Full Order Text
Final Order 1 · 23 Feb 2022 · CNR MHCC010044882019
Order Details: Copy of Judgment Pdf Text: 1 Received on : 16.04.2019* Registered on : 23.04.2019 Decided on : 23.02.2022 Duration : Y:02 M:10 D:07 IN THE BOMBAY CITY CIVIL COURT AT BOMBAY Misc. Appeal No. 133 of 2019 (CNR No.MHCC010044882019) Anil Visaria Age: 45, Occupation : Business At: 6 Shyamrao Vitthal Marg, ..Appellant Lamington Road, Mumbai 7 (Org. Opponent No.2) Versus 1. LIC Of India a statutory corporation established under the Central Act No.XXXI of 1956 having its Western Zonal Office at 'Yogakshsema' West Wing, Jeevan Bima Marg, Mumbai 400021 (Org. Applicant.) 2. The Legal Heirs Of Shri D. N. Mhatre (decd) Room No.1/2, Ground Floor, Sita Chawl, New Badamwadi, VP Road, Girgaum Mumbai 4 (Org. Opponent No.1) 3. Estate Officer Western Zonal Office at 'Yogakhsema' West Wing, Jeevan bima Marg, Mumbai 400021 ..Respondents Mr.S.R.Page, Ld.Advocate for appellant. Mr.K.N.Kandekar,Ld. Advocate for respondent No.1/LIC Coram : H.H.THE PRINCIPAL JUDGE URMILA S. JOSHIPHALKE (C.R.NO.19) Dated : 23rd February, 2022 -- 1 of 32 -- 2 JMisc.Appeal No.133/2019 JUDGMENT By preferring this appeal, the appellant has challenged the order passed by the Estate Officer in Case No.3 & 3A of 2016 dt. 29.3.2019 by which opponent No.1 and his legal heirs and Opponent No.2 are evicted from the application premises i.e. Room No.1/2, Ground Floor, Sita Chawl, New Badamwadi, V.P. Road, Girgaum, Mumbai 4 and also directed to pay damages alongwith interest. The parties are hereinafter referred as per their original nomenclature. 2. Brief facts of the case are as follows: Applicant i.e. Life Insurance Corporation of India has filed an application for eviction against opponents on the ground of unauthorizedly subletting the application premises by opponent No.1 to opponent No.2. As per the contention of the applicant/LIC, Life Insurance Corporation is a Statutory Corporation established by an Act of Parliament being the Central Act No. XXXI of 1956, called the Life Insurance Corporation Act, 1956. The applicant is wholly owned by the Central Government. Opponent No.1 are the legal heirs of late Shri D.N.Mhatre. Late Shri D.N.Mhatre was the applicant's monthly tenant and authorized occupant in respect of the premises situated at Sita Building having tenancy Code No.3306 at New Badamwadi, V.P.Road, Girgaum, Mumbai400 004. Said Sita Building is owned by the applicant and covered under the definition of “Public Premises” within the meaning of Sec. 2(e) of The Public Premises(Eviction of Unauthorized Occupants) Act, 1971. It is contention of the applicant that during inspection of the application premises carried out by the applicant, Building Inspectors on various dates in the year 2011 and 2013, it was observed that the application premises was found locked. Building Inspectors reports dt.14.7.2011, 4.8.2011, 7.9.2011, -- 2 of 32 -- 3 14.12.2011, 21.3.2013, 2.8.2013 and 13.12.2013 revealed that deceased Shri D.N.Mhatre and his legal heirs had parted with possession of the application premises to opponent No.2 who is presently occupying the said premises as a godown for storing electronic items. Recent Inspection Report dt. 8.10.2015 of the Building Inspector revealed that only Room No.2 has been unlawfully parted with by Opponent No.1 to Opponent No.2. Room No.1 of the application premises is still in possession of original tenant and his legal heirs. Thus, Opponent No.1 has allowed Opponent No.2 to use and occupy part of the application premises for commercial purpose and also changed the usage of the application premises from residential to commercial in contravention of the terms and conditions of the tenancy. It is further contention of the applicant that Opponent No.1 has also committed default in payment of monthly rent. He is in arrears of rent since May, 2008. The applicant has filed on record the statement showing the arrears of rent. Thus, opponents have committed clear breach of the terms and conditions of tenancy (ii) It is contention of the applicant/LIC that as opponent No.1 and his legal heirs committed violation of terms and conditions of tenancy, the applicant issued Notice of Termination on 14.7.2015 through its Advocate and terminated the tenancy. The notice was duly served on the opponents through R.P.A.D. The notices sent to the opponents have been returned undelivered by the Postal Authorities with the remark “Left”. The Notice of Termination was also pasted on the conspicuous part of the application premises on 25.7.2015 and pasting remarks are also filed on record. Thus, it is claimed that as opponents have committed breach of tenancy, hence, they are liable to be evicted from the application premises and therefore, the -- 3 of 32 -- 4 JMisc.Appeal No.133/2019 applicant/LIC constrained to file the application for eviction before the Estate Officer. (iii) Estate Officer has issued show cause notices to the opponents on 9.11.2016. Said Show Cause notices are sent to Opponent No.1 by Speed Post and hand delivery at the address of the application premises which were returned undelivered. Show cause notices sent to Opponent No.2 by Hand Delivery were served by the Building Inspector at the shop address of Opponent No.2 as the application premises was found locked. Show Cause notices sent to Opponent No.2 at the application premises by Speed Post was served on Opponent No.2 by the Postal Authorities on 16.11.2016 and pasting report is also on record. (iv) In response to the said show cause notice, the legal heirs of opponent No.1 failed to appear and contest the application. Opponent No.2 appeared and filed written statement before Estate Officer. Opponent No.2 denied that opponent No.1 has parted with possession of the application premises to him. It is submitted by Opponent No.2 that both the rooms are presently with Opponent No.1. He is not aware of any contravention of terms and conditions. It is further contended that he is only caretaker of the said premises. He has also filed on record additional written statement in addition to earlier written statement. It is submitted that no direct notice is issued to him and therefore, initiation of proceedings under The Public Premises Act is bad in law and ought to be dismissed. (v) Estate Officer has recorded the evidence, and after hearing both the sides pleased to allow the eviction application. Being aggrieved and dissatisfied with the said order passed by the Estate Officer, present -- 4 of 32 -- 5 appeal is preferred by Opponent No.2 on the ground that Estate Officer has not appreciated the evidence properly and wrongly come to the conclusion that Opponent No.1 has unauthorizedly parted with possession of part of the application premises to him and he is using the same as godown for storing electronic items and thereby changed the usage of application premises from residential to commercial. The Estate Officer has also failed to appreciate that termination notice is not properly served on the opponents and therefore, entire proceedings is bad in law and liable to be set aside. It is further contention of Opponent No.2 that he is not at all liable to pay any damages. He is only caretaker of the application premises. It is further submitted that Estate Officer has wrongly relied upon the Inspection Reports and hence, the order passed by the Estate Officer deserves to be set aside. 