New India Assurance Company Ltd vs Nusli Neville Wadia And Another

JUDGMENT (Arising out of SLP (C) No. 8232 OF 2006) WITH CIVIL APPEAL NO. 5871 OF 2007 (Arising out of SLP (C) No. 10348 OF 2006) New India Assurance Company Ltd. Appellant Versus KLM Engineering Co. Pvt. Ltd. and others Respondents S.B. SINHA, J.

3. Appellant is a company incorporated under the Companies Act, 1950. It is a State within the meaning of Article 12 of the Constitution of India. It owns a building in the town of Mumbai commonly known as Mayfair Gardens. Respondents herein are the tenants occupying two apartments in the said building. We would notice the fact of each matter in brief separately.

4. In this appeal a notice terminating the tenancy of first respondent was issued on 9th February, 2001. However, on the premise that no ground of eviction had been mentioned therein, another notice was issued on 18th February, 2002 enumerating the grounds of eviction. Replies were given thereto by the respondent. Appellant filed an application before the Estate Officer praying for eviction of the respondent and for damages for unauthorized occupation of the premises with effect from 1st April, 2002 @ Rs.4,91,700/- per month with interest @ 9 % per annum thereupon.

5. The Estate Officer purported to be satisfied that the occupation of the first respondent is unauthorized and that an order of eviction may have been passed against it issued a show cause notice to respondent No.1 on 28th July, 2003 under Section 4 of the Act. The grounds for first respondents eviction as set out in the application were :-

examination by the first respondent whereafter he would file his affidavit of evidence. The said application was rejected by the Estate Officer by an order dated 12th January, 2006. Aggrieved by and dissatisfied therewith the first respondent filed a writ petition before the Bombay High Court which, by reason of the impugned judgment, has been allowed.

8. Respondent No.1 was inducted as a licensee in a furnished flat in an apartment in the said building. The period of lease was for 5 years beginning from 1st October, 1994. Allegedly on the premise that the respondent No.1 did not renew the licence by giving two months prior notice as required, a notice to quit and handover possession was issued on 13th December, 1999. In response to the said notice the respondents contended that they had exercised their option to renew the licence vide their letter dated 9th December, 1999. Thereafter by a notice dated 9th February, 2001 the tenancy of respondent No.1 was terminated by the appellant. As the said notice did not contain any ground for termination of tenancy, another notice was issued on 18th February, 2002. Composite application was filed by the appellant under Sections 4 and 7 of the Act before the Estate Officer on 16th January, 2003 whereupon two show cause notices were issued by the Estate Officer to the first respondents in terms of Section 4 and 7(3) of the Act on 21st February, 2003.

10. Aggrieved by and dissatisfied therewith, the Respondent Nos. 1 and 2 filed a writ petition before the High Court being W.P. No. 557 of 2006 which has been allowed by reason of the impugned order.

33. The Estate Officer with a view to determine the lis between the parties must record summary of the evidence. Summary of the evidence and the documents shall also form part of the record of the proceedings.

Natural Justice Issue:

However, once the Tribunal satisfied itself about the existence of grounds, the burden of proof would be upon the proceedee. Interpretative Approval

58. We, therefore, direct that both the parties must file their documents within a week from today and the Estate Officer must give both the parties inspection of the said documents within a week thereafter. In the appeal arising out of SLP (C) No. 10348 of 2006 the appellant must file the affidavits of its witnesses within two weeks and thus shall be produced for cross-examination within one week thereafter. In appeal arising out of SLP (C) No. 8232 of 2006 the witnesses must be produced for cross-examination as expeditiously as possible, but not beyond a period two weeks.

59. The proceedings before the Estate Officer, being summary in nature, the cases must go on a day to day basis. The Estate Officer is directed to pass a final order, as expeditiously as possible but not beyond a period of 10 weeks from the date of receipt of a copy of this order.

60. These appeals are dismissed with the aforesaid direction with costs. Counsel fee in each case is assessed at Rs.25,000/- (Rupees twenty five thousand only).