Full Order Text
Final Order 1 · 22 Jan 2026 · CNR MHSCA30002582025
Order Details: Copy of Judgment Pdf Text: CNR No. MHSCA3-00-0258-2025 Presented on : 17.02.2025. Registered on : 17.03.2025. Decided on : 22.01.2026. Duration : Yrs. Mths. Days 0 11 5 IN THE COURT OF SMALL CAUSES, AT MUMBAI (APPELLATE BENCH) (BANDRA BRANCH) A1 APPEAL NO. 18 of 2025 IN R.A.E. SUIT NO. 90 OF 2017 1. Mrs Malti Mukund Madhekar of Pune (Deleted) 2. Mr. Nandakishore Mukund Madhekar of Pune aged 66 years, Occupation : Business Indian Inhabitant. 3. Mr. Vinayak Mukund Madhekar of Pune aged 60 years, Occupation : Business Indian Inhabitant. 4. Mr. Sanjay Mukund Madhekar of Pune (Deleted), aged 50 years, Occupation : Housewife Indian Inhabitant. All residing at 3, Saikunj, 11, Rambaug Colony Paud Road, Pune – 411 038. 4.1) Mrs Aparna Sanjay Madhekar aged 57 years Occ.- Housewife Widow of Late Sanjay M. Madhekar 4.2) Miss. Manasai Sanjay Madhekar aged 23 years Occ.- Student Only child of Late Mr. Sanjay Madhekar Both residing at 3, Saikunj, 11, Rambaug Colony Paud Road, Pune – 411 038. 5. Mrs Anjali Anand Junnarkar of Pune aged 62 years, Occ.- Housewife, Indian Inhabitant residing at 2, Lalat, Swarangari, Sinhgad Road, Pune 411051 …. Appellants (Orig. plaintiffs) -- 1 of 16 -- ::2:: A-1 Appeal No. 18 of 2025 Judgment… Versus 1. Mrs. Vimala Padmakar Jape of Mumbai aged about 76 years Occupation : Business, Indian Inhabitant 2. Mr. Jayant Padmakar Jape of Mumbai aged about 45 years Occupation : Service Indian Inhabitant 3. Mr. Sandeep Padmakar Jape of Mumbai aged about 43 years Occupation : Service Indian Inhabitant All residing at A-23-a Kalpataru Sparkle, MIG Co-op. Hsg. Society, Group II, Nana Dharmadhikar Road, Gandhi Nagar, Bandra (East), Mumbai 400 051. …. Respondents (Original defendants) Adv. Ms. Pranjali Bhandari I/By Johnson John, for appellants. Adv. Mrs. Devika Purav, for respondents. Coram : Shri Ashish A. Ayachit, Addl. Chief Judge & Shri D.R. Mali, Judge. C.R. No. 41 (B.B.) Date : 22nd Day of January, 2026 JUDGMENT : (Per Ashish A. Ayachit, Addl. Chief Judge) This Appeal is filed under Section 34 of the Maharashtra Rent Control Act (hereinafter referred to as “the M.R.C. Act”). 2. The original plaintiffs, being aggrieved and dissatisfied with the judgment and decree passed in R.A.E. Suit No. 90 of 2017 dated 13.01.2025, decided by the Court of Small Causes at Mumbai, Bandra Branch, (Court Room No. 35), thereby dismissing the suit for eviction -- 2 of 16 -- ::3:: A-1 Appeal No. 18 of 2025 Judgment… and possession and recovery arrears of rent filed under Section 15, 16 (1)(c) (g) of M.R.C. Act, have preferred the present appeal. 3. The parties have been referred to by their original nomenclature as before the learned trial court. The appellants before us are the original plaintiffs, and the respondents are the original defendants. 4. The plaintiffs have filed the present suit for eviction and possession of Flat No. A-23(a), ad-measuring 505 sq. ft. carpet area, in possession of the defendants, more particularly described in paragraph 8 of the plaint (hereinafter referred to as “the suit premises”). The plaintiffs have filed the suit for eviction on the following three grounds: (a) Defendant failed to pay regular rent and committed default and was in arrears of rent, and therefore, notice under Section 15 of the M.R.C. Act dated 16.07.2016 was served upon the defendants calling upon them to pay the rent for 124 months from August 2006 till date. The defendants failed to pay the rent and committed willful default. (b) The plaintiffs are in need of the suit premises for their bona fide and reasonably requirement of family members and, therefore, seek eviction under Section 16(1)(g) of the M.R.C. Act. (c) The defendants are causing continuous nuisance and annoyance to the plaintiffs and the society under Section 16(1)(c) of M.R.C.Act. 5. The defendants appeared and raised several defences, inter-alia, that the suit is barred by the principle of res judicata. Suit is misconceived, mala fide, and filed to harass and dispossess them. The -- 3 of 16 -- ::4:: A-1 Appeal No. 18 of 2025 Judgment… defendants further asserted that Late Mr. Padmakar Jape resided in and financially contributed to the suit premises since 1969 but was denied his rightful claims due to the society’s actions. It is stated that the plaintiffs neither contributed to nor proved ownership or bona fide requirement. They further stated that in view of redevelopment and Hon’ble High Court orders recognized separate entitlements. They cooperated and vacated the premises in 2011. There is no rent agreement, and that rent was deposited in Court only under orders. 