Smt. Krishna Rajpal Bhatia & Ors Vs. Miss Leela
H. Advani & Ors [1988] INSC 288 (19 September 1988)
Sen,
A.P. (J) Sen, A.P. (J) Ray, B.C. (J)
CITATION:
1989 AIR 122 1988 SCR Supl. (3) 60 1989 SCC (1) 52 1988 SCALE (2)1276
CITATOR
INFO : D 1990 SC1563 (14,15)
ACT:
Maharashtra
Cooperative Societies Acg 1960-Section 91 Challenging order of eviction from
premises in dispute, under section 91--On the grounds that the agreement
between the parties was one of lease and not licence.
HEAD NOTE:
By an
agreement dated 1st
January, 1964, the
disputant, a tenant Co-partner member of a Cooperative Housing Society,
permitted appellants' father the user of her flat. On a joint application by
both the parties, the Society granted permission for his occupying the flat on
terms of leave and licence. The disputant later made a claim under s. 91 of the
Maharashtra Cooperative Societies Act, 1960 (`the Act') before the District
Deputy Registrar for his eviction. The claim for eviction was resisted by him
on the ground that the transaction between the parties was one of lease and the
Registrar had no jurisdiction to enter upon the reference under section 91. It
was held that the parties stood in the jural relationship of landlord and
tenant and the dispute did not touch upon business of the Society within the
meaning of s. 91. Aggrieved, the disputant carried an appeal to the Maharashtra
State Cooperative Appellate Tribunal. The Tribunal remanded the case for a
fresh decision on the question whether the disputant was a tenant co-partner
member or a tenant owner member, as the society was held to be a mixed type of
society of both tenant co-partner members and tenant owner members. On remand,
the Judge. first Cooperative
Court recorded a
finding that the Society was a tenant Co-partnership type of society and the
disputant was only a tenant Co-partner member. Thereafter the dispute came up
for adjudication before the said Judge. The Judge rendered an award holding
that after the termination of the licence the possession of appellants' father
was wrongful, and directing him to vacate and hand over possession of the flat.
He went in appeal before the Maharashtra State Co- operative Appellate Tribunal
but without avail.
Dismissing
the appeal, the Court,
HELD:
The agreement between the parties was embodied in PG NO 60 PG NO 61 usual
standard form of an agreement for leave and licence.
The
parties to the agreement were bound by the terms thereof. There was nothing to
suggest that the agreement for leave and licence was merely a device to
camouflage the real nature of the transaction, viz., creation of a tenancy,
which would clearly be against the bye-laws of the society.
The
disputant, the licensor, was only a tenant co-partner member and all hat she
could do under the terms of the bye- laws was to create a licence with the
permission of the society by making the licensee to be a nominal member
thereof. The matter is directly covered by the decision of this Court in O.P. Bhatnagar
v. Smt. Rukibai Narsindas, [1982] 3 SCR 681. [67C-E] The Society was purely a
tenant co-partnership type of housing society consisting only of tenant
co-partner members and there were no tenant owner members in the society. In
view of the subsequent change brought about by the amendment of the bye-laws,
there was no question of the disputant being regarded as a tenant owner member.
The Appellate Court and the Judge of the First Cooperative Court rightly held
her o be a tenant Co-partner member. The appellant's father having been
inducted into the premises under the terms of the agreement for leave and licence
could not say that the disputant was a tenant owner member and not a tenant co-
partner member or that the transaction was one of ease and not licence. [68G; 69D-E]
Sabharwal Brothers v. Smt. Guna Amrit Thandani, [1973] I SCR 53 and Ramesh Himmatlal
Shah v. Harsukh Jadavji Joshi, [1975] Suppl. SCR 270, distinguished.
O.P. Bhatnagar
v. Smt. Rukibai Narsindas, [1982] 3 SCR 681; Dr. Manohar Ramchandra .Sarlare v.
The Konkan Co- operative Housing Society Ltd. & Ors., AIR 1962 Bom. 154,
I.R.; Hingorani v. Pravinchandra, (1966-67) Bom. LR 306; Contessa Knit Wear v. Udyog
Mandir Cooperative Housing Society, AIR (1980) Bom. 374 and Bandra Green Park
Co- operative Housing Society Ltd. & Anr. v. Mrs. Dayadasi Kalia &
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1945 of 1984.
From
the Judgment and Order dated 16.12.1983 of the Bombay High Court in W.P No 4356
of 1983.
R. Karanjawala.
Mrs. Manik Karanjawala and Ejaz Maqbool for the Appellants.
