Citation : 2024 Latest Caselaw 26238 Bom
Judgement Date : 9 October, 2024
Neeta Sawant
2024:BHC-AS:40214 WP-16068-2023-FC
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO. 16068 OF 2023
Mr. Arvind Ramchandra Wagajkar ....Petitioner
(Orig. Defendant/Respondent in
Civil Appeal No. 161 of 2016)
: Versus :
1. Shri. Maniklal Motilal Bhandari
2. Shri. Mohanlal Motilal Bhandari
3. Shri. Santoshkumar Motilal Bhandari
4. Mrs. Lata Mohanlalji Gundecha
5. Mrs. Chaya Babulalji Gandhi ....Original Plaintiffs/Appellants
In Civil Appeal No. 161 of 2016
6. Mr. Vaibhav Arvind Wagajkar
7. Mr. Rahul Arvind Wagajkar ....Original Defendant Nos.2 and 3
in Civil Suit No. 219 of 2010/
Respondents
____________
Mr. S.C. Wakankar with Ms. Aishwarya Bapat, for the Petitioner.
Mr. Shlok Parekh i/by. Vaish Associates, for the Respondents.
_____________
CORAM : SANDEEP V. MARNE, J.
Judgment Reserved on : 1 October 2024.
Judgment Pronounced on : 9 October 2024.
JUDGMENT :
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1) Petitioner-Defendant has filed this petition challenging the decree dated 10 August 2023 passed by the District Court, Baramati allowing Regular Civil Appeal No. 161/2016 and setting aside the judgment and order dated 2 September 2016 passed by the Second Joint Civil Judge Junior Division, Daund in Rent Suit No. 219 of 2010. The Appellate Court has decreed the suit and has directed Petitioner-Defendant to handover possession of the suit premises to the Plaintiff with further directions to
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conduct enquiry into mesne profits under Order 20 Rule 12 of the Civil Procedure Code, 1908.
2) Shop admeasuring 272 sq. ft in 'Bhandari Building' situated at Municipal House No. 94, New No.187 at Daund, District-Pune are the suit premises. The house property was originally owned by the Motilal Dalichand Bhandari, after whose death, the house property is inherited by the Plaintiffs. The suit premises were let out to Defendant No.1-Arvind Ramchandra Wagajkar on monthly rent of Rs. 125/- for conducting business of stationery and medicines. Plaintiff's father had instituted Regular Civil Suit No. 121 of 1973 for recovery of possession of the suit premises which was decreed on 27 February 1976. The Appeal against the decree was partly allowed on 14 October 1977 and the Defendant therein were directed to handover possession of half portion of the premises involved in that suit. Cross-petitions were filed before this Court by landlords and tenants and compromise was entered into by the parties, under which it was agreed that the firm M/s. R.M. Wagajkar was dissolved and Defendant No.1-Arvind Ramchandra Wagajkar alone would the tenant in respect of the suit premises who handed over possession of northern portion of the premises involved in the previous round of litigation to Plaintiff's father in the year 1982 and Defendant No.1 continued as tenant in respect of the balance portion, which are suit premises involved in the present petition.
3) Plaintiffs instituted Regular Civil Suit No.219/2010 in the Court of Civil Judge Junior Division, Daund on the grounds of default in payment of rent and bonafide requirement. It was contended by the Plaintiffs that Defendant No.1 was in arrears of rent from September 2006, for which demand notice was served on Defendant No.1 on 26 July 2010. That the rent from 1 September 2006 to 31 August 2010 was paid by Defendant No.1-tenant to Plaintiffs vide reply dated 13 August 2010. So far as the bonafide requirement is concerned, it was pleaded that son of Plaintiff No.2, Atul as well his nephew Swapnil had turned major and
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needed premises for conducting their own businesses. It was also pleaded that Defendant No.1 had his own premises in Daund City.