6. Upon the pleadings, the learned trial court framed several issues at Exhibit 16. However, the learned trial court decided the suit only on one issue, namely, that the suit is barred by the principle of res judicata. The learned trial court recorded findings on that issue in the affirmative and held that all other issues do not survive. Thus, there is no appreciation of evidence on the issues framed during the trial. 7. We have heard the learned advocate Smt. Pranjali Bhandari, instructed by Advocate Johnson John, for the plaintiffs, and the learned advocate Mrs. Devika Purav for the defendants. The learned advocate for the defendants also placed on record written notes of arguments (Exh. 14). 8. Advocate Pranjali Bhandari for the plaintiffs briefly submitted that the learned trial court erred in dismissing the suit solely on the ground of the principle of res judicata. She submitted that the learned trial court neither recorded findings on the issues framed nor appreciated the evidence placed on record, which is mandatory under Order XIV of the Code of Civil Procedure, 1908 (hereinafter referred to -- 4 of 16 -- ::5:: A-1 Appeal No. 18 of 2025 Judgment… as “the C.P.C.”). She further submitted that the learned trial court misinterpreted and misconceived the undisputed facts relating to earlier litigation between the parties. 9. Mrs. Pranjali Bhandari, learned advocate for the plaintiffs canvassed the brief history of litigation between the parties. She invited our attention to the impugned judgment wherein the learned trial court considered the earlier litigation but failed to appreciate and apply the proper legal provisions and principles. According to her, there is a recurring cause of action, and merely because the earlier suit has been decided and a Civil Revision Application is sub judice before the Hon’ble High Court, the subsequent suit for recovery of possession on the grounds of bona fide requirement, nuisance, and default in payment of rent is not barred, as these are recurring causes of action available to the landlord. She relied upon the judgment of the Hon’ble Delhi High Court in Rajinder Parshad Jain vs. Bal Gopal Das, 1998 VII AD (Delhi) 589. She submitted that the recurring cause of action assumes significance in landlord-tenant disputes and, therefore, the learned trial court committed a serious error of law by deciding the suit without adjudicating the other issues. She accordingly prayed for remand of the matter for fresh consideration and trial in accordance with law. 10. The learned advocate Ms. Devika Purav for the defendants, on the other hand, supported the impugned judgment and submitted that the earlier suit bearing R.A.E. & R. Suit No. 852/2667 of 1981 was decreed and that the decree was set aside in appeal. The Civil Revision Application is still sub judice before the Hon’ble High Court. The plaintiffs failed to pursue the earlier proceeding before the Hon’ble High -- 5 of 16 -- ::6:: A-1 Appeal No. 18 of 2025 Judgment… Court and instead filed a separate suit, and therefore, the present suit was rightly dismissed by applying the principle of res judicata. She, therefore, prayed for dismissal of the appeal with costs. POINTS FOR DETERMINATION 11. Upon considering the arguments of learned advocate for the plaintiffs and written submissions of the learned advocate for the defendant, the following points arise for our determination, and we have recorded our findings for the reasons given below: Sr. No. POINTS FINDINGS 1. Whether the learned trial court was justified in deciding the suit only on the issue of res-judicata ? No. 2. Whether the learned trial court required to decide all the issues settled and framed during the trial ? Yes. 3. Whether the impugned judgment and decree legal, proper and correct ? No. 4. Whether interference is called for in the impugned judgment and decree in the appeal ? Yes. 5. What order and decree ? Appeal is allowed as per final order. REASONS AS TO POINTS NOS. 1 AND 2 :- 12. At the outset, we would like to note that the Hon'ble Delhi High Court in the case of Rajinder Parshad Jain vs. Bal Gopal Das, -- 6 of 16 -- ::7:: A-1 Appeal No. 18 of 2025 Judgment… 1998VIIAD (Delhi) 589 observed as under : “16. The general principles of res-judicata are based firstly on public policy and secondly on private justice. The plea of res-judicata is not one of jurisdiction of the court. It is a rule of convenience. Nobody shall be vexed twice on the same issue. The rule of res-judicata cannot be so applied as to make it an oppressive instrument guided towards defeating the public policy itself. 