3. Heard Learned Advocate Shri S.R.Page for opponent No.2/appellant. He submitted that present appeal is preferred by Opponent No.2. During pendency of the present appeal, applicant/LIC i.e. respondent No.1 herein has taken the forcible possession of the application premises despite the fact that the application for stay was pending for orders and thereby subjudice before this Court. It is further submitted that Estate Officer ought to have seen that Valuer of the applicant/LIC has not even entered in the said premises to check the total area and condition of the application premises to evaluate the actual damages and as per Rule 8 of The Public Premises Rules, the nature, size and standard of the accommodation available in such premises have to be inspected which has not been done, hence, the valuation is incorrect. It is further submitted that witness of applicant/LIC has admitted that there is no document with applicant/LIC to show that the terms and conditions of tenancy as -- 5 of 32 -- 6 JMisc.Appeal No.133/2019 printed on rent bill have been agreed by Opponent No.1 i.e. the legal heirs of Shri D.N.Mhatre. Thus, no evidence has been brought on record by the applicant/LIC to prove that opponent No.1 ever agreed to retain user of the application premises only for a certain purpose. Applicant/LIC has failed to prove that change of user was not permitted, hence breach of such term of tenancy is also not proved by it and therefore, the impugned order passed by the Estate Officer deserves to be set aside. He further submitted that witness of the applicant/LIC has admitted that Inspection Reports are incomplete and not based on exact and complete inquiries but on his personal assessment. The Valuer has also admitted during his crossexamination that market rent will be 5 10% less than rent calculated in the Valuation Report. Thus, entire termination of tenancy is illegal. Hence, the termination of tenancy is illegal and liable to be set aside. 4. On the other hand, Learned Advocate Shri Kandekar for the applicant/LIC submitted that LIC has filed application before the Estate Officer for eviction of the opponents and recovery of arrears of rent and for damages. The Composite Application was filed in respect of residential/application premises being Room No.1/2, Ground Floor, Sita Chawl Building, New Badamwadi, V.P.Road, Girgaum, Mumbai 400 004 admeasuring about 700 sq.ft. Carpet area belonging to applicant/LIC. The application premises is Public Premises as defined under Section 2(e) The Public Premises (Eviction of Unauthorized Occupants) Act, 1971. Deceased D.N.Mhatre was a monthly tenant and authorized occupant in respect of the application premises. After demise of Shri D.N.Mhatre, applicant/LIC by its various letters called upon the legal heirs and representatives of Late Shri D.N.Mhatre to furnish their names and addresses but there was no response from the legal heirs of -- 6 of 32 -- 7 Shri D.N.Mhatre. None of legal heirs of Late Shri D.N. Mhatre submitted their names and addresses to the applicant. Meanwhile, opponent No.2 Shri Anil Visaria vide his letter dt.4.1.2016 informed the applicant/LIC that he has occupied part of the application premises and submitted his PAN, electricity bill in respect of the application premises with request to applicant/LIC to transfer the application premises in his name. Thereafter the Building Inspector of applicant/LIC visited the application premises and found that Opponent No.2 is using the application premises for storing electronic items. The application premises was being used by the person with whom the applicant/LIC had no privity of contract, the usage from residential to commercial was changed, whereabouts of the legal heirs of deceased Shri D.N.Mhatre were not known, deceased Shri D.N.Mhatre was in arrears of rent which was against the tenancy terms and conditions and therefore, applicant/LIC issued the Notice of Termination on 14.7.2015 in the name of legal heirs of Shri D.N.Mhatre and copy was endorsed to opponent No.2. Said Notice of Termination dt.14.7.2015 was also pasted on the conspicuous part of the application premises and applicant/LIC filed Composite Application for eviction of legal heirs of Late Shri D.N.Mhatre as well as opponent No.2. 5. Learned Advocate Shri Kandekar for applicant/LIC further submitted that notices under Sections 4 and 7 were issued by the Estate Officer to all the opponents in the Composite Application. The show cause notices were served on all the opponents in the Composite Application. Opponent No.1 chosen not to appear before the Estate Officer. Opponent No.2 participated in the proceedings through his Advocate and filed his written statement. Thus, principles of natural justice have been followed by the Estate Officer. The evidence is also -- 7 of 32 -- 8 JMisc.Appeal No.133/2019 adduced by the applicant/LIC as well as by Opponent No.2. During crossexamination, Opponent No.2 has admitted that electronic items are stored in the application premises. Thus, his crossexamination shows that usage of the application premises was changed from residential to commercial purpose. The applicant/LIC has also examined Valuer in support of its claim towards the damages. The Valuer being expert in the field has scientifically calculated the damages at the rate of Rs.1,94,731/p.m. The total amount towards damages is Rs.98,38,188/ from the date of Notice of Termination till the order passed by the Estate Officer on 29.3.2019. Opponent No.2 has not examined any Valuer in support of his contention. The applicant/LIC has also claimed the arrears of rent. The terms and conditions have been signed by the original tenant. The terms and conditions prohibit the original tenant to assign, sublet or part with possession of the demised premises or any part thereof even where allowed by the law without the previous consent in writing of the Corporation i.e. LIC. Opponent No.2 has issued a letter to the applicant/LIC and admitted that he has occupied the part premises of Room No.1/2 belonging to D.N.Mhatre and requested the applicant/LIC to transfer tenancy in his name. Nothing more than this require to prove parting with possession, assigning of the application premises without prior permission of the applicant/LIC. Thus, applicant has proved that opponent No.2 is unauthorized occupant of the application premises. As the applicant/LIC had called upon to furnish the names of the legal heirs and representatives of Late Shri D.N.Mhatre, neither the legal heirs and representatives have come forward nor they have claimed any right, title, interest in the application premises by participating in the proceedings before the Estate Officer. However, the applicant/LIC