PG NO
62 T.S. Krishnamurthy, R.N. Keshwani, Dilip Jhangiani, V.K. Punwani and M.K.D. Namboodiri
for the Respondents.
The
Judgment of the Court was delivered by SEN, J. This appeal by special leave is
directed against the judgment and order of the High Court of Bombay dated 16th December 1983 declining to interfere with the
judgment and order of the Maharashtra State Cooperative Appellate Court, Bombay dated 31st October, 1983. By the impugned judgment the Appellate Court up-held the
judgment and order passed by the Judge, First Cooperative Court, Bombay dated
28th August, 1981 directing the appellants to vacate and hand over possession
of Flat No. 16 on First Floor of Block No. 8 in the housing colony known as Shyam
Niwas, situate at Warden Road, now called Bhulabhai Desai Road, Bombay and to
pay mesne profits @ Rs.450 per month and a further amount of Rs.42.50 towards
maintenance, car parking and water charges w.e.f. Ist August 1981.
The
facts of the case are as follows. By an agreement in writing dated 1st January 1964, the disputant the late Smt. Devibai
H. Advani, who was a tenant co-partner member, permitted the appellants' father
Rajpal Bhatia, user of her Flat No. 16 for a period of 11 months as from that
date on the terms and conditions stated in the said agreement. Both the parties
made a joint application for admission of the said Rajpal Bhatia as a nominal
member of the society and the society granted the requisite permission for his
occupying the flat in dispute on terms of leave and licence.
At the
request of Rajpal Bhatia, the said agreement for leave and licence was renewed
for 11 months each by further agreements and thereafter the period was further
extended 11 months by an endorsement. The late Smt. Devibai Advani by her
lawyer's notice dated 21st
May 1969 terminated
the agreement for leave and licence. On 30th June 1969 she made a claim under
s. 91 of the Maharashtra Cooperative Societies Act, 196() (for short the Act')
before the District Deputy Registrar for the eviction of the said Rajpal Bhatia
alleging him to be in unauthorised occupation of her flat.
The
claim as laid by her was that she was a 'tenant member' of the society and that
Rajpal Bhatia was in unauthorised occupation. Her claim for eviction was
however register by Rajpal Bhatia inter alia on the ground that the transaction
between the parties was one of lease and not of licence and therefore the
Registrar had no jurisdiction to enter upon the reference under s. 91 of the
Act inasmuch as his jurisdiction to enter upon such claim was barred under s.
28 of the Bombay Rents, Hotel & Lodging House Rates Control Act, 1947
(Bombay Rent Act for short). That objection of his PG NO 63 was sustained by
the Officer on Special Duty by his judgment and award dated 16th November 1972. The learned Officer on Special
Duty held that the parties stood in the jural relationship of landlord and
tenant and further that the dispute in question did not touch upon the business
of the society within the meaning of s. 9 1 of the Act.
Aggrieved,
the disputant the late Smt. Devibai Advani carried an appeal to the Maharashtra
State Cooperative Appellate Tribunal. The Tribunal by its judgment and order
dated 8th February 1974 allowed the appeal and remanded the
case for a decision afresh on the question whether the disputant the late Smt. Devibai
Advani was a tenant co- partner member or a tenant owner member. It is however
necessary to mention that the Tribunal held that the society was a mixed type
of society having both tenant co-partner members and tenant owner members but
since the disputant described herself as a tenant member, and particularly
having regard to the fact that Rajpal Bhatia get himself admitted as a nominal
member queried: If she was an owner member where was the necessity of taking
permission of the society for letting the flat? Nor was there any necessity for
Rajpal Bhatia to seek admission as a nominal member which made him subject to
the bye-laws of the society.
According
to the Tribunal, these circumstances were more in consonance with the status of
the disputant being a tenant member. It went on to say that there was no
evidence led to establish that the flat in question was sold to the disputant
and accordingly remitted the aforesaid issue for a decision afresh. During the
tendency of the appeal, the late Smt. Devibai Advani made an application
praying that the society be transposed as disputant no. 2. Despite the
opposition of Rajpal Bhatia. the application for transposition was ultimately
allowed.
Initially
when the society was registered, it was really governed by the regulation in
Form 'A'. It however appears that by mistake, as is evident from the affidavit
sworn by Atmaram Jhangiani, Chairman of the society, regulation in Form 'P'
which relates to tenant owner members was adopted.