17. So also the question of recurring cause of action assumes significance in the context of the doctrine of res-judicata, more so when it is sought to be applied to the suits for eviction from premises based on landlord - tenant relationship. In Surajmal vs. Radhey Shyam, a suit for eviction from premises comprising of shop on ground of bona fide need was dismissed. The second suit on the same ground was held to be competent. Their Lordships held that the bona fide need must be considered with reference to the time when a suit for eviction is filed and it cannot be assumed that once the question of necessity is decided against the landlord, it has to be assumed that he will not have a bona fide and genuine necessity forever in future.” 13. Keeping the in mind aforesaid legal observations, Section 11 read with Order 14 Rule 2, and Order 41 rule 23 of CPC, we have perused the record. It revealed that that in the case the learned trial court has framed following issues (Exh. 16) on 17.09.2018. ISSUES 1. Whether the plaintiffs prove that, the husband of plaintiff No. 1 and the father of the plaintiff No. 2 to 5 was the owner of the suit premises ? -- 7 of 16 -- ::8:: A-1 Appeal No. 18 of 2025 Judgment… 2. Whether the plaintiffs prove that, the original owner of the suit premises has given it to its maternal relative Mr. Padmakar Jape for residential use on sympathetic grounds on rent @ Rs. 170.32 p.m. ? 3. Whether the plaintiffs prove that, defendants have failed and neglected to pay the rent of the suit premises since June 2015 ? 4. Whether the plaintiffs prove that, they have issued legal notice to the defendants calling upon them to pay the arrears of rent amount ? 5. Whether the plaintiffs prove that, they require the suit premises reasonably and bona fide for their use and occupation ? 6. To whom greater hardship will be caused by passing the decree than refuse to pass it ? 7. Whether the plaintiffs prove that, the defendant is doing the business of estate agent and giving tuitions from the suit premises ? 8. Whether the plaintiffs prove that, defendants continuously causing annoyance and nuisance to them ? 9. Whether the plaintiffs are entitled for possession of the suit premises as prayed ? 10. Whether the plaintiffs are entitled for mesne profits ? 11. What order and decree ? 14. It revealed from para 4 of the impugned judgment that the learned trial court has deleted issue Nos. 1,2 and 7 from the aforesaid issues and framed additional issue of res-judicata on 26.09.2024. It revealed that the parties have already argued the matter on merit. Written Notes of arguments were filed on record. However, the learned Trial Court deemed it proper to delete issues No. 1,2, and 7 and add issue of res judicata. Thereafter, the parties have not adduced any -- 8 of 16 -- ::9:: A-1 Appeal No. 18 of 2025 Judgment… evidence and matter has been heard again and decided by impugned judgment. The issues and findings thereon, which are mentioned in the judgment are reproduced as under : Sr. No. ISSUES FINDINGS 1. Whether the suit is barred by the principle of Res-Judicata? Yes. 2. Whether the plaintiffs prove that, defendants have failed and neglected to pay the rent of the suit premises since June, 2015 ? Does not survive. 3. Whether the plaintiffs prove that, they have issued legal notice to the defendants calling upon them to pay the arrears of rent amount? Does not survive. 4. Whether the plaintiffs prove that, they require the suit premises reasonably and bonafide for their use and occupation? Does not survive. 5. To whom greater hardship will be caused by passing the decree than refuse to pass it ? Does not survive. 6. Whether the plaintiffs prove that, defendants continuously causing annoyance and nuisance to them ? Does not survive. 7. Whether the plaintiffs are entitled for possession of the suit premises as prayed ? Does not survive. 8. Whether the plaintiffs are entitled for mesne profits ? No. 9. What order and decree ? The suit stands dismissed with costs. 15. Order XLI Rule 27 of the CPC empowers the Appellate Court to remand the matter when the suit has been decided on a -- 9 of 16 -- ::10:: A-1 Appeal No. 18 of 2025 Judgment… preliminary point. In view of Order XIV Rule 2 of the CPC, the Court is required to decide all the issues and record its findings thereon. 16. In the present case, we have already discussed the issues which were originally framed and subsequently recast in the judgment by the learned trial court along with its findings. The learned trial court has deleted Issue Nos. 1, 2 and 7, which, though not happily worded or properly constructed, clearly indicated that the relationship of landlord and tenant was in dispute and required adjudication and proof by the parties. The defendants, in their written statement, have denied the ownership rights of the plaintiffs as well as the existence of any tenancy agreement between the parties. Therefore, these issue of relationship of landlord and tenants assume significance and were necessary to be adjudicated by the Court of Small Causes only. 17. It is necessary to clarify that in Mumbai, the Court of Small Causes, established under the Presidency