates notwithstanding anything contrary contained in any inter parties agreement. In other words, the provision of Section 15A cannot be defeated or overriden by a private contract between the parties. As I have noted above, the non-obstante clause at the beginning of Section 15A makes a vital difference and makes its enacting provision incapable of being overridden by a private contract. (This is not a case, where, as a plea of fact, it is claimed that there was a physical surrender of tenancy and creation of a fresh licence post such surrender. What is claimed is that the benefit of Section 15A was waived by the licensee.)


14. The conclusive nature of the facts stated in the agreements of leave and licence (after 1 February 1973) is no answer to the licensee's plea of deemed tenancy either. There is no question here of any facts. The predecessors of Respondent No. 3, no doubt, did purport to create a licence in favour of the Petitioner despite the latter's legally acquired status of a deemed tenant. The question is, whether this licence has the effect of defeating the licensee's legally acquired status of deemed tenancy. That is a question of law. The agreement of licence may be a conclusive proof of the facts stated therein, but the law cannot be decided by the parties through their statements. That is not a matter of volition or individual contract.

16. The sum and substance of the above discussion is that in view of the deemed tenancy of the Petitioner herein, the suit premises are exempted from the application of the Act and as a result, the Competent Authority lacked jurisdiction to entertain any application under Section 24 of the Act in respect of the premises. The impugned orders of the Competent Authority and the Additional Commissioner, thus, deserve to be quashed and set aside.

 IN THE HIGH COURT OF BOMBAY

Writ Petition No. 7931 of 2019

Decided On: 19.05.2020


 EEPC India  Vs.  Additional Commissioner, Konkan Division and Ors.


Hon'ble Judges/Coram:

S.C. Gupte, J.

Citation: MANU/MH/0573/2020, 2020(5) MHLJ 585

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Tuesday, 5 May 2020

Whether suit for refund of a security deposit under leave and licence agreement is tenable U/S 41 of small Causes Court Act?

In my view, even if such amount would have been demanded by the petitioners under clause (3) of the leave and licence agreement, the said dispute also could not have attracted section 41 of the Presidency Small Cause Courts Act, 1882. Such demand of licence fees at the enhanced rate which could be adjusted against the security deposit would not relate to the dispute falling under the expression "dispute relating to recovery of possession" attracting section 41 of the Presidency Small Cause Courts Act, 1882.

IN THE HIGH COURT OF BOMBAY

Commercial Arbitration Petition No. 452 of 2019 and Notice of Motion No. 911 of 2019

Decided On: 23.07.2019

 A.S. Patel Trust  Vs.  Wall Street Finance Limited

Hon'ble Judges/Coram:
R.D. Dhanuka, J.

Citation:  MANU/MH/1959/2019 
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Sunday, 19 January 2020

Who is competent to decide issue of refund of security deposit by licensor to licensee either Arbitrator or small cause court?

 This court in case of RMC Readymix (I) P. Ltd. (supra) held that the suit for refund of security deposit is not covered by section 41 of the Presidency Small Cause Courts Act. It is held that the contention could be tenable if suit was for possession of the premises. This court specifically rejected the contention of the defendant that the deposit being related to premises on leave and licence basis and thus, it would be covered by section 41 of the Presidency Small Cause Courts Act.

31. This court in case of BNP Paribas Securities India Pvt. Ltd. (supra) while deciding an application under section 9 of the Arbitration Act held that the petition for refund of security deposit not refunded by the licensor would not fall under section 41 of the Presidency Small Cause Courts Act, 1882. It is held that since the reliefs of possession of the property and recovery of licence fee and damages already prayed by the licensor against the licencee in the Small Causes Court, the claim for refund of security deposit made by the licencee in the arbitral proceedings was maintainable.

37. In my view, even if such amount would have been demanded by the petitioners under clause (3) of the leave and licence agreement, the said dispute also could not have attracted section 41 of the Presidency Small Cause Courts Act, 1882. Such demand of licence fees at the enhanced rate which could be adjusted against the security deposit would not relate to the dispute falling under the expression "dispute relating to recovery of possession" attracting section 41 of the Presidency Small Cause Courts Act, 1882.