has added the legal heirs of Opponent No.1 in the proceedings before the Estate Officer. Opponent No.2 has -- 8 of 32 -- 9 participated in the proceedings and thus, Estate Officer has followed the principles of natural justice. The theory of caretaker developed by opponent No.2 is only to come out from the clutches of the proceedings. Opponent No.2 was in occupation of the application premises whose occupation was unauthorized. He has no authority to use, occupy the application premises. Thus, the applicant/LIC has proved its case that original tenant has parted with possession of application premises without its consent and he was in arrears of rent. Therefore, order passed by the Estate Officer is legal and no interference is called for. 6. After hearing both the sides, following points arise for my consideration and I answer the same as follows: POINTS: FINDINGS 1. Whether the applicant/LIC proves that legal heirs and representatives of original tenant contravened the terms and conditions of tenancy agreement and thereby committed breach and thus, they are in unauthorized occupation of the application premises? ..In affirmative. 2. Whether the applicant/LIC has proved that Opponent No.2 is in unauthorized occupation of the application premises, as he is occupying the application premises without consent of the applicant? ..In affirmative. 3. Whether the order passed by the Estate Officer is bad in law and liable to be interfered with? ..Partly in affirmative. Impugned order is modified to the extent that opponent No.2/appellant is liable to pay damages considering the area which is in his possession. 4. What order ? As per final order. -- 9 of 32 -- 10 JMisc.Appeal No.133/2019 R E A S O N S AS TO POINT NOS.1 AND 2: 7. Applicant/LIC has filed application for eviction on the ground that the application premises was given on monthly rent basis to late Shri D.N.Mhatre. Shri D.N.Mhatre is not alive. His legal heirs are in occupation of the application premises but they have parted with the possession of the application premises with Opponent No.2 illegally in contravention of terms and conditions of tenancy. Other ground raised by the applicant/LIC is that original tenant i.e. Late Shri D.N.Mhatre is in arrears of rent and on that ground also, applicant is entitled to claim the relief of eviction. 8. To prove the case, the applicant has examined Shri Vinod Bhoyar, Administrative Officer, LIC. He filed affidavit of examination in chief in support of his contention. He reiterated the contentions raised in the application. Sum and substance of his evidence is that applicant/LIC is the owner of application premises being Room No.1/2, Ground Floor, Sita Chawl, New Badam Wadi, V.P.Road, Mumbai 400 004. The application premises is identified in its record as Tenancy Code No.3306. The application premises was given to Shri D.N.Mhatre on monthly rent basis on terms and conditions. The terms and conditions of tenancy were signed by Late Shri D.N.Mhatre. As per said terms and conditions, authorized occupant shall not assign, sublet or part with possession of the demised premises or any part thereof even where allowed by the law without the previous consent in writing of the Corporation i.e. LIC. It is further agreed by Late Shri D.N.Mhatre that rent is payable in full on the first day of each month. A grace period of 10 days will be allowed. If 10th day of the grace period for payment of rent falls on Sunday or Holidays, the rent will be payable on next -- 10 of 32 -- 11 following working day, failing which interest would become payable from due date i.e. the 1st day of the month at an appropriate rate as per the instructions issued from time to time. It is further agreed that if the tenant fails to pay rent continuously for 3 months, then applicant/LIC is at liberty to initiate the proceedings against him. His further evidence reveals that Building Inspector of the applicant/LIC visited the application premises on various dates and it revealed that legal heirs of opponent No.1 had parted possession of the application premises with Opponent No.2 who is presently occupying the application premises and using the said premises as godown for storing electronic items. Thus, late Shri D.N.Mhatre has unauthorizedly allowed Opponent No.2 to use and occupy application premises for commercial purpose when the application premises was let out for residential purpose. His further evidence shows that late Shri D.N.Mhatre is also in arrears of rent. Authority letter issued to Witness Shri Vinod Bhoyar is also filed on record. 9. The applicant/LIC has also relied upon the various letters which are issued to the legal heirs of late Shri D.N.Mhatre. Exh.A9 is the letter dt. 28.3.2000 issued to Sachin K. Mhatre by which he was requested to submitted certified copy of Ration Card which includes his name and names of other legal heirs of late Shri D.N.Mhatre. Another letter is dt. 31.5.1997 addressed to K.D.Mhatre and vide said letter, it is requested by the applicant/LIC to submit necessary documents to prove that his son Sachin Mhatre, grandson of Shri D.N.Mhatre was staying alongwith deceased Shri D.N. Mhatre at the time of his death in the application premises. Another letter is dt. 16.3.2002 issued to Shri K.D.Mhatre requesting him to submit necessary details regarding legal heirs. Similar letter is also issued on 11.7.2001. The applicant/LIC is -- 11 of 32 -- 12 JMisc.Appeal No.133/2019 also relied upon the letter issued by Opponent No.2 requesting the applicant/LIC to transfer tenancy in his name. Said letter is dt.5.1.2016 by which Opponent No.2 approached to Regional Manager (Estate) of the applicant/LIC and filed an application that he is occupying the part premises of Room No.1/2 belonging to Shri D.N.Mhatre and requested to transfer the tenancy in his name. He also enclosed his PAN Card and electricity bill for reference of the applicant/LIC and requested to take necessary action considering his application. 10 Thus, it is deposed by Shri Vinod Bhoyar, witness of the applicant/LIC that legal heirs of D.N.Mhatre and Opponent No.2 both have parted with possession of the application premises without consent of the applicant/LIC and thereby contravened the terms and conditions. Moreover, legal heirs of Shri D.N.Mhatre are in arrears of rent. After issuance of several letters by the applicant/LIC, legal heirs of Shri D.N.Mhatre have not responded and therefore, whereabouts were not known and hence, termination notice was pasted on the outer door of the application premises and pasting report is filed on record. Shri Vinod Bhoyar, Administrative Officer of the applicant has been cross examined at length. During his crossexamination, it came on record that from office record, he came to know that the application premises was let out to Shri D.N.Mhatre. He also deposed that he has not produced any record of Shri D.N.Mhatre showing that he is tenant of LIC but he is inherited tenant since the tenanted premises came in possession of LIC. 11 It also came in crossexamination