This
mistake was detected in the year 1949 and accordingly at the Annual General
Meeting of the society held on 3rd September 1949 it was declared that Form 'B'
was inapplicable and therefore the mistake was rectified by a unanimously
carried resolution that regulation in Form 'A' be adopted instead of regulation
in Form 'B'. The District Deputy Registrar, Cooperative Societies, Surat by order dated 10th July 1950 approved of the amendment and
accordingly Form 'A' was adopted and Form 'B' deleted. The PG NO 64
modification in the byelaws was approved by a resolution carried at the General
Body Meeting of the society held on 26th November 1950 and forwarded to the District
Deputy Registrar for approval. After the adoption of Form 'A', byelaw 10(a) pro
tanto stood amended. Due to sheer inadvertence, however, byelaw 10(a) remained
in the form it was framed and this has given rise to an endless argument before
us. In the certificate to incorporation issued by the Registrar, Cooperative
Societies the society is classified as a tenant co-partnership society
consisting of tenant co- partner members. The mistake in allowing the byelaw
10(a) as originally framed making reference to tenant owner members, came to
the notice of the society in 1974 when the said byelaw was deleted and substituted
by a fresh byelaw 10(a) which made no reference to the admission of membership
of any owner member to the society or to the regulation in Form 'B'.
On
remand, the only contention advanced before the Judge, First Cooperative Court,
Bombay was that the society was a tenant co-ownership type of society and not
tenant co- partnership type. The learned Judge by his order dated 8th September
1976 recorded a finding that the society, in fact, was a tenant co-partnership
type of society and therefore the disputant was only a tenant co-partner
member. Against his order Rajpal Bhatia went up in revision to the Maharashtra
State Cooperative Appellate Court which by its order dated Ist July 1977
dismissed the revision as not pressed. Thereafter, the dispute came up for
adjudication before the learned Judge, First Cooperative Court, Bombay who
framed five issues in all. The learned Judge allowed the parties to adduce
their evidence thereon. After considering the evidence on record, the learned
Judge by his judgment dated 28th August 1981 came to a definitive finding that
the claim of the disputant was a claim touching the business of the society
under s. 91 of the Act: that the society is a co-partnership type of society
and not of co-ownership; that the real nature of the transaction between the
parties was that embodied in the formal agreement for leave and licence dated
1st January 1964 and further that after termination of the licence the
possession of the said Rajpal Bhatia was wrongful. According, the learned Judge
rendered an award directing the said Rajpal Bhatia to vacate and hand over
possession of the flat in question.
The
appellants' father Rajpal Bhatia went up in appeal before the Maharashtra State
Cooperative Appellate Court but without any avail. It held inter alia that in
view of the letter addressed by the District Deputy Registrar, Cooperative
Societies, Bombay dated 22nd November 1978 intimating the Court that Form 'B'
had been deleted after PG NO 65 the resolution passed at the Annual General Meeting
held on 3rd September 1949 and the amendment of the byelaws effected by order
of the District Deputy Registrar dated 10th July 1950, and particularly in view
of the fact that in the latest copy of the bye-laws there is no reference to
Form 'B', the conclusion was inescapable that the society is a tenant
co-partnership housing society and Form 'B' as was originally appended to the
byelaws was no longer applicable.
It
observed that in view of its earlier judgment in Appeal No. 236/78--Messrs Bharat
Sales Service & Anr. v. Smt. Rukibai Naraindas Bhavnani & Anr., decided
on 12th January, 1979 taking that view upon investigation
into the facts, which was upheld by the High Court in O.N. Bhatnagar v. Smt. Rukibai
Naraindas Bhavnani & Anr., in Miscellaneous Petition No. 271/79, decided on
21st April 1981, and later by this Court in O.N. Bhatnagar v. Smt. Rukibai Naraindas,
[1982] 3 SCR 681, it was no longer possible to contend that Shyam Cooperative
Housing Society Limited was a tenant ownership housing society and not a tenant
co partnership housing society. It further observed that in view of the
decision of this Court in O. N. Bhatnagar s case, learned counsel appearing for
the appellants conceded the legal position but contended that the decision in
O.N. Bhatnagar was distinguishable on facts. It observed:
"It
has to be noted that Form A' was made applicable to all the buildings of the
society and not to a particular block or building. No doubt, the byelaws of the
society were amended much later i.e., in the year i976 though the resolution
proposing the amendment was passed in the meeting held on 25.12.1974. It
appears that, though Form 'A' was made applicable in the year 195() to the
society corresponding amendment was made on 25th December, 1974 and thereafter
it was approved on 28th April, 1976. That will not make any difference because
once Form 'A' is made applicable and once Form 'B' is deleted from the bye-laws
the intention of the society was to convert the society to a Tenant Co
partnership type of society. Moreover, it has to be noted that the present
appellant was inducted in the said premises on 1st January, 1964, i e. much after the Form 'A' was adopted. As mentioned
above, it is not open to the present appellant to challenge the status of the
respondent No. I Devibai because, as mentioned above, the respondent No. I had
surrendered her status as tenant owner and had become tenant copartner member
of the society. Under these circumstances, there is no other alternative but to
hold PG NO 66 that the society is not a mixed type of society but it is a
tenant co-partnership type of Society." Further, the Appellate Court held
that merely because the disputant described herself as the owner of the flat
was not decisive of the question as to whether she was a tenant co-partner
member or a tenant owner member, and added:
"Even
though the respondent No. 1 described herself as the owner of the flat, we feel
that as she has purchased the flat from the society she might have described
herself as the owner. In common parlance the flats which are purchased from the
society or from the builders are called as ownership flats and very often we
find that even a member in a tenant co-partnership type of society describes
himself or herself as owner of the flat, either because he has purchased the
flat or he has contributed towards the cost of the construction.