IN THE HIGH COURT OF BOMBAY

Commercial Arbitration Petition No. 452 of 2019 and Notice of Motion No. 911 of 2019

Decided On: 23.07.2019

A.S. Patel Trust Vs.  Wall Street Finance Limited

Hon'ble Judges/Coram:
R.D. Dhanuka, J.

Citation: 2020(1) MHLJ 381
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Saturday, 28 December 2019

Bombay HC: Registered leave and licence agreement is not public document

 In fact, this Court, in Vithoba Savlaram v. Shrihari Narayan MANU/MH/0077/1944 : AIR 1945 BOM 319, has held that once a private document has been kept in official record with entry about their execution, say by a registering authority, that document per se does not become a public document. But the entry in the official record in relation to that document does.

41. Here the alleged registered 'leave and license agreement' still remains a private document that its registration does not cure the mischief under Section 74 of the Act. Its marking through PW1 does not amount to its proof, though. I reckon the other documents are public documents or private documents sought to be marked through PW1, from whom they originate. 

IN THE HIGH COURT OF BOMBAY

Writ Petition No. 8764 of 2018

Decided On: 07.08.2019

 Kumarpal N. Shah Vs.  Universal Mechanical Works Pvt. Ltd.

Hon'ble Judges/Coram:
Dama Seshadri Naidu, J.

Citation: AIR 2019 Bom 290: 2020(1) MHLJ 442
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Wednesday, 30 October 2019

How to ascertain whether lease or licence was created by particular document?

The apparent tenor of the documents i.e. leave and license agreements at Exhibits-40, 41 and 42, show a clear intention to deprive the defendant (licensee) of an interest in the property. The covenants of leave and license agreements do not show that the defendant was left in exclusive occupation of the suit property. Evidence reveals, that during the subsistence of third leave and license agreement, plaintiff had constructed loft in the suit property. It clearly shows no interest in the suit property was created in his favour and he had mere right to occupy the suit property. Intention assumes importance in differentiating between the two transactions. This is made clear by the Apex Court in the case of Puran Singh Sahni v. Sundari Bhagawandas Kriplani reported in MANU/SC/0541/1991 : (1991) 2 SCC 180.

"The intention of the parties in making the agreement is determinative of the question whether it was a lease or licensee. The test of exclusive possession though of significance, is not decisive. By mere use of the word lease or 'licensee' the correct categorisation of an instrument under law cannot be affected. While interpreting the agreement the court has also to see what transpired before and after the agreement.... The best interpretation is made from the context. The intention of the parties to an agreement has to be gathered from the terms of the agreement construed in the context of the surrounding, antecedent and consequent circumstances. The crucial test would be what the parties intended. If in fact it was intended to create an interest in the property, it would be a lease, if it did not, it would be a licensee.... What was given to the licensee was the use of the flat with furniture, fittings etc., which could not be said to have created any interest in the flat though in effect the use continued for a stipulated period of time."

IN THE HIGH COURT OF BOMBAY

Second Appeal No. 94 of 2018

Decided On: 10.04.2019

 Vijay Kisan Sabale  Vs.  Janabai Shivaji Shitole

Hon'ble Judges/Coram:
Sandeep K. Shinde, J.

Citation: 2019(5) MHLJ 872
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Friday, 20 September 2019

How to ascertain whether particular agreement is lease deed or leave and licence agreement?

Here, the residential portion was let out only as a stopgap
arrangement, and the licence was terminable on the happening of a
contingency. That contingency—the return of the landlady’s son—will
terminate the agreement, the agreement period notwithstanding.
Besides that, there have been restrictions on the use: for example, how
and only for what purpose the bathroom could be used.
70. In Tulsi, the Supreme Court has held that a licensee gets the
possession only with the consent of the licensor and is liable to vacate