4) In the suit, Plaintiffs impleaded Defendant No.1, as well as, his two sons, Vaibhav Arvind Wagajkar and Rahul Arvind Wagajkar as Defendant Nos. 2 and 3. The suit was resisted by Defendants by filing common Written Statement pleading that Plaintiff was in possession of several other premises, which were suppressed. The Plaint was amended to incorporate pleadings about development of another property by Defendant No.1 and his children and availability of the suitable alternate accommodation in the ownership building constructed thereat. Defendants filed additional Written Statement contending that only residential premises are agreed to be handed over under the Development Agreement. Both the parties led evidence in support of their respective claims. Plaintiff examined Shri. Mohanlal Motilal Bhandari (Plaintiff No.2), Nandkishore Anandrao Yadav and Amit Popatlal Bamb and relied upon several documents. Defendants examined Arvind Ramchandra Wagajkar (Defendant No.1) and also relied upon several documents. After considering the pleadings, documentary and oral evidence, the Trial Court proceeded to reject both the grounds of default in payment of rent and bonafide requirement of Plaintiffs. The suit was accordingly dismissed by decree dated 2 September 2016. Plaintiffs filed Regular Civil Appeal No.161/2016 in District Court, Baramati. The Appeal has been allowed by reversing the findings of the Trial Court on both the issues of default in payment of rent as well as the landlord's bonafide requirement. The Appellate Court has accordingly allowed the Appeal reversing the decree of the Trial Court. Plaintiff's suit has accordingly been decreed by directing Defendants to handover possession of the suit premises with further enquiry into mesne profits under Order 20 Rule 12 of the Code. Aggrieved by the decree passed by the Appellate Court on 10 August 2023, Defendant No.1-Petitioner has filed the present petition.
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5) Mr. Wakankar, the learned counsel appearing for
Petitioner/Defendant No. 1 would submit that the Appellate Court has erroneously reversed well-reasoned decision of the Trial Court rejecting both the grounds of default in payment of rent and bonafide requirement. That in the plaint itself, it was pleaded that the entire arrears of rent upto 31 August 2010 was paid by Defendant No.1 immediately upon receipt of notice dated 26 July 2010. That therefore the suit on the ground of default in payment of rent could not have been instituted. He would further submit that Defendant No.1 was regular in payment of rent during pendency of the suit. Taking me through the judgment of the Appellate Court, he would submit that no specific pleadings are recorded by the Appellate Court while reversing the decision of the Trial Court on the issue of default in payment of rent. That the Appellate Court has erroneously mixed up the issues of bonafide requirement and default in payment of rent and has decided both the issues together. He would therefore submit that the judgment and decree passed by the Appellate Court suffers from the vice of non- application of mind and deserves to be set aside.
6) So far as the ground of bonafide requirement is concerned, Mr. Wakankar would submit that it was Plaintiffs' duty to first disclose all the premises available with them and thereafter plead and prove as to how the premises already available with them were not suitable or convenient for fulfilling their bonafide requirement. That the Plaintiffs in the present case chose to suppress the premises available with them and it was the Defendants, who were required to bring details about them on record. He would submit that for failure to disclose the available premises, the suit ought to have been dismissed by the Appellate Court. In support, he would rely upon judgment of this Court in Vasant Mahadeo Gujar Versus. Baitulla Ismail Shaikh & Another1.
(2015) 5 Bom.C.R. 243
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7) Taking me through the findings recorded by the Appellate
Court, Mr. Wakankar would submit that the Plaintiffs thoroughly failed in proving that son of Plaintiff No.2 or his nephew did not have other premises for conduct of their respective businesses. He would take me through the evidence on record to demonstrate that Plaintiffs possessed four rooms on upper floor of the shop-Rahul Medical. That in the compromise effected in the previous round of litigation, Plaintiffs have already secured substantial portion of the suit premises. That children of Plaintiffs are found to be doing independent businesses at several premises in Daund. Mr. Wakankar would therefore submit that the need sought to be put forth by the Plaintiff was not at all genuine and was rightly rejected by the Trial Court. In support he would rely upon judgment of the Apex Court in Shiv Sarup Gupta Versus. Dr Mahesh Chand Gupta2. Mr. Wakankar would accordingly pray for setting aside the decree passed by the Appellate Court.
