As per case facts, the Petitioner, an Asset Reconstruction Company, acquired security interest in leasehold rights for certain premises and has been in occupation since August 2012 without paying rent. ...
WP--11194-26.DOC
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO. 11194 OF 2026
JM Financial Asset Reconstruction
Company Ltd.
Acting in its capacity as trustee of
JMFARC BOI 2009 Trust
Having its registered of�ce at
7
th
Floor, Cnergy, Appasaheb Marathe
Marg, Prabhadevi, Mumbai – 400 025
and corporate of�ce at
Of�ce No.22, Lloyds Centre Point,
Appasaheb Marathe Marg,
Prabhadevi, Mumbai – 400 025. ...Petitioner
Versus
1. Mumbai Port Authority
(formerly the Board of Trustees
of the Port of Mumbai),
a statutory corporation
constituted under Section 3 of the
Major Port Authorities Act, 2021,
having its registered of�ce at
V�aydeep Building, Shoorji
Vallabhdas Marg, Fort,
Mumbai - 400001.
2. The Estate Of�cer, Mumbai
Port Authority, an of�cer
appointed under Section 3 of the
Public Premises (Eviction of
Unauthorized Occupants) Act,
1971, having his of�ce at Estate
Division, 3
rd
Floor, V�aydeep
Building, Shoorji Vallabhdas
Marg, Fort, Mumbai – 400001.
3. Shubh Hospitality Pvt. Ltd.,
a private ltd. company having
its registered of�ce at 30,
SAINATH, PA 1/23
SAINATH
SANJAY
BODKHE
Digitally signed
by SAINATH
SANJAY BODKHE
Date: 2026.09.10
22:15:07 +0530
WP--11194-26.DOC
P. J. Ramchandani Marg,
Opposite Radio Club, Colaba,
Mumbai – 400 005.
And
Flat No.2001, Bulding No.116,
Sayba Elegant, Nehru Nagar,
Near Nehru Nagar Police Station,
Mumbai – 400024.
4. Bank of India,
Corporate Banking Branch,
4
th
�oor, 70/80 M. G. Road,
Mumbai – 400023.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
…Respondents
_ _ _ _ _ _ _ _ _
Mr. Ashish Kamat, Senior Advocate, Ms. Huzan Bhumgara ,
Mr. Areez Gazdar, Mr. Dhruv Dandekar, Ms. Letishiya
Chaturvedi i/b Veritas Legal, for the Petitioner.
Mr. Girish Godbole, Senior Advocate, Mr. Mandar Bangale,
Ms. Sarita Yadav, Ms. Pearl Pais, i/b Bangale &
Associates, for the Respondent No.1.
Mr. Vividh Tandon, i/b Mr. Mehul Thakkar, for Respondent
No.3.
Mr. Ojas Gole, for Respondent No.4 – Bank of India.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
CORAM :N. J. JAMADAR, J.
RESERVED ON :31
st
AUGUST 2026
PRONOUNCED ON :10
th
SEPTEMBER 2026
JUDGMENT:
1.Rule. Rule made returnable forthwith, and with the
consent of learned Counsel for the parties, heard �nally.
SAINATH, PA 2/23
WP--11194-26.DOC
2.By this petition, the petitioner takes exception to an order
dated 02
nd
July, 2026, passed by the Principal Judge, City Civil
Court, Mumbai in Miscellaneous Appeal No. 0100286/2026,
whereby while granting stay to the execution and operation of
the order passed by the Estate Of�cer (R-2) in case No.
EO/E/(135)(135-A)(135-B)/2013 under the provisions of the
Public Premises (Eviction of Unauthorized Occupants) Act ,
1971 (“PP Act, 1971”), the learned Principal Judge, City Civil
Court, directed the petitioner – appellant to deposit 20% of the
amount ordered to be paid by the Estate Of�cer (R-2) by way of
compensation for unlawful occupation of the inquiry premises.
3.Shorn of super�uities, the background facts necessary
for the determination of this petition, can be stated as under :-
3.1The Petitioner is an Asset Reconstruction Company
registered with the Reserve Bank of India under Section 3 of
the Securitization and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002 (“SARFAESI Act,
2002”).