Small Causes Court Act, has exclusive jurisdiction to adjudicate, deal with, and try disputes between landlord and tenant or licensor and licensee, lessor and lessee, and matters incidental and connected thereto. In the present suit, the chequered history of litigation between the plaintiffs and defendants is not in dispute. On the contrary, the plaintiffs themselves have pleaded the earlier litigation in the plaint. It is not is dispute that Civil Revision Application is pending before the Hon’ble High Court. Therefore, the approach of the learned trial court in dismissing the suit by applying the principle of res judicata is incorrect and improper. We may note that in paragraph 31 of the impugned judgment, which is reproduced herein for ready reference, the learned trial court observed as under: -- 10 of 16 -- ::11:: A-1 Appeal No. 18 of 2025 Judgment… “In my view, considering all the evidence brought on record and the orders passed from time to time by the Hon’ble High Court which are produced on record, the plaintiffs cannot bring a fresh suit in respect of Flat No. A-23(a) which was handed over to the defendants vide order dated 18/07/2011 in lieu of the original Flat No. 180, despite the pendency of Civil Revision Application filed by the plaintiffs, in respect of which no right is created in favour of the plaintiffs, as made clear in the order. All the issues in respect of Flat No. 180 are already decided by the competent court between the same parties and/or their legal heirs litigating under the same title in appeal proceedings. Both the parties have the same legal interest in the subject matter. Considering the law laid down in Section 11 of the Code, the principle of res judicata is clearly applicable to the facts and circumstances of the present case. Therefore, I do not find any force in the submissions made on behalf of the learned Advocate for the plaintiffs. On the contrary, I find substance in the arguments advanced by the learned Advocate for the defendants that the suit is barred by the principle of res judicata. Hence, I answer Issue No. 1 in the affirmative.” 18. The learned trial court held that the arguments advanced by the defendants had substance and, therefore, applied the principle of res judicata. However, without expressing any opinion on the merits of those observations and by keeping the issue of res judicata open, it is necessary to clarify that for the application of the doctrine of res judicata, the following legal requirements must be satisfied: (i) The former suit and the subsequent suit must be between the same parties or parties litigating under the same title. -- 11 of 16 -- ::12:: A-1 Appeal No. 18 of 2025 Judgment… (ii) The issues in the former and subsequent suits must be directly and substantially the same and must arise from the same cause of action; the bar cannot arise from mere incidental or collateral findings. (iii) The former suit must have been heard and finally decided by a court of competent jurisdiction. 19. In the present suit, it is an admitted position that the predecessor of the plaintiffs had filed R.A.E. & R. Suit No. 852/2667 of 1981 against the predecessor of the defendants for eviction under the provision of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947. The said suit was decreed, against which an appeal and cross-objection were preferred before this Court vide Appeal No. 300 of 2006 and Cross-Objection No. 10 of 2006. The Appellate Court allowed the appeal and dismissed the cross-objection, thereby setting aside the judgment and decree of eviction. Against the said judgment, Writ Petition No. 304 of 2008 (as submitted by the learned advocates for the parties, now converted into a Civil Revision Application) is pending adjudication before the Hon’ble High Court. 20. It is also a matter of record that during the pendency of the said proceedings, the developer filed Suit No. 876 of 2011, wherein by an order dated 18.07.2011 passed in Notice of Motion No. 1191 of 2011, the Hon’ble High Court directed the predecessor of the defendants to hand over possession of the premises to the developer. Thereafter, the developer constructed a new building and possession was restored to the defendants. The present suit has been instituted by the plaintiffs for recovery of arrears of rent for the subsequent period and for eviction on the grounds of bona fide and reasonable requirement as well as nuisance. -- 12 of 16 -- ::13:: A-1 Appeal No. 18 of 2025 Judgment… 21. It is necessary to bear in mind that the suit premises involved in the earlier suit have since been demolished and a new flat has been constructed in its place, which has been handed over to the defendants pursuant to the directions issued by the Hon’ble High Court. The defendants have thereafter disputed the ownership rights of the plaintiffs and have categorically denied the existence of any relationship of landlord and tenant between the parties. These are pure questions of fact which go to the root of the matter and, therefore, require proper adjudication, appreciation of evidence, and recording of specific findings by the learned Trial Court. 