of Shri Vinod Bhoyar that Shri D.N.Mhatre is monthly tenant and he has been allowed to use the application premises for residential purpose only. He cannot sublet the -- 12 of 32 -- 13 said premises to any other person without permission of landlord. Shri D.N.Mhatre has to pay the monthly rent regularly. If he pays the rent late beyond 21 days, he has to pay interest to LIC as per prevailing rate. Said witness has also enclosed copy of rent bill in Eviction Application and terms and conditions printed at the back thereof. It further came in his crossexamination that the tenant has sublet the application premises to Opponent No.2 for commercial purpose, when premises is basically a residential premises. He has not paid arrears of rent since May, 2008. It further came in his crossexamination that Building Inspector asked the unauthorized occupant i.e. Opponent No.2 to submit his visiting card, telephone bill, ration card and electricity bill but denied to submit the same and it is noted by the Building Inspector in his report. Subsequently, Opponent No.2 visited office of the applicant/LIC and submitted his I.D. proof and electricity bill. Copy of the same is available in its office record. It further came in his cross examination that Opponent No.2 has shop namely 'Rhythm Electronics' at S.V. Marg, (Kline Lane), Lamington Road, New Badam Wadi, Girgaum, Mumbai and he is using the application premises as a godown for storage of electronics and electrical products. He denied that notice is not issued to Opponent No.2. Said notice is at Exh.D. It further came in his evidence that notice was issued to the legal heirs of D.N.Mhatre. As applicant/LIC was not knowing exactly how many legal heirs are there of deceased tenant, and therefore, Notice of Termination has been issued by mentioning all legal heirs of Shri D.N.Mhatre. Thus, it appears from crossexamination of AW1 Shri Vinod Bhoyar that Opponent No.2 tried to bring it on record that there is no violation of terms and conditions of tenancy and applicant/LIC has no evidence to show that application premises was let out to opponent No.2. -- 13 of 32 -- 14 JMisc.Appeal No.133/2019 12 To show that opponent No.2 is in possession of the application premises, the applicant/LIC has examined Mr. Deepak Ajgaonkar, Building Inspector as witness No.2 and Mr. Sunil Nimje as Witness No.4. As per evidence of AW2 Deepak Ajgaonkar, he is working as Building Inspector for some of the Buildings including Sita Building situated at Badamwadi, Mumbai 400 002. He used to visit the application premises at regular intervals. He visited the application premises on 2.8.2013, 13.12.2013, and 24.12.2013. He has also taken the photographs of application premises during his visit. During his visit, one Mr.Anil Visaria was found in use and occupation of the application premises. He also submitted his report to the Estate Department. He visited the application premises on 2.8.2013 and found that the application premises was closed and locked. He submitted report accordingly. Again he visited on 13.12.2013 and found the application premises is closed and locked. On 23.12.2013 he visited the application premises at about 2.30 p.m. and found that said premises was unauthorizedly occupied by one Mr. Anil Visaria i.e. opponent No.2, the owner of Rhythm Electrical and Electronic Shop and it is used for storage of electrical and electronic goods i.e. used as godown. He again visited the application premises on 31.1.2014 and found that Opponent No.2 is in use and occupation of the application premises. Accordingly, he submitted the report. In support of his contention he filed on record the Inspection Reports dt.1.8.2013,14.7.2011, 4.8.2011, 7.9.2011, 14.12.2011, 21.3.2013, 2.8.2013, 13.12.2013, 20.8.2010, 15.9.2011, 24.12.2013, 30.1.2014 alongwith photocopies of the photographs of application premises. All these Inspection Reports show that on some of the occasions, application premises was found in locked condition. Inspection Report dt.20.8.2010 shows that one Shri Anil Visaria is occupying Room No.2 of the said premises. The said Inspection Report -- 14 of 32 -- 15 also shows that premises is being used for commercial purpose as godown to store electronic items. Inspection Report further shows that Kadappa is fixed inside the wall in one room, new cabin is created by installing plywood. Inspection report dt.15.9.2011 also shows that during his visit, he met Opponent No.2 Anil Visaria who informed him that said premises has been occupied by Shri Sachin Kishore Mhatre and at the time of his visit, he found that said premises has been sublet to Shri Anil Visaria i.e. Opponent No.2 and he is using the said premises for storing electronic goods. Inspection Report dt.24.12.2013 also shows that Opponent No.2 is using Room No.2 for storing electronic goods. Inspection Report dt. 30.1.2014 also shows that Opponent No.2 is in occupation of the said premises and using it as a godown. 13 AW2 Mr. Deepak Ajgaonkar, Building Inspector is cross examined at length. During his crossexamination, he stated that as a part of his duties, he has to inspect the premises of LIC and to check whether there is any unauthorized occupancy or illegal repairs in their premises. Regarding his authorization, he stated that Regional Manager, Estate Department, has appointed him as a Building Inspector to inspect and visit the premises owned by LIC or let out by original owners. His further crossexamination shows that as per letter submitted by the Estate Department to inspect the premises, the registered tenant is Shri D.N.Mhatre. During his visit, he found that Anil Visaria is in occupation of said premises. He visited the said premises personally to assess the occupation of the said premises. He met Shri Anil Visaria and his staff members who confirmed the occupation of the said premises and also inquired with the neighbouring occupants. He further stated that inquiry with the neighbouring occupants was not required as the unauthorized occupant was himself present at the time of inspection. He -- 15 of 32 -- 16 JMisc.Appeal No.133/2019 denied that the conclusion drawn by him in his inspection report, regarding the occupation of the application premises is purely based on the alleged information provided to him by some unknown persons. He stated that he inquired with the said person regarding the details of the occupant to which he informed that he is working in a shop namely 'Rhythm House' which belongs to Anil Visaria and the goods stored inside the said premises also belong to him. 14 Applicant/LIC has also examined Shri Sunil Nimje as Witness No.4 who is also Building Inspector. His evidence is also of the similar nature that he visited the application premises on 20.8.2010 and observed that Anil Visaira i.e. Opponent No.2 is occupying the said premises. Accordingly, he submitted his report. In support of his contention, he also filed on record the inspection reports. During his crossexamination, he stated that he is aware that application premises is shown in the name of 'D.N.Mhatre' as per record of LIC. He made efforts to find out D.N.Mhatre but he could not get any information about him. His evidence further shows that during his visit to the application premises, it revealed to him that Anil Visaria is occupying and using the said premises for storing electrical items. 