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Central Bank of India v. N.R.C. Limited

Contempt Petition (Civil) · Neutral citation not assigned (Contempt Petition No. 147 of 2014 in SLP (Civil) No. 24874 of 2013)Decided 5 Mar 2014
Contempt Petition No. 147 of 2014 in SLP (Civil) No. 24874 of 2013
Justice H.L. Gokhale · Justice Kurian Joseph

Background

N.R.C. Limited had been allowed extra time to vacate the bank's premises on condition that it filed an undertaking and paid occupation charges. It did neither, and resisted enforcement by claiming protection as a tenant whose occupation began before the public-premises legislation.

Decision Breakdown

The Court permitted the bank to recover possession, with police assistance if necessary, and disposed of the contempt petition in those terms. The company had paid-up share capital exceeding Rs. 1 crore and therefore lost the relevant Maharashtra rent-control protection when the 1999 Act came into force. The bank's later eviction proceedings under the Public Premises Act were consequently valid. Financial difficulties already raised and then withdrawn did not justify occupying the premises without paying the required charges.

Lesson Learnt

Extra time granted to leave rented premises depends on complying with the court's conditions; ignoring payment and undertaking requirements can lead to immediate enforcement of possession.

Official source (sci.gov.in)View Judgment (PDF)

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