8) The petition is opposed by Mr. Parekh, the learned counsel appearing for Respondent Nos.1 to 5-Original Plaintiffs submitting that no interference is warranted in well considered decision rendered by the Appellate Court. He would submit that Petitioner has attempted to mislead the Trial Court by inviting its attention to various other residential premises ignoring the fact that what is needed by the Plaintiffs are commercial premises for conduct of business by their next generations. That Defendants could not establish availability of even single commercial premises for Plaintiff for conduct of business by their children. On the contrary, the Appellate Court has considered the photographs of the suit premises and has seen that the suit shop was closed and was in dilapidated condition. That the Appellate Court has considered the position that Defendants are not occupying the suit premises. That they did not produce valid license for running of pharmacy store. That therefore the bonafide need of Plaintiffs has rightly been appreciated by the Appellate Court. He would rely upon judgment of this Court in Balwant P. Doshi Versus. Shantaben
(1999) 6 SCC 222
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Dhirajlal Shah and another 3 in support of his contention that the tenant cannot dictate the landlord as to how to use the premises owned by him. That it is sufficient for the landlord to express the desire to occupy the premises and it is not necessary to establish the dire necessity so long as existence of need is demonstrated. Mr. Parekh would pray for dismissal of the petition.
9) Rival contentions of the parties now fall for my consideration.
10) Plaintiffs sought eviction of Defendant No.1-tenant on twin grounds of default in payment of rent and bonafide requirement. As observed above, the demand notice for payment of rent from 1 September 2006 onwards was made good by Defendant No.1 by paying the entire arrears of rent from 1 September 2006 to 31 August 2010 on 13 August 2010. Ordinarily therefore the Plaintiff could not have included the ground of default in payment of rent. The ground of default was however included by demanding Rs. 3000/- towards notice expenses. Thus, though the entire arrears of rent were paid, Plaintiffs contended that Defendant remained in arrears of Rs.3,000/- towards notice expenses. In my view, eviction of tenant under the provisions of Section 15 of the Maharashtra Rent Control Act, 1999 (MRC Act) cannot be sought for failure to pay the notice charges. In that sense, ordinarily Plaintiff could not have included the ground of default in payment of rent in the suit. However, the Full Bench of this Court in Babulal Fakirchand Agrawal Versus. Suresh Kedarnath Malpani & Ors. 4 has held that the ground of default under Section 15(3) is independent from Section 15(2) and that even if the default indicated in the demand notice is made good, the law does not prevent the Plaintiff from maintaining the suit for recovery of possession if conditions specified under Section 15(3) of regular deposit of rent is not fulfilled, the Court is empowered to pass decree for eviction. Therefore, I am unable to hold that the suit on the ground of default in payment of rent was not maintainable.
2002(4) Mh.L.J. 473
2017 4 All M.R. 365
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11) The Trial Court rejected the ground of default in payment of
rent holding that the entire amount demanded was already paid. There is nothing on record to indicate that Defendant No.1 committed any default in regular payment of rent during pendency of the Suit or Appeal. The Appellate Court has mixed up the issue of default in payment of rent and that of bonafide requirement and has answered both the issues together which is clearly erroneous. The Appellate Court has not recorded a single finding as to why it is has reversed the finding of default in payment of rent. Therefore, the finding of the Appellate Court recording the ground of default in payment of rent is clearly unsustainable.
12) Coming to the ground of bonafide need of Plaintiffs, the pleaded case is that the son of Plaintiff No.2 (Atul) and of Plaintiff No.3 (Swapnil) had turned major and required suit premises for commencement of their businesses. Additional bonafide need of Plaintiff No.2 was also pleaded for earning income for livelihood. Defendant contested the claim of bonafide requirement pleading that in addition to the suit premises, Plaintiffs possessed two storey building in which Santosh Kirana Store was being operated. That business of Rahul Medical was also being operated in adjoining premises by Rahul Bhandari. That Plaintiff No.1-Manik was operating Atul Mobile Shopee, tea stall and Manish Mini Market and Medical at House Property No.1066. It was also pleaded that Plaintiff No.2 is a journalist and was able to earn livelihood. That additionally Plaintiffs had several shops, as well as property bearing C.S. No.1436.