22. It is equally necessary to keep these aspects in mind while examining the applicability of the doctrine of res judicata. The change in the nature and identity of the suit premises, coupled with the subsequent conduct and pleadings of the parties, particularly the denial of ownership and tenancy, gives rise to fresh and recurring causes of action. Under the Maharashtra Rent Control Act, 1999, a subsequent suit based on a recurring or continuing cause of action, such as non- payment of rent, denial of title, bona fide requirement, or nuisance is legally maintainable, notwithstanding earlier proceedings between the same parties. 23. Therefore, the issue of res judicata cannot be applied mechanically or in isolation without examining whether the cause of action, the subject matter, and the issues directly and substantially in controversy in the subsequent suit are identical to those finally decided in the earlier proceedings. These questions necessarily require a full- fledged trial and adjudication on merits by the learned Trial Court. -- 13 of 16 -- ::14:: A-1 Appeal No. 18 of 2025 Judgment… 24. Therefore, the learned trial court has committed a serious error of law in deciding the suit solely on the issue of applicability of the principle of res judicata. It was obligatory upon the learned trial court to appreciate the entire evidence on record and to record findings on all issues, including the issue of res judicata. Accordingly, we answer Point No. 1 in the negative and point No. 2 in the affirmative. AS TO POINTS NOS. 3 AND 4: 25. In view of the aforesaid findings, the judgment of the learned trial court is not only illegal but also perverse. The learned trial court ought not to have deleted the issues and framed the issue of res judicata without affording due opportunity to the parties. It is equally erroneous, in the facts and circumstances of the present case, to decide the entire suit solely on the issue of res judicata and to leave the other relevant issues undecided by recording that they do not survive, without recording any findings thereon. 26. Be that as it may, since this Court is adjudicating the appeal as the final fact-finding Court, it would not be appropriate to appreciate the evidence and record findings for the first time, as doing so would deprive the parties of one of their statutory remedies. Therefore, in view of Order XLI Rule 23 of the CPC, the suit is required to be remanded to the learned trial court for fresh adjudication in accordance with the observations made herein. Hence, interference with the impugned judgment and decree is necessary and warranted. Accordingly, we answer Point Nos. 3 and 4. -- 14 of 16 -- ::15:: A-1 Appeal No. 18 of 2025 Judgment… AS TO POINT NO. 5: 27. In view of the aforesaid findings, the appeal succeeds. As regards costs, the parties are directed to bear their own costs in this appeal, as the matter is being remanded for a fresh trial. Accordingly, we answer Point No. 5 and pass the following order: ORDER 1. The appeal is allowed. 2. The impugned judgment and decree passed by the learned trial court in R.A.E. Suit No. 90 of 2017 dated 13.01.2025, Court Room No. 35 (Bandra Branch), are hereby quashed and set aside. 3. The suit is restored and remanded to the Court of Small Causes, Court Room No. 35, Bandra Branch, for fresh hearing and decision in accordance with law. 4. The suit shall be restored to its original number and the parties shall be afforded an opportunity to adduce evidence, if any, on the issue of res judicata and all other issues, which shall be decided afresh. 5. The learned trial court shall be at liberty to recast the issues, if necessary, in view of the pleadings and defences raised by the parties. 6. The parties are directed to remain present before the learned trial court on 31.01.2026. 7. A decree in this appeal be drawn accordingly 8. The parties shall bear their own costs of this appeal. -- 15 of 16 -- ::16:: A-1 Appeal No. 18 of 2025 Judgment… 9. The Record and Proceedings be returned and the judgment be communicated to the learned trial court forthwith. I Agree, (Dipak R. Mali) (Ashish A. Ayachit) Judge Addl. Chief Judge, C.R. No. 41 C.R. No. 41 Court of Small Causes,(B.B) Court of Small Causes,(B.B) 22.01.2026 22.01.2026 Judgment dictated on : 22.01.2026 Judgment transcribed on : 22.01.2026 Judgment checked & signed on: 22.01.2026 /home/steno31/Desktop/CR-31/AA Ayachit-2025/Judgments since June 2025/JAN 2026/Appeal (A1)18-25.odtsgz/ -- 16 of 16 --