when so asked. Then, Shrikant contends that he has had uninterrupted
possession. According to him, though the alleged licence expired in
1989, until 1994 his possession had not been disturbed. That said, once
it is a licence, merely because the licensor has not asked the licencee to
vacate soon after the licence period does not transform the licence into
lease. The length of the period is not, I must say, a determinative factor.
71. In Achintya Kumar Saha, the Supreme Court has reiterated
that the nature of lease and licence to be gathered from surrounding
circumstances. In Amratlal Valji, this Court has relied on the Supreme
Court’s proposition in C.M. Beena’s case. It has held that the difference
between lease and licence is to be determined based on the document
and surrounding circumstances.
(b) What sort of possession does the occupier have?
72. Shrikant contends that it would have been impossible for him
to enjoy the property, had he not been in possession. A person’s
occupying a residential property speaks volumes about that occupier’s
possessing the property, and enjoyment without possession, according
to him, is unthinkable and impracticable.
73. In this context, I may note that there are many shades of
possession: say, corporeal possession, incorporeal possession,
constructive possession, adverse possession, de facto possession, de jure
possession, mediate possession, and immediate possession. Indeed,
immediate possession is a direct or primary possession. The person in
direct possession has a higher control over the thing possessed. It means
there is no intermediary or medium. On the contrary, if someone
possesses something through another, the thing remains in possession
of another. That is, the possessor has a lesser control over the thing he
has physically possessed, though.
74. Lexically speaking, ‘possession’ is a chameleonhued
word. G.
W. Paton in his A Textbook of Jurisprudence has ‘pessimistically states’

that the search for its proper meaning is likely to be a fruitless one.[26]
The expression 'possession' is a polymorphous term which assumes
different colours in different contexts. It may carry different meanings
in contextually different backgrounds. It is impossible, as was observed
in Superintendent & Remembrancer of Legal Affairs, West Bengal v. Anil
Kumar Bhunja[27], to work out a completely logical and precise
definition of "possession" uniformly applicable to all situations in the
context of all statutes.
75. As noted in Gunwantlal v. The State of M.P.[28], possession in
a given case need not be physical possession but can be constructive,
having power and control over the article in case in question, while the
persons to whom physical possession is given holds it subject to that
power or control. That is, the word 'possession' means the legal right to
possession. In an interesting case, it was observed that where a person
keeps his firearm in his mother's flat which is safer than his own home,
he must be considered to be in possession of the same. (See Sullivan v.
Earl of Caithness.[29]
76. Here, I must hold that what Shrikant has is mediate
possession, like the mother’s possessing the son’s firearm in Sullivan. To
conclude, his possession is mediate and permissive.

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO. 2219 OF 2006

Shrikant Dattatraya Deshpande  Vs  Shalini Waman Bhat 

CORAM
: DAMA SESHADRI NAIDU, J.
DATE OF PRONOUCEMENT : 13th September 2019.
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Sunday, 7 July 2019

Whether unregistered leave and licence agreement is admissible in evidence?

The contention of the learned Advocate for the petitioner that the absence of registered written agreement would render of license to be invalid and therefore, it would result in the absence of jurisdictional fact to enable the Competent Authority to entertain the application under Section 24 of the said Act, cannot be accepted. The jurisdictional fact which is required for the Competent Authority to entertain the application for eviction under Section 24 of the said Act is the expiry of license for residence in favour of the person occupying the premises and moment the same is disclosed based on whatever material placed before the competent authority, it will empower the competent authority to take cognizance of such application and to proceed to deal with the matter. Absence of registration or even the agreement being not in writing, that would not render the license to be invalid. Undoubtedly, expiry of licence presupposes existence of license prior to its expiry. However, the existence of licence does not depend upon its record in writing or registration thereof. It depends upon the availability of permission by the landlord to another person to use the landlord's premises for consideration and moment those factors are established, the person using the premises would be the licencee within the meaning of the said expression under the said Act. Obviously, the written record in relation to the agreement of licence would be the conclusive proof about the terms of licence and in case of registration of such agreement would help the landlord to avoid the consequences stipulated under Section 55(2) and (3) of the said Act. This is apparent from the definition of the term "Licensee" under Section 7(5) of the said Act which nowhere requires the license granted to occupy the premises for license fee or charge to be necessarily in writing or the agreement to have been registered. If the contention of the learned Advocate for the petitioner is accepted, the provisions of sub-section (2) of Section 55 of the said Act as well as the Clause (b) to the Explanation of Section 24 would be rendered otiose. No provision of law can be interpreted to nullify the affect thereof or to render the provision to be nugatory."