13) In his Affidavit of evidence, Plaintiff No.2 Mohanlal Bhandari repeated the contents of para-7 of the plaint. In his cross-examination, Defendants attempted to secure admissions relating to availability of other properties for Plaintiffs. It was admitted that son of Plaintiff No.1 is advocate at Mumbai. That four rooms above shop-Rahul Medical are in possession of the Plaintiffs. Thus, in the cross-examination there is no admission by Plaintiffs about availability of any commercial premises for
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conduct of business by children of Plaintiff Nos.2 and 3. Nothing is brought on record to indicate that commercial premises are lying vacant, in which sons of Plaintiff Nos.2 and 3 could commence their business. Mere availability of 'some premises' is not sufficient unless Defendant No.1 was to prove that the said premises are commercial, in which sons of Plaintiff Nos.2 and 3 could conduct their businesses. The four rooms located above Rahul Medical are residential. There is nothing on record to indicate that recovery of some portion of the premises during compromise has resulted in availability of additional commercial space for Plaintiffs, in which sons of Plaintiff Nos.2 and 3 could commence their business. There is nothing on record to indicate that the portion of premises handed over to the Plaintiffs during the course of compromise are commercial in nature or that they were lying vacant at the time of filing of the suit. In my view, therefore the Defendants could not prove availability of any commercial premises for commencement of business by children of Plaintiff Nos.2 and 3.
14) Mr. Wakankar has led great deal of emphasis on Plaintiff's failure to disclose availability of various premises. True it is that when Plaintiff comes up with the case of bonafide requirement, he needs to first disclose availability of possession of entire property and then plead as to how the said properties are not convenient for particular use. Mr. Wakankar has relied upon judgment of this Court in Vasant Mahadeo Gujar (supra) in which this Court has held in paras-54, 55 and 58 as under:
54] However, the respondentlandlords, have not at all been candid with the Court insofar as the pleadings are concerned. In the course of evidence, it has come on record that the respondent landlords have, besides the suit premises several other premises, which are being used by them for purposes of commerce as well as residence. Some of the premises, may have been acquired post the institution of the suit including in particular, the premises acquired by one of the sons of Baitullah Shaikh. Nevertheless, there were no disclosures volunteered in the course of examinationinchief. Even if, the premises subsequently acquired are left out of consideration, there was a duty upon the respondentlandlords to fully and candidly make disclosure about the premises in their occupation, both for the purposes of residence as well as commerce and thereafter to explain, howsoever briefly, the subsistence of the need in respect of suit premises. The
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respondentlandlords have completely failed in this aspect. Such non-
disclosure is a relevant consideration in the context of determining both the reasonability as well as bona fides.
55] The tenants have managed to bring on record the material in the context of occupation and control of several premises by the respondent- landlords. Looking to the conduct of the respondent-landlords, there is no certainty as to whether the premises in respect of which the tenants have obtained and produced documents, are only premises which are in the occupation of control of the respondent landlords or whether there are some others as well. However, even on basis of the existing material on record, there was no question of making any decree under Section 16(1) (g) of the Rent Act.
58] In case of Tarachand Hassaram Shamdasani (supra), the learned Single Judge of this Court has held that it is obligatory for the landlord to disclose in the pleadings and in his evidence that the fact that he owns other premises which were capable of being utilized for the requirement pressed into service in the suit filed against the tenant and to further disclose and explain that in spite of those acquisitions, ownership of other premises, the requirement which is pressed into service against the tenant would still survive. It is only then the landlord would be entitled to invoke the ground of reasonable and bona fide requirement and would succeed in establishing that the need is indeed bona fide and reasonable. In the said case also, there were no disclosures and the material with regard to ownership of other premises came on record only during the course of crossexamination. This was possible because the tenants through their efforts managed to obtain information. This Court, upset the concurrent findings as to bona fide and reasonable requirement, where the landlord has suppressed such material particulars. The relevant observations are contained in paragraphs, 7,8 and 9, extract of which reads thus:
7. ...................That building can be used for residence. These facts were indeed relevant for deciding the issue of bonafide and reasonableness of the requirement of the Plaintiff, but were not disclosed either in the pleadings or atleast in the examinationinchief when the Plaintiff entered the witness box. However, were elicited only during the cross examination conducted by the Defendanttenant. This was possible only because all these details were within the knowledge of the Defendant tenant. In spite of such overwhelming evidence on record, the Courts below have proceeded to answer the issue of bonafide and reasonable requirement in favour of the Respondent landlord. That cannot be countenanced, to say the least.