15 To prove the aspect of damages, the applicant/LIC relied upon the evidence of AW3 Shri R.C. Malhotra, Chartered Architect and Valuer. As per his evidence, he personally inspected, surveyed and measured the said residential application premises on 7.10.2015. The area of room is approximately 700 sq.ft. Carpet area. He found that Room No.2 was occupied by Shri Anil Visaria. Accordingly, he prepared Valuation Report. His Valuation Report is on record which shows that he has assessed the value of total premises i.e. 840 sq.ft. Built up area -- 16 of 32 -- 17 and accordingly issued the Valuation Report. During his cross examination, it came on record that on the basis of his 50 years experience, he drawn the assumption of the age of the building wherein the application premises is located. He has seen the building structure and assessed the age of the building. He has not inquired with LIC about the age of the building. He admitted that he has not prepared report pertaining to the measurement of the application premises but he took measurements while visiting the premises and it is given in the Valuation Report. It further came on record during his evidence that Valuation Report prepared by him is based on actual figures from Maharashtra Government, Ready Reckoner and record of LIC and after utilizing the same, he has prepared the Valuation Report. He denied that report is based on assumptions and presumptions. It further came on record that Ready Reckoner gives the market rate of properties which are normally on the lower side as compared to the actual market rate. He admitted that market rent calculated from Ready Reckoner rate is always less than the market rent normally. Therefore, market rent will be 5% to 10% less than the rent calculated in the Valuation Report. It specifically came on record in his crossexamination that he saw only Room No.2 as Room No.1 was locked. Thus, evidence of AW1 Shri Vinod Bhoyar, AW2 Mr. Deepak Ajgaonkar, and AW4 Mr. Sunil Nimje shows that Opponent No.2 is in possession of Room No.2 and Room No.1 was found locked. Evidence of AW3 Shri R.C. Malhotra, Architect and Valuer also shows that he only seen Room No.2 and Room No.1 was locked. Thus, witnesses of applicant/LIC categorically stated that Opponent No.2 is only in possession of Room No.2 admeasuring 450 sq.ft. and room No.1 was found locked. 16 Opponent No.2 also entered into witness box and also filed -- 17 of 32 -- 18 JMisc.Appeal No.133/2019 affidavit of examination in chief. His evidence is that no notice is issued to him and no correspondence was addressed to him by the applicant/LIC. He further stated that applicant/LIC is completely aware that D.N.Mhatre expired in 1992 and his grandson Sachin Mhatre is the legal heir (tenant) of the application premises who has filed an application for transfer of tenancy in his name. He is a close friend of Sachin Mhatre and therefore, he is permitted to look after and take care of the application premises as and when Sachin Mhatre is out of station. There are two rooms and inner room is kept under lock and key is with Sachin Mhatre which has not been inspected by officials of the applicant/LIC. He is also crossexamined by the applicant/LIC. During his crossexamination, it came on record that since last 20 years, he is running the business in the name and style as “Rhythm Electronics'. It has further come in his crossexamination that the application premises belongs to his friend Sachin Mhatre and he is caretaker and said Sachin Mhatre has handed over keys to him and electronic items are stored therein. He specifically admitted that he did not claim any right in the application premises. It further came in his evidence that Mr. Sachin Mhatre is running business of import and export. He has not produced any documentary record to show that Sachin Mhatre is running business of import and export of electronic items. He admitted that he is not using the application premises and therefore, he is not unauthorized occupant. He stated that all the goods in the application premises are of Sachin Mhatre. He admitted that he has stated before Estate Officer that applicant/LIC was aware of his presence in the application premises. He also admitted that he was expecting Notice of Termination in his name. He denied that he at any point of time applied to the applicant/LIC for permission to occupy the application premises. He also admitted that no permission was granted by LIC to him to occupy and remain present in -- 18 of 32 -- 19 the application premises. He denied that he is using the application premises for storing electronic items. Thus, stand taken by Opponent No.2 that he is the only caretaker and entire items kept in Room No.2 belong to Sachin Mhatre but he is not having any document to show that said electronic items are of Sachin Mhatre. On the basis of evidence, opponent No.2 has challenged the action of the applicant/LIC on the ground that no notice was served on him. He is not concerned with the application premises but he is only caretaker thereof. Admittedly, he has not examined Mr.Sachin Mhatre who is given him the said premises only for taking care of and he is caretaker. He completely denied that at any point of time, he has filed any application for transfer of tenancy in his name. 17 After considering the evidence of both the sides, it has to be seen whether the applicant/LIC has succeeded in proving that Opponent No.2 is occupying the application premises for storing goods and he is unauthorized occupant. Learned Advocate Shri Page submitted that applicant/LIC has received consideration for transfer of title. He further submitted that no notice was issued to Opponent No.2. Even notices issued to Opponent No.1 or his legal heirs are not properly served on them. Notice of termination dt.14.7.2015 are not served either on Opponent No.1 or Opponent No.2. Show cause notices issued by the Estate Officer are not served on opponents. Therefore, entire proceedings conducted by Estate Officer is bad in law. Applicant/LIC has failed to prove that Opponent No.2 is unauthorized occupant and using the application premises unauthorizedly. He is only caretaker. In support his contention, he relied upon the order passed by the Hon'ble Bombay High Court in Bhupendar Singh Sethi and Anr. Vs. Life Insurance Corporation of India (Writ Petition No. 3463 of 2016 -- 19 of 32 -- 20 JMisc.Appeal No.133/2019 Decided on 28th March, 2016) wherein it is observed that petitioners claim through Respondent No.2 who was the original tenant of the premises and who has allegedly executed a leave and license agreement in favour of the petitioners. It is observed by the Hon'ble Bombay High Court that there are arguable issues for consideration and