17. In paragraph-15, the contention advanced on behalf of me licensee that the provisions regarding requirement of registration of leave and licence agreement found in Section 55(1) of the Act will have to be read along with the list of compulsorily registrable documents under Section 17 of the Registration Act, 1908 was not accepted. It was observed that while providing for the consequences of failure on the part of the landlord to get such agreement registered, the provisions of law in the said Act nowhere exclude unregistered agreement of leave and license to be inadmissible in evidence. On the contrary, the said agreement has been made specifically admissible under Clause (b) of the explanation to Section 24 of the Act which is not in consonance with the provision of law comprised under Section 49 of the Registration Act, 1908. If it was the intention of the legislature that the provision regarding the requirement of registration of leave and license agreement has to be read along with Section 17 of the Registration Act, 1908, nothing would have prevented the legislature to introduce amendment to Section 17 itself or at least to make such agreement inadmissible in the evidence rather than specifically providing for admissibility of such document in evidence as being a conclusive proof of the facts stated therein irrespective of the fact that the agreement is not registered.

IN THE HIGH COURT OF BOMBAY

Writ Petition No. 7087 of 2008

Decided On: 06.07.2018

 Vimalaben Gosalia  Vs. Veena Dushyant Malgonnkar

Hon'ble Judges/Coram:
R.G. Ketkar, J.

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Thursday, 4 July 2019

Whether carbon copy of leave and licence agreement is admissible in evidence?

Relying on paragraph 5 of the Affidavit Of Examination In Chief of the Plaintiff, it was contended that the Plaintiff has specifically admitted the signature on the Leave and License Agreement and what was produced during cross examination was the carbon copy and the Plaintiff has admitted his signature thereon. Relying upon section 62 of the Indian Evidence Act, 1872, it was submitted that carbon copy was itself primary evidence and, hence, it has rightly been directed to be exhibited. It was submitted that in any case, the carbon copy would be admissible as Secondary Evidence in view of Section 63(2) and since the Plaintiff failed to produce the original despite service of notice, the Plaintiff was not entitled to oppose the production of the carbon copy.

In view of the aforesaid legal position and in the peculiar facts of this case, where the Plaintiff has himself pleaded that the document is a camouflage, once the Plaintiff has admitted his signature on the carbon copy, the document stands proved and has been rightly exhibited.

IN THE HIGH COURT OF BOMBAY

Writ Petition No. 3190 of 2011 with Civil Application No. 956 of 2011

Decided On: 14.11.2011

Dinesh Vasantrai Bhuta  Vs.  Vasantben Harvilas Jani

Hon'ble Judges/Coram:
G.S. Godbole, J.
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Monday, 6 May 2019

Whether landlord can seek eviction of licensee if licence agreement is not registered?

 Undisputedly, the alleged license in favour of the petitioner was granted since 1st April, 2001 i.e. much after the enactment of the said Act. Undisputedly, the agreement in that regard was executed in writing on 3rd April, 2001. In other words, the first requirement of Section 55(1) was duly complied with by the parties. It is also undisputed fact that agreement was lodged for registration 31st December, 2002. In terms of Section 23 of Registration Act, a document is required to be presented for registration within four months from the date of its execution and in case of unavoidable circumstances, with the leave of the Registrar, it can be presented within the period of four months immediately after expiry of the initial period of four months. Obviously, a document required to be registered has to be presented for registration maximum within a period of eight months from the date of its execution. If the document is not so presented for registration, obviously, consequences provided under Section 49 of the Registration Act, 1908 would follow. In the case in hand, Undisputedly, the agreement was not presented within eight months. The document was executed on 3rd April, 2001. It was presented for registration on 31st December, 2002, nearly after 20 months after its execution. Being so, the document could not have been registered. However, as already observed above, non-registration of the agreement will not affect the right of the landlord to seek eviction of the licensee on the expiry of the license period nor the delay in presentation the agreement for registration will come in the way of the competent authority in taking cognizance of the application of the landlord on expiry of the licensee to the person in occupation of the premises of the landlord.

IN THE HIGH COURT OF BOMBAY

Writ Petition No. 3151 of 2004

Decided On: 23.12.2004

Raj Prasanna Kondur Vs. Arif Taher Khan and Ors.

Hon'ble Judges/Coram:
R.M.S. Khandeparkar, J.

Citation: 2005(4) BomCR 383
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Friday, 19 April 2019

Whether breach of undertaking given in consent decree amounts to contempt of court?

