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Mahadev P Kambekar (D) Tr. LRs. v. Shree Krishna Woolen Mills Pvt. Ltd.

Civil Appeal · 2019 INSC 116Decided 31 Jan 2019
Civil Appeal Nos. 5753-5754 of 2011
Justice Abhay Manohar Sapre · Justice R. Subhash Reddy

Background

A landlord and tenant were locked in litigation over leased land in Mumbai: the tenant sued for specific performance of a clause allowing them to purchase the land, while the landlord filed a counter-claim seeking the tenant's eviction and unpaid rent. The trial court (Bombay High Court, original side) ruled partly for each side, but the Division Bench on appeal held that the landlord's counter-claim for eviction and rent could not be entertained by that court at all, because such disputes are reserved exclusively for the Court of Small Causes, Bombay under Section 41 of the Presidency Small Cause Courts Act, 1882. The landlord's heirs appealed that jurisdictional ruling to the Supreme Court.

Decision Breakdown

The Supreme Court held that the question was already settled by its earlier ruling in Mansukhlal Dhanraj Jain v. Eknath Vithal Ogale, which established that any suit relating to recovery of possession or rent between a landlord and tenant (or licensor and licensee) in Greater Bombay falls within the exclusive jurisdiction of the Small Cause Court, regardless of which other court the matter happens to be raised in. Since the landlord's counter-claim was, in substance, exactly this kind of possession/rent dispute, the regular civil court had no power to decide it. The Supreme Court therefore agreed with the High Court and dismissed the appeal, while expressly leaving all the underlying factual disputes (such as exact lease area) to be argued afresh before the competent Small Cause Court.

Lesson Learnt

In Mumbai, disputes between a landlord and tenant over possession of property or recovery of rent must go to the specialized Court of Small Causes: this exclusive jurisdiction cannot be bypassed simply by raising the issue as a counter-claim in an ordinary civil suit.

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

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