8. To my mind, however, it is obligatory for the landlord to disclose in the pleadings and in his evidence the fact that he owns other premises which were capable of being utilized for the requirement pressed into service in the suit filed against the tenant and to further disclose and explain that inspite of those acquisitions and ownership of other premises, the requirement which is pressed into service against the tenant would still survive. It is only then the landlord would be entitled to invoke this ground and would succeed in establishing his need to be bonafide and reasonable.
9. I have no hesitation in taking the view that in the fact situation of the present case the Plaintiffs has failed to plead and also depose in his evidence (examinationinchief) about the ownership of other premises capable of being used for the requirement pressed into service in the subject suit. Besides, he has failed to disclose and explain that even the other premises were not sufficient to satisfy the requirement pressed into service in the suit against the tenant. Only when the landlord pleads
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and proves all these material facts that the Court would be able to adjudicate fully, completely and effectually as to whether the requirement pressed into service by the landlord in the suit so filed is bonafide and reasonable. As mentioned earlier, it is well settled that the landlord is not only required to establish his need to be bonafide but also to be reasonable. If the landlord fails to plead or establish either of this ingredient then the ground under Section 13(1)(g) of the Act for eviction is unavailable to the landlord. Inherent in this test is that if the landlord has failed to disclose relevant materials in the pleading and in his evidence (examinationinchief), dejure, the landlord has not approached the court with clean hands. In such a case, it will be the duty of the court to nonsuit the landlord with regard to this ground. It will be useful to place reliance on the enunciation of the Apex court in the case of S.P. Chengalvaraya Naidu's case (supra). The Apex Court has observed that duty is cast upon the Plaintiff to disclose all the facts, it is the duty of the Plaintiff to come to Court with true case and prove it by true evidence. The Apex Court has further observed that deliberate deception with the desire of securing something by taking unfair advantage of another, it is a deception in order to gain by another's loss, it is a cheating intended to get an advantage. Further, in Paragraph 6 it has observed that, non disclosure of all the material and relevant facts at the trial tantamount to playing fraud on the Court. A litigant, who approaches the Court, is bound to produce all the documents executed by him which are relevant to the litigation. Withholding of any vital document in this case information, in order to gain advantage on the other side then he would be guilty of fraud on the Court as well as on the opposite party.
Such a person can be summarily thrown out at any stage of the litigation. If this principle is to be applied to the facts of the present case, I have no manner of doubt that the RespondentLandlord will have to be non suited on this ground. Because, it is a case of non disclosure of material facts and information, therefore, one of approaching the Court with unclean hands. And as observed by the Apex Court tantamount to playing fraud on the court as well as the opposite side. In this case sheerly because the Petitioner tenant was vigilant enough, could muster the necessary information to confront the Respondent landlord regarding his need being not bonafide and reasonable.
(emphasis supplied)
15) There can be no doubt to the position that Plaintiffs ought to have disclosed all the premises in their possession for the purpose of enabling the Court to decide the issue of bonafide and reasonable requirement. However considering the peculiar facts and circumstances of the case, I am not inclined to disturb the finding of bonafide requirement only on technical reason of failure on the part of Plaintiffs to make full disclosure. The Courts below have assessed the evidence on record about availability of all premises with the rival parties. While leading evidence with regard to availability of alternate premises for Plaintiffs, Defendants could not establish availability of commercial premises for commencement
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of business by children of Plaintiff Nos.2 and 3. I am therefore not inclined to disturb the finding of the Appellate Court only on account of failure on the part of the Plaintiff to disclose all the premises in their possession.
16) By now it is well settled position of law that the Plaintiff merely needs to disclose the need and it is not for the Court or the tenant to dictate terms as to how Plaintiff must put the premises in his possession to particular use. In this regard, reliance by Mr. Parekh on judgment of this Court in Balwant P. Doshi (supra) appears to be apposite in which this Court held in para-4 as under:
4. After having considered the rival submissions, to my mind, no infirmity can be traced to the finding of fact recorded by both the Courts below that the petitioner was not in possession of the suit premises much less as a licencee on the basis of a subsisting licence on 1-2-1973. The court below for the reasons noted in their decisions have correctly doubted the genuineness of the alleged leave and licence relied by the petitioner. Once this finding is undisturbed, it necessarily follows that the petitioner is not a protected licencee and would get no right to assail the decree of possession. Assuming that, the petitioner is a protected licencee as claimed, even then since the petitioner has contested the suit claim of the respondent No. 1 of bona fide and reasonable requirement will be bound by that finding. Accordingly, if finding on that issue was to be upheld by this Court then the petitioner would also suffer the eviction decree and bound by the same. Therefore, I am straightway addressing this decision to the issue of bona fide and reasonable requirement instead of dwelling upon the issue of legality of the leave and licence agreement relied by the petitioner or his status as protected licencee. This is not to say that I accept the petitioner's contention that he is a protected licencee.