Mr. Nedumpara, learned Counsel for the Respondents, argues that the order passed by this court on 27 September 2012 is a consent order. Learned Counsel submits that a consent order merely records an agreement between the parties. Learned Counsel submits that merely because in its body, the word 'undertaking' is included, the order does not undergo any change; it is still a consent order passed on a compromise between the parties. Learned Counsel submits that no contempt can be alleged of any such order; such order can only be executed by the court. This controversy has finally been laid to rest by the Supreme Court in case of Rama Narang Vs. Ramesh Narang MANU/SC/1960/2006 : (2006) 11 Supreme Court Cases 114. The definition of civil contempt under Section 2(b) of the Contempt of Courts Act, 1971, as noted by the court in that case, provides for two categories of cases, first, any willful disobedience to a process of court, and second, any breach of an undertaking given to a court. The Supreme Court held that the word 'any' indicated the wide nature of the power. No distinction could be statutorily drawn in this behalf between an order passed after adjudication and an order passed by consent. Any wilful violation of any order or decree would be tantamount to contempt. A compromise decree or order is as much a decree or order as a decree or order passed on adjudication, and not merely an agreement between the parties; in passing a decree by consent, the court adds its mandate to the consent so that the consent decree may be said to be composed of both command and contract. A consent decree, in other words, is a contract with the imprimatur of the court added to it. By passing a decree in terms of consent terms, the court authorises and approves the course of action consented to. Just as an order or decree passed on adjudication is executable under the Code of Civil Procedure, even a consent order or decree is of course executable, but merely because of that, it does not take away the jurisdiction of the court to deal with its violation or breach under the Contempt of Courts Act, provided the court is satisfied that the violation or breach complained of is such as would warrant a punishment under Section 13 of that Act. The present consent order is no different. Besides, the breach alleged in the present case is not merely of the consent order, but of an express undertaking given to the court and which was recorded and accepted by it in the consent order. A willful breach of an undertaking given to a court clearly and unequivocally attracts its contempt jurisdiction.

IN THE HIGH COURT OF BOMBAY

Contempt Petition No. 29 of 2016 in Suit No. 2503 of 2012

Decided On: 31.10.2018

 Swaranjeet Singh  Vs.  Melco Technologies India Pvt. Ltd. and Ors.

Hon'ble Judges/Coram:
S.C. Gupte, J.

Citation: 2019(2) MHLJ 277
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Sunday, 9 December 2018

Whether incorrect interpretation of leave and licence agreement is binding on licensor?

Mr. Seervai then relied upon Section 55 of the Maharashtra Rent Control Act, 1999, which reads as under:

55. Tenancy agreement to be compulsorily registered.-(1) Notwithstanding anything contained in this Act or any other law for the time being in force, any agreement for leave and licence or letting of any premises, entered into between the landlord and the tenant or the licensee, as the case may be, after the commencement of this Act, shall be in writing and shall be registered under the Registration Act, 1908 (XVI of 1908).

(2) The responsibility of getting such agreement registered shall be on the landlord and in the absence of the written registered agreement, the contention of the tenant about the terms and conditions subject to which a premises have been given to him by the landlord on leave and licence or have been let out to him, shall prevail, unless proved otherwise.
 Secondly, and more important, is the fact that the reliance upon Section 55(2) in the facts of the present case, is entirely misconceived. Under Section 55(2) if the agreement is not registered "the contention of the tenant about the terms and conditions subject to which a premises have been given to him by the landlord on leave and licence or have been let out to him, shall prevail, unless proved otherwise". The term "contention" in Section 55(2) refers to contentions of fact and not of law. Construction of the terms and conditions of a contract are questions of law. A court cannot be bound by an erroneous construction of the contract.
19. In this case, there is no dispute between the parties as to the terms of the agreements. It is not the company's case that any terms other than those contained in the said leave and licence agreement were agreed upon between the parties. In other words, the submission was not based on the existence of an independent term. The first contention raised by Mr. Seervai was based on the construction of admitted terms. I have held this construction to be erroneous. There is nothing in Section 55 which remotely suggests that even an incorrect interpretation of an agreed/admitted term is binding on the licensor.

IN THE HIGH COURT OF BOMBAY

C.P. No. 898 of 2008

Decided On: 12.02.2009

 Corporate Management Council of India P. Ltd. Vs.  Lonza India P. Ltd.
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Whether agreement will come into existence even if it is to be performed at future date?