hence, petitioners would continue to occupy the premises in question on the terms and conditions mentioned by Principal Judge of City Civil Court by order dt. 26.8.2015 directing the petitioners to pay compensation at the rate of Rs.10,000/ per month. Learned Advocate for Opponent No.2 submitted that in view of said order, the application premises is also lying in the same area and therefore, order passed by the Hon'ble Bombay High Court is applicable in the present case also. 18 On the other hand, Learned Advocate Shri Kandekar for the applicant/LIC submitted that correspondence on record shows that applicant/LIC has issued several letters to legal heirs of Shri D.N.Mhatre to furnish the required information. Letters are not only issued to Sachin Mhatre but to father of Sachin i.e. K.D. Mhatre, but none of them has turned up and therefore, applicant/LIC was unaware about all the legal heirs. Therefore, no choice left with the applicant/LIC to issue the notice in the names of legal heirs of Shri D.N.Mhatre. Admittedly, notices issued to legal heirs of D.N.Mhatre are returned with endorsement “Left”. One room is in possession of legal heirs of Shri D.N.Mhatre. Therefore, applicant/LIC has pasted the termination notice on the conspicuous part of the application premises and therefore, legal heirs of Shri D.N.Mhatre are very well aware about the said notice. Show cause notice is also also pasted on the outer door of the application premises. It is further submitted that copy of notice is also served on Opponent No.2 and therefore, there is proper service of notice -- 20 of 32 -- 21 on the legal heirs of Opponent No.1 as well as Opponent No.2. In support of his contention he relied upon the decision in the case of Trustees of N.M.Petit Charity Fund & Ors.Vs. Heirs and Legal Representatives [2018 (5) Bom.C.R.137] wherein it is observed that suit for recovery of possession without naming LRs. of deceased tenant or any other defendant, suit without naming individual legal heirs and even without naming another defendant as unlawful occupant cannot be said to be not maintainable nor will it result in decree that is nullity. However, Court may insist for instance not only on pasting but on publication in newspapers in vicinity of tenanted premises. It is observed by the Hon'ble Bombay High Court that the issue at hand is that there are cases in the city where a landlord does not know the names or addresses or both of the heirs of a deceased tenant. None come forward when the tenant dies. What is the process that a landlord should follow to recover his property? Is it at all permissible for the landlord to bring a formal eviction action in the names of, for instance, the heirs and legal representatives, if any of the late tenant.? It is observed by the Hon'ble Bombay High Court that the petitioners as trustees were unaware of any heirs. The obituary in the newspapers disclosed no heirs or legal representatives against whom the petitioners could have proceeded to recover the premises. Thus, when the petitioners brought suit, they joined “the unknown heirs and legal representatives” of the deceased. It was their case that Jai Unwal was a licensee or gratuitous licensee. The suit itself was listed for a decision on the question of maintainability. The trial court held that a suit against unknown heirs was maintainable provided that also joined to the suit were another defendant or other defendants who were known and identified. In Para 16 it is observed by the Hon'ble Bombay High Court -- 21 of 32 -- 22 JMisc.Appeal No.133/2019 that there is no good reason why the provisions of Order XXII Rule4A cannot be used or invoked in situation like this or why we must have so rigid a line between a case where a defendanttenant dies after the suit but without leaving heirs and a case where a tenant is only a potential defendant who dies without heirs before the suit is brought. This is the reason why I have noted the historicity of this legislation and pointed out the restrictions that it imposes on the rights of a landlord and the consequences of following too slavishly some procedural norm that only operates to oust substantive legal rights of property ownership. These rights are valuable. They are not to be underestimated. It is further observed by the Hon'ble Bombay High Court by referring the judgment of V.B.Kapadia Vs. Nirmala, Civil Revision Application No.5423 of 1961, decided on 22nd January, 1962 wherein it is observed that a landlord sought to serve a notice in the name of the person who held the tenancy. The notice was refused and returned unserved. A few months later, the landlord filed an ejectment suit. He could not find the names of the legal representatives. He brought the suit in the name of unnamed legal representatives of the last recorded tenant. An application for pasting then followed, and this was granted. The suit resulted in exparte decree. It is further observed by the Hon'ble Bombay High Court that absolute principle that is invoked by citing Volvoikar is, therefore, incorrect and that judgment cannot be held to have correctly set out an absolute principle in law that a suit against unnamed or unknown legal heirs is not maintainable. The correct position in law on the contrary is that while ordinarily heirs must and ought to be named, there are circumstances in which they cannot be so named and such a suit is maintainable and may result in a valid decree even for possession. It is held that such a suit without naming individual legal heirs and even without naming another defendant as -- 22 of 32 -- 23 unlawful occupant cannot be said to be not maintainable nor will it result in decree that is nullity. 19 In the present case, the applicant/LIC has taken efforts to find out legal heirs of Shri D.N.Mhatre. Correspondence which is on record shows that Zonal Manager has received the application from one K.D.Mhatre informing that his father Dinesh N. Mhatre died on 15.10.1992. Thereafter several letters are issued to legal heirs of Shri D. N.Mhatre for furnishing relevant documents to transfer the tenancy in the names of legal heirs. Letters dt.20.12.1993, 31.5.1997, 28.3.2000 , 11.7.2001, 16.3.2002, show that time and again, details regarding legal heirs and relevant documents are called upon from legal heirs of Shri D. N.Mhatre but neither details are furnished nor the names of all legal heirs are furnished to the applicant/LIC and therefore, the applicant/LIC has issued the notice of termination in the name as 'Legal Heirs of D. N.Mhatre'. Admittedly, legal heirs of Shri D. N.Mhatre have not contested the application before the Estate Officer. As the part premises i.e. Room No.1 of the application premises is already in possession of legal heirs of Shri D. N.Mhatre, the Notice of Termination as well as show cause notice is not only sent by RPAD but it was also pasted on the conspicuous part of the application premises. Pasting report is filed on record by the applicant/LIC. So this is sufficient to show that Opponent No.1 i.e. legal heirs of Shri