Reverting to the merit of the issue of bona fide and reasonable requirement, the Appellate Court has neatly summarized the evidence adduced on behalf of the respondent No. 1. The respondent No. 1 has herself entered the witness box as well as examined her two sons as PW 2 and PW 4. No doubt the evidence of respondent No. 1 was not very elaborate but all the relevant details regarding the reasonable and bona fide need of the respondent No. 1 and her family members has been unmistakably stated by her sons viz. PW 2 and PW 4. Both the courts below have examined the evidence of the plaintiff's witnesses as a whole and have recorded clear finding of fact that the plaintiff has established the need for herself and her family members being bona fide and reasonable. These findings of fact cannot be interfered in exercise of writ jurisdiction. The Appellate Court has rightly applied the settled legal position. It is well settled that the courts cannot ordinarily doubt the bona fide need of the landlord nor the courts can dictate to the landlord as to how the premises owned by him should be used. It is sufficient for the landlord to express his desire to occupy the premises which are owned by him. It is not necessary for the landlord to establish the dire necessity but it is enough to show that some need exists. (See
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(1996) 5 SCC 353 : (1998) 3 SCC 341 : (1998) 8 SCC 1 : (1996) 5 SCC 344 and (1999) 4 SCC 1). In the present case, the plaintiff has produced ample evidence on record and has established the bona fide need for herself and for her family members. Both the Courts below have analysed the evidence of plaintiff's witnesses and have held that the need pressed into service by the plaintiff was also reasonable because the plaintiff was presently staying with her son at Sion which was a rented premises in the name of her son. The courts below have rightly applied the settled principle that when the landlord who is staying in the rented premises desires to stay in his own accommodation then the Courts, as a rule should not refuse the decree. It is relevant to note that both the Courts below have also held that the premises presently occupied by the respondent belongs to her son which is a rented premises and only admeasures 750 sq. ft. whereas the suit premises are 1200 sq. ft. with 3 bed rooms. Understood thus, the Courts below have rightly held that the respondent No. 1 plaintiff has established the reasonable and bona fide need in respect of the suit premises. I have no hesitation in affirming the said view taken by the courts below.
(emphasis added)
17) Accordingly, Defendants cannot dictate terms for Plaintiffs that the children of Plaintiff Nos.2 and 3 should conduct business on first floor of the premises above Rahul Medical or at any other residential premises. The need expressed by Plaintiffs about commencement of new businesses by children of Plaintiff Nos.2 and 3 appears to be genuine. Therefore, reliance of Mr. Wakankar on judgment of this Court in Shiv Sarup Gupta (supra) does not assist the case of the Petitioner.
18) What bears mention is the factum of Defendant No.1 not using the suit shop and also availability of additional premises for Defendants out of the redevelopment process carried out in respect of their own property. Defendant No.1 was running pharmacy business at the suit premises and therefore it was incumbent for him to demonstrate existence of valid pharmacy license to prove use of the suit premises. The Appellate Court has taken into consideration the photographs showing that the suit premises were lying shut and in dilapidated conditions. No evidence is produced by Defendants to demonstrate active running of pharmacy business in the suit premises. In my view, therefore the finding of comparative hardship recorded by the Appellate Court does not warrant any interference.
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19) After considering the overall conspectus of the case, I am of
the view that Plaintiffs have established their genuine and bonafide need in respect of the suit premises. The decree therefore needs to be sustained only on the ground of bonafide requirement. The Writ Petition being devoid of merits is accordingly dismissed. Petitioner is however granted time upto 31 December 2024 to handover possession of the suit premises to the Plaintiff.
[SANDEEP V. MARNE, J.]
NEETA SHAILESH
SHAILESH Date:
SAWANT 2024.10.10
17:33:35
+0530
9 October 2024
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