Mr. Seervai contended that the said leave and licence agreements had not come into effect/existence. He based the submission on the fact that the agreements had been terminated prior to the commencement of the terms thereof.

10. The submission is not well founded. The agreements were executed by both the parties. The mere fact that they were to be performed at a later date cannot possibly lead to the conclusion that the agreements had not come into existence and that the parties were not bound by the terms thereof. There is a fundamental difference between an agreement coming into existence and the date for the performance thereof. Merely because obligations under an agreement are to be performed at a future date, it does not follow that the agreement has not come into existence upon the execution thereof or upon the terms and conditions thereof being agreed upon.

IN THE HIGH COURT OF BOMBAY

C.P. No. 898 of 2008

Decided On: 12.02.2009

 Corporate Management Council of India P. Ltd. Vs.  Lonza India P. Ltd.

Hon'ble Judges/Coram:
S.J. Vazifdar, J.

Citation: 2009(3) ALLMR 770
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Thursday, 8 November 2018

Golden rules for interpretation of quit notice

 The Hon'ble Apex Court has also, in the case of Bhagabandas Agarwalla v. Bhagwandas Kanu and Ors., MANU/SC/0269/1977 : (1977) 2 SCC 646, already held that,

"It is settled law that a notice to quit must be construed not with a desire to find faults in it, which would render it defective, but it must be construed ut res magis valeat quam pereat. The validity of a notice to quit, ought not to turn on the splitting of a straw. It must not be read in a hyper-critical manner, nor must its interpretation be affected by pedagogic pedantism or over-refined subtlety, but it must be construed in a common sense way."
22. In this reported authority also, the notice issued under Section 106 of the Transfer of Property Act, 1882, was challenged on the ground that, under the said Section, the notice to quit must expire at the end of the month of the tenancy, or, in other words, at the most, terminate the tenancy with effect from the expiration of the month of the tenancy. It was argued that, the notice to quit issued in the case required the Respondent to vacate the premises within the month of October, 1962 and intimated to him that otherwise he would be "treated as tress-passer from November 1, 1962", in respect of the premises. The question raised before the Apex Court was, therefore, 'what is the meaning and effect of the words "within the month of October 1962" in the context in which they are used in the notice to quit?'; 'Would these words mean that, the tenancy of the Respondent was sought to be terminated at the date earlier of the expiration of the month of October, 1962 and the Respondent is required to vacate the premises before such expiration?' While answering this question, the Apex Court held that,

"When the notice to quit requires the Respondent to vacate the premises within the month of October 1962, what it meant was that, Respondent could vacate any time within the month of October, 1962, but not later than the expiration of that month."
23. The last moment upto which the Respondent could, according to the notice to quit, lawfully continue to remain in possession of the suit premises was the mid-night of October 31, 1962 and hence, the Apex Court held that, it fails to see any difference between a notice asking the tenant to vacate within the month of October 1962 and a notice requiring a tenant to vacate latest by mid-night of October 31, 1962. Because, in both the cases, tenant would be entitled to occupy the premises upto the expiration of October 31, 1962, but not beyond it. Thus, it was held that, the notice makes an intention of the authors of the notice clear that they are terminating the notice only with effect from the end of the month of October 1962 and not with effect from any earlier point of time during the currency of that month and hence, the notice was legal and valid. It was held that, the 'notice to quit' is required to be judged for its validity, in the light of the well recognized principles of law.

24. Here in the case also, what the 'Agreement of Leave and License' provides is, "a one week's previous notice" in writing and the termination notice issued in this case calls upon the Respondents to handover peaceful and vacant possession of the suit premises "within 7 days from the date of receipt of the notice". Therefore, it necessarily follows that the Respondents were given clear one week's previous notice and they were called upon to handover vacant possession of the suit premises within 7 days from the receipt of the notice, meaning thereby, till the expiry of 7 days, they were entitled to remain in possession thereof. The day for them to vacate the possession of the suit premises arises only after expiration of 7 days and, accordingly, their license stands terminated only on the expiry of 7 days period and not before it. Therefore, in no way, such notice can be called as illegal or unlawful.