D. N.Mhatre are very well aware about the proceedings. Pasting Report shows that notices are served by pasting the same on the outer portion of the application premises. Not only the termination notice but show cause notice is also pasted in presence of two witnesses. Therefore, contention of Opponent No.2 that as notices are not properly served, the eviction application is bad in law, is not sustainable. -- 23 of 32 -- 24 JMisc.Appeal No.133/2019 20 It is further contention of Opponent No.2 that notice was not addressed to him whereas the contention of the applicant/LIC is that copy of notice is already served on Opponent No.2. Termination Notice shows that copy of notice is marked to Opponent No.2. For that purpose, Learned Advocate for the applicant/LIC relied upon the judgment in Burmah Shell Oil Distributing Vs. Khaja Midhat Noor (AIR 1988 Supreme Court 1470) wherein it is observed by the Hon'ble Supreme Court that termination of lease by one month's notice on lesssee alone is valid. Notice on sublessee is not necessary. It is held by the Hon'ble Apex Court that there was a valid notice of termination of lease to the lessee. In any event, the lessee did not dispute and accepted that there was a valid termination of the lease hold property. The lessee did not contest the suit but the sublessee contested the suit on the ground that the lease was not validly terminated. It is observed by the Hon'ble Apex Court that the termination of lease could only be by giving a valid notice. Such notice was given to the lessee but not to the sub lessee. The respondent's case is that a notice to sublessee was not necessary. The question is whether there was a valid notice. It is held that there was valid notice of termination of lease to the lessee, then there was no need to give a fresh notice to the sublessee. 21 In the present case also Opponent No.1 i.e.legal heirs of D.N.Mhatre have not contested the application but Opponent No.2 has contested the application on the ground that lease was not validly terminated. In the present case also lessee did not dispute about the termination of tenancy and not contested the eviction application. Additionally, in the present case also the copy of notice is served on Opponent No.2. Therefore, contention of Opponent No.2 that notice is not served and hence application is bad in law is not acceptable. -- 24 of 32 -- 25 22 Admittedly, in the present case also late Shri D.N.Mhatre is the original tenant and authorized occupant in respect of the premises on ground floor in Sita Chawl, i.e. Room No.1/2. It is also an admitted position that he accepted the terms and conditions of lease agreement that authorized occupant shall not assign, sublet or part with possession of the demised premises or any part thereof even where allowed by the law without the previous consent in writing of the Corporation i.e. LIC. He also agreed to pay rent regularly on the first day of every month and grace period of 10 days is given to him. None of the legal heirs have contested application and not denied that Shri D.N.Mhatre was not in arrears of rent. Statement of rent which is on record shows that Rs.7,49,261/ are arrears of rent against late Shri D.N.Mhatre. Though Opponent No.2 denied his possession over Room No.2 but the application filed by him before Regional Manager(Estate) dt. 5.1.2016 shows that he is in occupation of Room No.2 of the application premises which was given to Shri D.N.Mhatre. Opponent No.2 by this letter also requested to transfer tenancy in his name and he also filed the relevant documents i.e. PAN and electricity bill to the applicant/LIC. Subsequently, he came with the defence that he is only caretaker and therefore, during the visit of Building Inspector, he was seen by them in the application premsies. He further came with the case that one Sachin Mhatre is his friend and whenever said Sachin Mhatre is out of station, on behalf of Sachin Mhatre he takes care of the said application premises. Admittedly, Opponent No.2, has not examined Sachin Mhatre to show that he was deputed by said Sachin Mhatre to take care of the application premises. Except his bare statement nothing is on record to show that he was deputed in the application premises by Sachin Mhatre as a caretaker. -- 25 of 32 -- 26 JMisc.Appeal No.133/2019 23. On the other hand, said defence of Opponent No.2 is falsified by his application dt. 5.1.2016 addressed to the Regional Manager(Estate) as well as by the evidence of AW2 Building Inspectors Deepak Ajgaonkar and AW4 Sunil Nimje. The inspection reports which are prepared from time to time by visiting the application premises show that either the application premises is in locked condition or on 2 3 occasions Opponent No.2 was found in the application premises. Inspection reports further show that Room No.2 of the application premises is used as godown for storing the electronic materials. Admittedly, the business of Opponent no.2 is of electronic material. Though opponent No.2 claimed that Sachin Mhatre is dealing with import and export business of electronic material but there is no evidence to that effect. Opponent No.2 has admitted in his cross examination that he is running business of electronic material and he is a dealer. He also admitted that the name of the firm as 'Rhythm Electronics'. Thus, the admissions given by Opponent No.2 during his crossexamination, evidence of Building Inspectors AW2 Mr. Deepak Ajgaonkar and AW4 Mr. Sunil Nimje and the application filed by opponent No.2 before the Regional Manager(Estate) show that opponent No.2 is using Room No.2 of the application premises for storing electronic items. No further evidence is required to ascertain that it is opponent No.2 who is in possession of Room No.2 of the application premises. Admittedly, the application premises is given to Late Shri D.N.Mhatre on lease for the residential purpose and without any authority and without taking consent of the applicant/LIC, it was handed over to Opponent No.2 by legal heirs of late Shri D.N.Mhatre which is clear breach of terms and conditions of said lease agreement. There is no evidence on record to show that there was any consent by applicant/LIC to Opponent No.2 to use said Room No.2 of application -- 26 of 32 -- 27 premises as a godown. As there was no consent and it is occupied by Opponent no.2 without any authority, therefore, applicant/LIC decided to initiate action and accordingly, termination notice was issued. Therefore, I have no hesitation to hold that Opponent No.2 is unauthorized occupant in the application premises. 