In the
light of the principles laid down by this Court in Associated Hotels of India
Ltd. v. R.N. Kapoor, [1960] I SCR 368 the Appellate Court further held on a consideration
of the evidence adduced by the parties that the parties intended by the
agreement to create a licence and not a lease. It also held that the dispute
was a dispute touching the business of the society.
Shri
R.F. Nariman, learned counsel for the appellants argued the appeal with great
clarity, much resource and learning we heard him with considerable interest. It
was contended, firstly, that the intention Of the disputant the late Smt. Devibai
Advani was to demise the flat in question and therefore the real transaction
was one of lease though camouflaged in the form of an agreement for leave and licence
and therefore the jurisdiction of the Registrar under s. 91 of the Act to
adjudicate upon the reference was barred by s. 28 of the Bombay Rent Act; and
secondly, that neither of the two resolutions subsequently adopted by the
Annual General Meeting or the General Body Meeting nor the order of the
District Deputy Registrar could change the intrinsic character of the real
status of the disputant who was admittedly a tenant owner member, and the
finding of the Appellate Court that she must be deemed to have relinquished her
status as tenant owner member and became a tenant co- partner member of the
society is patently erroneous. Learned counsel very candidly accepted that he
does not rely upon s.
PG NO
67 15A of the Bombay Rent Act. That had to be so because
in the first place his entire submission proceeds on the basis that the
transaction between the parties was one of lease and not of licence and secondly,
even otherwise, the licence having admittedly been terminated by the
disputant's notice dated 2Ist May 1969, there was no subsisting licence
existing as on 1st February 1973 and s. 15A interms would be inapplicable. We
are afraid, in view of the decision of this Court in O.N. Bhatnagar s case, the
contentions advanced by the learned counsel cannot prevail.
There
can be no doubt whatever from the terms of the agreement dated Ist January 1964
as well as the overwhelming evidence on record taken in conjunction with the
facts and circumstances appearing, coupled with the course of conduct of the
parties that the real transaction was one of lease and not of licence. The
agreement between the parties is embodied in the usual standard form of an
agreement for leave and licence. The parties being executants thereof are bound
by the terms of the agreement. There is nothing to suggest that the agreement
for leave and licence was merely a device to camouflage the real nature of the
transaction viz. creation of a tenancy, which would clearly be against the
bye-laws of the society. The disputant the late Smt. Devibai Advani, the
licensor, was only a tenant co-partner member and all that she could do under
the terms of the bye- laws was to create a licence with the permission of the
society by making the licensee to be a nominal member thereof. The evidence
adduced by the disputant clearly shows that the flat in question was taken on a
licence for a term of 11 months which was renewed from time to time at the
request of the late Rajpal Bhatia till the disputant terminated the licence by
notice dated 21st May 1969. We also find no merit in the contention that the
jurisdiction of the Cooperative Courts to adjudicate upon the dispute under s.
91 of the Act was barred by s. 28 of the Bombay Rent Act.
