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Savatram Rampratap Mills v. Radheyshyam s/o Laxminarayan Goenkar (D) Thr. LRs. & Anr.

Civil Appeal · 2018 INSC 721Decided 20 Aug 2018
Civil Appeal No. 751 of 2008
Justice Abhay Manohar Sapre · Justice Sanjay Kishan Kaul

Background

Savatram Rampratap Mills, a cotton mill at Akola later taken over by the Government-owned National Textile Corporation, issued eviction notices to a tenant under the Public Premises (Eviction of Unauthorized Occupants) Act, 1971, but directed him to appear for proceedings in Mumbai even though the premises were in Akola. The tenant challenged this in the Bombay High Court (Nagpur Bench), arguing the proceedings could only be held at Akola since that is where the cause of action arose and where the governing notification placed jurisdiction. Both the Single Judge and the Division Bench of the High Court agreed with the tenant and quashed the notices, prompting the Mill to appeal to the Supreme Court.

Decision Breakdown

The Supreme Court upheld the High Court's view that the Estate Officer's jurisdiction under Section 3(b) of the Act is tied to the "local limits" specified in the official notification, and since that notification placed the Mill's premises within Akola's limits, proceedings could only be validly initiated there, not in Mumbai. The appeal was dismissed, but the Court clarified that the Mill remained free to issue fresh eviction notices and conduct the proceedings properly at Akola within one month, with any resulting eviction order remaining subject to final adjudication. Two related appeals (C.A. Nos. 9700 and 9704 of 2014) raising the same point were dismissed on the same reasoning.

Lesson Learnt

A government authority must exercise its statutory powers only within the geographic limits fixed by the notification creating that power: procedural shortcuts that ignore jurisdictional boundaries will be struck down, even if the underlying claim may later be pursued correctly.

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

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