25. As a matter of fact, interpreting this notice in such a manner by holding that, it does not give a clear 7 days previous notice, is reading it in a very hyper-critical manner and not in a common sense way. As observed by the Apex Court here-in-above, the Appellate Court has construed it in this fashion only with a desire to find faults in it, so as to render it defective; whereas, the object must be to give it a meaningful interpretation, which is to be appealable to the common sense and should not revolt against the common sense. The Appellate Court has thus read it in a hyper-critical manner, which can be called, in the words of the Apex Court, as "splitting of the straw".

26. Surprisingly, no such contention that 'notice of termination' is not legal or valid was taken up by the Respondents also, either in their reply to the notice or even before the Estate Officer; presumably because, being persons of common sense, they also understood it in its correct perspective as giving them one week's previous notice in writing. It is disturbing that, the Appellate Court has entered into hair-splitting it, just to overturn the eviction order passed by the Estate Officer, despite negativing all other contentions raised by the Respondents to challenge the said order. The interpretation of any law or even of any notice has to be in tune with the understanding and perception of the common man and not bereft of it. Over-stretching the words and giving it an absurd meaning, which is not contemplated or which is not expected by the person, who is giving the notice or receiving the same, cannot be considered legal or proper. Therefore, this finding of the Appellate Court, being against the tenets established by law, has to be held as 'perverse' and required to be quashed and set aside.


IN THE HIGH COURT OF BOMBAY

Writ Petition No. 4905 of 2009

Decided On: 27.04.2018

The Municipal Corporation of Greater Mumbai Vs. Suhas Shridhar Rane and Ors.

Hon'ble Judges/Coram:
Dr. Shalini Phansalkar Joshi, J.

Citation: 2018(5) MHLJ 504
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Saturday, 27 October 2018

Whether small causes court can grant interim compensation during pendency of L.E.&C. Suit?

 In my opinion, the approach of the Appellate Court to say the
least is perverse. After extracting Section 74, still, the Appellate Court
observed that the question of awarding damages on the basis of breach
of contract is a matter of evidence and is to be appreciated in the
proceeding and the burden is on the party, who claimed damages. So at
this stage, the question of awarding damages does not arise. In my
opinion, the said finding is in the teeth of Section 74 of the Act. This is
more so when in paragraph 21, the Appellate Court observed that “At
this stage, we are bound by the facts that the leave and licence
agreement has been registered by the parties to the proceedings. So
parties to the proceedings are bound by the leave and licence
agreement”. In view thereof, the impugned order passed by the
Appellate Court deserves to be set aside 
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO.10718 OF 2018

Ida Celene Mathias Vs. Mobin Ahmed Khan 

CORAM : R. G. KETKAR, J.
DATE : OCTOBER 22, 2018

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Sunday, 7 October 2018

Whether licensee can be evicted forcefully if licence agreement has expired?

 It is a well-settled law in this country that where a person is in settled possession of property, even on the assumption that he had no right to remain on the property, he cannot be dispossessed by the owner of the property except by recourse to law.
IN THE SUPREME COURT OF INDIA

Civil Appeal No.1392 of 1974


Decided On: 09.08.1989

Krishna Ram Mahale  vs. Shobha Venkat Rao

Hon'ble Judges/Coram:
K.N. Singh and M.H. Kania, JJ.

Citation: AIR 1989 SC 2097
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Sunday, 23 July 2017

Whether party can be permitted to adduce evidence contradictory to leave and licence agreement?

Then there are judgments of this Court relied upon by the Counsel for the appellant; Ramesh Ramrao Hate v. Parvez B. Bhesania MANU/MH/0462/1996 : (1996)98BOMLR784 . Sails India v. Rita M. Rupani MANU/MH/0044/1997 : AIR1997Bom247 about conclusive nature of the leave and licence agreement as is defined in Section 13A2(3)(b) of the Bombay Rent Act. There cannot be any dispute that the legislative provision is absolutely clear that is the leave and licence agreement is conclusive proof of facts contained therein, meaning thereby that no party can be permitted to adduce evidence to contradict the said document.
IN THE HIGH COURT OF BOMBAY

Civil Revision Application No. 40 of 2000

Decided On: 12.09.2003

Alban Joseph Gonsalves
Vs.
 Rallis India Ltd.

Hon'ble Judges/Coram:
D.G. Deshpande, J.




Citation: 2004(1) ALLMR702
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