The
matter is directly covered by the decision of this Court in O.N. Bhatnagar's
case. In rejecting the contention that a dispute of this nature was not a
dispute touching the business of the society within the meaning of s. 91(1) of
the Maharashtra Cooperative Societies Act. it was observed:
"In
the present case, the society is a tenant co- partnership type housing society
formed with the object of providing residential accommodation to its co-partner
tenant members. Now, the nature of business which a society carries PG NO 68 on
has necessarily to be ascertained from the object for which the society is
constituted, and it logically follows that whatever the society does in the
normal course of its activities such as by initiating proceedings for removing
an act of trespass by a stranger, from a flat allotted to one of its members,
cannot but be part of its business. It is as much the concern of the society
formed with the object of providing residential accommodation to its members,
which normally is its business, to ensure that the flats are in occupation of
its members, in accordance with the bye-laws framed by it, rather than of a
person in an unauthorised occupation, as it is the concern of the member, who
lets it out to another under an agreement of leave and licence and wants to
secure possession of the premises for his own use after the termination of the licence.
It must, therefore, follow that a claim by the society together with such
members for ejectment of a person who was permitted to occupy having become a
nominal member thereof, upon revocation of licence, is a dispute falling within
the purview of s. 91(1) of the Act. " In dealing with the inter-relation
between the non- obstante clause in s. 91(1) of the Act and that in s. 28 of
the Rent Act, it was observed:
"It
seems to us that the two Acts can be best harmonised by holding that in matters
covered by the Rent Act, its provisions, rather the provisions of the Act,
should apply.
But
where the parties admittedly do not stand in the jural relationship of landlord
and tenant, as here. the dispute would be governed by s. 91(1) of the Act. No
doubt, the appellant acquired a right to occupy the flat as a licensee, by
virtue of his being a nominal member, but in the very nature of things, his
rights were inchoate. In view of these considerations, we are of the opinion
that the proceedings under s. 91(1) of the Act were not barred by the
provisions of s. 28 of the Rent Act.'' It is quite evident from the affidavit
sworn by Atmaram Jhangiani, Chairman of the Shyam Cooperative Housing Society
Limited, that the society is purely a tenant co-partnership type of Housing
society consisting only of tenant co-partner members and there are no tenant
owner members in the society; nor are there any tenant owner members in block
No. X where the flat in question is located.
As H
already stated, while framing the bye-laws regulation in Form 'B'was PG NO 69
by mistake adopted. This mistake was realised in 1949 and at the Annual General
Meeting of the society held on 3rd September 1949 it was decided that the
regulation in Form 'B' was inapplicable and therefore the mistake was rectified
by deleting Form 'B' and substituting Form 'A'. This amendment was duly
approved by the District Deputy Registrar, Bombay by his order dated 10th July 1950.
The aforesaid resolution was duly ratified at the General Body Meeting of the
society. That being so, bye-law 10(a) making a reference to tenant owner
members became a mere superfluity and was wholly redundant. The rights of the
parties cannot be spelled out from the terms of the bye-law 10(a) as originally
framed. Nor would the mere description by the disputant the late Smt. Devibai Advani
describing herself to be the owner of the society, affect the classification of
the society because she was, in fact and in law, nothing but a tenant
co-partner member. It also appears from the certificate of registration issued
by the Registrar, Cooperative Societies that the society was classified as a
tenant co partnership housing society. The erroneous description in bye
law-10(a) of the society having tenant owner members came to be rectified when
the said bye- law was replaced in l974 by a new bye-law 10(a). In view of the
subsequent change brought about by the amendment of the bye-laws, there was no
question of the disputant being regarded as a tenant owner member. The
Appellate Court as well as the learned Judge of the First Cooperative Court have
rightly held her to be a tenant co-partner member. The appellants' father Rajpal!
Bhatia having been inducted into the premises under the terms of the agreement
for leave and licence dated 1st January 1964, cannot be heard to say that
disputant was a tenant owner member and not a tenant co- partner member or that
the transaction was one of lease and not of licence. These aspects are
concluded by the concurrent finding of fact based on appreciation of evidence
recorded by the Courts below. There is no reason for us to come to a contrary
conclusion.