24. As I have already observed that legal heirs of Shri D.N.Mhatre have not contested the application and not denied that they are not in arrears of rent and therefore, termination notice was issued. Thus, the possession of legal heirs of Shri D. N.Mhatre in Room No.1 of the application premises is also unauthorized. The legal heirs of Shri D.N.Mhatre have contravened the terms and conditions of lease by allowing Opponent No.2 in the application premises. Therefore, termination notice was issued to them. After termination notice, legal heirs of Shri D.N.Mhatre also become unauthorized occupants. “Unauthorized Occupation” means use or actual occupation by any person of the public premises without authority. This cannot be equated with the term subletting or otherwise parting with the possession. The definition of 'unauthorized occupation' contained in The Public Premises Act would thus encompass use and actual possession of the part or whole of the public premises by person other than the lessee for his business or profession which is unconnected with the activities of lessee and for which purpose the premises were let out to the lessee. Therefore, I have no hesitation to hold that in the present case, applicant/LIC has proved that legal heirs of Shri D.N.Mhatre by contravening the terms and conditions of lease parted the possession of Room No.2 of the application premises with Opponent No.2 without any authority. Legal heirs of Shri D.N.Mhatre are also in arrears of rent and therefore, action taken against Opponent Nos.1 and 2 is legal and -- 27 of 32 -- 28 JMisc.Appeal No.133/2019 correct one. Hence, I answer Nos. 1 and 2 in the affirmative. AS TO POINT NO.3 25. Opponent No.2 has challenged the order of the Estate Officer regarding award of damages by the Estate Officer. Estate Officer has allowed the application and directed Opponent Nos.1 and 2 to pay Rs.6,31,781/ towards the damages within 15 days from the date of the application. Legal heirs of Opponent No.1 are also directed to deposit a sum of Rs.7,49,261/ being arrears of rent together with simple interest in respect of the application premises. 26. To ascertain the damages, the applicant/LIC has examined AW3 i.e. Valuer AW3 Shri R.C. Malhotra. If the evidence of AW3 Shri R.C. Malhotra and his valuation report is taken into consideration, he has ascertained the valuation of entire area. However, it is an admitted position that Opponent No.2 is only in possession of Room No.2, therefore, Opponent No.2 is only liable to pay the damages for the area which is in his possession ie. 450 sq.ft. Carpet (540 built up area) . However, the Estate Officer has not considered the same and directed to pay the amount of damages by holding total 840 sq.ft area in possession of Opponent No.2. 27. Admittedly, Opponent No.2 is in possession of 450 sq.ft. Carpet (540 built up area). Working on market rent as on 1.9.2015 as follows: Market value: Market value of the property having similar specification if constructed on date at the same location having built up area 840 sq.ft. @ Rs. 35,470/ per sq.ft. As on 1.9.2015 =840 X Rs.35,470 comes to -- 28 of 32 -- 29 Rs. 2,97,94,800/. If the area of which is in possession of opponent No.2 is considered, it is 540 sq.ft. Built up area and considering the above market value, it comes to Rs.1,91,53,800/ Cost of Construction: Cost of construction for an area 840 sq.ft. @ Rs.2322/ per sq.ft. =840 X 2322 which comes to Rs.19,50,480/. However, Opponent No.2 is in possession of 540 built up area so 540 X 2322= Rs.12,53,880/ Depreciation: Depreciation for age of building life of the building @ 30% on cost of construction i.e.19,50,480 X 30/100=5,85,144/. The valuer has ascertained the said amount by considering total 840 sq.ft. Built up area. However, the area which is in possession of Opponent No.2 is taken into consideration then calculation will be Rs.12,53,880 X 30/100= 3,76,164/. Replacement Value of premises: Replacement value of premises including proportional cost of land as on 1.9.2015 considering 840 sq.ft. Built up area is Rs.2,97,94,8005,85,144= Rs. 2,92,09,656/. Same ratio is applicable to Opponent No.2 and and therefore, it will come to Rs.1,91,53,8003,76,164= 1,87,77,636/ Net Returns: Net returns 8% of market value of the property as on date of valuation= Rs. 2,92,09,656 X 8/100 = 23,36,772/ Same ratio is applicable to Opponent No.2 and and therefore, it will come to Rs. 1,87,77,636 X 8/100= Rs.15,02,211/ -- 29 of 32 -- 30 JMisc.Appeal No.133/2019 Market Rent per month: Market Rent Per month=Rs.23,36,772 X 1/12= Rs. 1,94,731/ Market rent per month for the area in possession of Opponent No.2 comes to Rs.15,02,211 X 1/12=Rs. 1,25,184/. Thus, damages @ Rs.1,25,184/ per month from 1.9.2015 to 31.3.2019 (for 43 months) comes to Rs. 53,82,912/plus compound interest @9% p.a. 28. Thus, the Estate Officer has wrongly awarded the damages collectively against Opponent Nos.1 and 2. Opponent No.2 is only liable to pay damages considering his possession over 450 sq.ft. (540 built up) area. Whereas legal heirs of Opponent Nos.1 are liable to pay arrears of rent alongwith interest as well as damages to the extent of Room No.1 of the application premises which is in their possession. Therefore order of the Estate Officer is to be modified to the extent by observing that Opponent no.2 is only liable to pay to the extent of area which is in his possession. Therefore, finding of the Estate Officer that Opponent No.2 is liable to pay entire damages alongwith legal heirs of opponent No.1 i.e. Rs.98,38,188/ is wrong and illegal and liable to be set aside. As per order of the Estate Officer, opponent No.2/appellant is also liable to pay damages from 1.4.2019 till handing over the possession. Hence, I answer Point No.3 accordingly and proceed to pass following order: ORDER 1. Misc. Appeal No. 133 of 2019 is partly allowed. 2. Order dt. 29.3.2019 passed by the Estate Officer in Case No. 3 and 3A of 2016 regarding eviction of the application premises i.e. Room No.1/2, Ground Floor, Sita Chawl, New Badam Wadi, V.P.Road, Girgaum, Mumbai 400 004, against opponent No.1 The legal heirs of Late Shri D.N. Mhatre and opponent No.2/appellant Shri Anil Visaria is hereby maintained. -- 30 of 32 -- 31 3. Order passed by the Estate Officer dt.29.3.2019 directing opponent No.2/appellant to pay Rs.98,38,188/ is hereby set aside and modified to the extent that opponent No.2/appellant is liable to pay a sum of Rs.53,82,912/ towards damages with compound interest at the rate of 9 per cent per annum, considering the area which is in his possession i.e. 450 sq.ft.carpet area (Built Up 540 sq.ft.). Opponent No.2/appellant is liable to pay damages @ Rs.1,25,184/per month from 1.4.2019 till handing over possession to the applicant/Respondent No.1 LIC. Opponent No.1 is liable to pay remaining amount towards damages with compound interest at the rate of 9 per cent per annum. 4. R and P be sent back to the applicant/LIC. Date: 23.2.2022 (Urmila S. Joshi Phalke) Principal Judge, City Civil Court, Gr.Bombay. Dictated on : 23.2.2022 Transcribed on : 28.2.2022 Signed on : 28.2.2022 -- 31 of 32 -- 32 JMisc.Appeal No.133/2019 CERTIFIED TO BE TRUE AND CORRECT COPY OF THE ORIGINAL SIGNED JUDGMENT/ORDER Name of Stenographers: B.S.Parab Upload date and time: 2.3.2022 (At 5.54 pm) Name of the Judge H.H.THE PRINCIPAL JUDGE SMT.URMILA S.JOSHIPHALKE (C.R.No.19) Date of Pronouncement of Order 23.2.2022 Order signed by P.O. on 28.2.2022 Order uploaded on 2.3.2022 Reuploaded on 6.5.2022 -- 32 of 32 --