We
cannot but briefly refer to a few of the decisions cited. As explained in the
affidavit sworn by Atmaram Jhangiani. Chairman of the society, the decision in Sabharwal
Brothers v. Smt Guna Amrit Thandani, [1973] I SCR 53 proceeds on the assumption
that Smt. Guna Amrit Thandani was an owner member. It appears that the true and
correct factual position was not placed before the Court that under the changed
bye-laws of the society, particularly after the deletion of Form 'B', she could
only he a tenant co-partner member. It follows that the ultimate conclusion
arrived at was based upon inaccurate facts. Be that as it may, a decision based
upon a statement of inaccurate facts which has no semblance of reality would
not change the actual PG NO 70 legal status of the society as a tenant
co-partnership type of housing society, nor the classification made by the
Registrar, Cooperative Societies in his certificate of incorporation issued by
him, classifying the society as a tenant co-partnership society consisting only
of tenant co- partner members. In view of the real factual position now brought
out, it is difficult to come to the conclusion that the society was a mixed
type of society or that the building in question where the flat in dispute is
situate, was a multi-storeyed building consisting of residential flats of both
types viz. tenant owner flats and tenant co partnership flats. In any event,
the decision in Sabharwal Brothers case is clearly distinguishable on facts.
The contention of Shri Nariman that the society was a mixed type of society
must therefore fail.
The
decision of this Court in Ramesh Himmatlal Shah v. Harsukh Jadhavji Joshi, [
1975] Suppl. SCR 270 is also distinguishable. In that case, the question was
whether a flat in a tenant co-partnership housing society was liable to
attachment and sale in execution of a decree. The Court laid down that the
right to occupy the flat owned by a cooperative housing society is a species of
property. It was further held that there was nothing in the language of s. 31
of the Maharashtra Cooperative Societies Act to indicate that the right to
occupation of such a flat which was the right sought to be sold by auction, was
not attachable in execution of the decree. Nor was there anything in the
section to even remotely include a prohibition against attachment or sale of
the aforesaid right to occupation of the flat. The only restrictions under s.
29(2) of the Act are that the member may not transfer his interest in the
property prior to one year and the transfer is made to an existing member of
the society or to a person whose application for membership has been accepted
by the society.
As
regards bye-law 710 the Court observed that any contravention of the bye-law
would not make the assignment invalid under the Act unlike in the case of a
transfer being void under s. 47(3). Further, that s. 29 read with r. 24 shows
that there is no prohibition as such against transfer of a share to a member or
even to a non-member if he consents to be a member and makes an application for
membership, by purchasing five shares as provided under bye- law 9. The
ultimate decision of the Court was that the right to occupation ot' a flat is
property both attachable and sale able, inasmuch as s. 60 of the Code of Civil
Procedure, l908, is not exhaustive as such. It also refers to any other sale
able property, movable or immovable, whether the same be held in the name of
the judgment-debtor or by another person on his behalf. The right to occupation
of a flat is property both attachable and sale able. Specific non- inclusion of
a particular species of property under s. 60 is PG NO 71 therefore not of any
consequence if it is sale able otherwise. the decision in Ramesh Himmatlal
Shah's case is therefore of little or no assistance.
Chainani,
CJ speaking for himself and V.M. Tarkunde, J. in Dr. Manohar Ramchandra Sarfare
v. The Konkan Co-operative Housing Society Ltd. & Ors., AIR 1962 Bom. 154
brought out the true concept of a tenant co-partner housing at p. 157 in these
words:
"(T)he
property in the whole estate remains absolutely with the society as a whole.
The member contributes in the first instance by shares and then pays rent so
calculated as to cover not only the economic rent of his tenant or house, but
also an amortization or sinking fund payment, which at the end of 25 years or
40 yars, as the case may be, repays the whole value of the building. At the end
of that period, he is credited with further shares in the society equivalent to
the value that he has paid up and the normal interest on these shares is equal
to the economic rent which he has to pay. At the end of the period he is
therefore in the position of occupying the building free of rent Or merely so
as a tenant of the society of which he is himself a member and therefore a
controlling authority." See also: I.R. Hingorani v. Pravinchandra,
(1966-67) Bom. LR 306; Contessa Knit Wear v. Udyog Mandir Cooperative Housing
Society. AIR 1980 Bom. 374 and Bandra Green Park Co- operative Housing Society
Ltd. & Anr. v. Mrs. Dayadasi Kalia & Ors. AIR 1982 Bom. 428. These
cases more or less reflect the different views that have prevailed in the High
Court but the law is now governed by the principles laid down by this Court in
O. N. Bhatnagar's case .
The
result therefore is that the appeal must fail and is dismissed(l with costs.
The appellants are however given six months' time to vacate the disputed
premises on their furnishing the usual undertaking to the Registrar of this
Court within four weeks from today in the form of affidavits sworn by each one
of them that they shall deliver vacant and peaceful possession to respondents
nos. i and 2 on or after 31st March 1989 and shall not in the meanwhile part
with, assign or otherwise encumber the premises in any manner.
S.L.
Appeal dismissed.
Back