3.2The Respondent No.1 is a Port Authority constituted
under Section 3 of the Major Port Authorities Act, 2021 (“Port
Act, 2021”). The Respondent No.1 is the owner of the land
SAINATH, PA 3/23
WP--11194-26.DOC
admeasuring 1,036.71 sq. mtrs. bearing C.S. No.10/384 of
Colaba Division, together with all buildings standing thereon
(“inquiry premises”).
3.3The Respondent No.3 is a Private Ltd. Company registered
under the Companies Act, 1956. The Respondent No.3 was
assigned leasehold rights in the inquiry premises by the
Respondent No.1 under a letter dated 04
th
September, 2006.
The Respondent No.3 obtained credit facilities from Respondent
No. 4 – Bank against the mortgage of the leasehold rights in
the inquiry premises.
3.4On 18
th
August, 2009, the petitioner acquired the said
debt together with security interest in the inquiry premises
from Respondent No.4 – Bank, under an assignment agreement
and a subsequent deed of recti�cation dated 02
nd
December,
2012. The petitioner claimed to have obtained the possession of
the inquiry premises on 06
th
August, 2012 by following the
procedure prescribed under SARFAESI Act, 2002.
3.5On 13
th
February, 2013, the Respondent No.1 instituted
an Eviction Petition before the Estate Of�cer (R-2). The
Respondent No.1,
inter alia, sought an amount of Rs.
8,07,02,917.27/- (Rupees Eight Crores Seven Lakhs Two
SAINATH, PA 4/23
WP--11194-26.DOC
Thousand Nine Hundred Seventeen and Twenty Seven Paise )
towards arrears of rent/compensation and service tax.
3.6During the pendency of the said eviction proceeding, the
Respondent No.1 purportedly introduced a new Scale of Rates
(SORs) of rent for the period 01
st
October, 2012 to 30
th
September, 2017; 01
st
October, 2017 to 30
th
September, 2022
and for the period 01
st
October, 2022 to 30
th
September, 2027.
Thereupon, an amendment was sought in the Eviction Pe tition
seeking enhanced arrears of rent/compensation.
3.7Eventually, by an order dated 09
th
June, 2026, the
Respondent No.2 passed an order for eviction of the
Respondent No.3, Respondent No.4 and the petitioner from the
inquiry premises under the provisions of Section 5(1) of the PP
Act, 1971. The Respondent No.2 also assessed the damages on
account of unauthorized occupation of the inquiry prem ises
and directed the respondents in the said
proceedings/petitioner and Respondent Nos.3 and 4 herein, to
pay an amount of Rs.275,78,61,569/- (Rupees Two Hundr ed
Seventy Five Crores Seventy Eight Lakhs Sixty One Thousand
Five Hundred and Sixty Nine) by invoking the powers contained
in Section 7(1)(2)(2A) of the PP Act, 1971.
SAINATH, PA 5/23
WP--11194-26.DOC
3.8Being aggrieved, the petitioner preferred an appeal before
the learned Principal Judge, City Civil Court, Mumbai. In the
said appeal, the petitioner �led an application for stay to the
execution and operation of the order passed by the Es tate
Of�cer (R-2). The learned Principal Judge, City Civil Court after
taking into account the fact that, the petitioner has been in the
occupation of the inquiry premises since more than 13 years
and
prima facie there was nothing to show that, the petitioner
was entitled to occupy the inquiry premises without payment of
any charges, granted stay to the execution and operation of the
order passed by the Estate Of�cer subject to deposit of 20% of
the amount of compensation granted by the Estate Of�cer (R-2)
within a period of 8 weeks.
3.9Being aggrieved by the imposition of the condition to
deposit 20% of the compensation awarded by the Estate Of�cer
which comes to Rs.55,15,72,313/- (Rupees Fifty Five Cro res
Fifteen Lakhs Seventy Two Thousand Three Hundred and
Thirteen), the petitioner has invoked the writ jurisdiction of
this Court.
4.I have heard Mr. Ashish Kamat, the learned Senior
Advocate for the petitioner, and Mr. Girish Godbole, the learned
SAINATH, PA 6/23
WP--11194-26.DOC
Senior Advocate for the Respondent No.1, at some length. The
learned Counsel for the parties took the Court through the
pleadings and the material on record including the various
orders passed by the Authorities under the SARFAESI A ct,
2002 and this Court in writ petitions preferred by the parties.
5.Mr. Ashish Kamat, the learned Senior Advocate for the
petitioner, submitted that, the impugned order suffers from the
vice of non-consideration of any of the grounds urged by the
petitioner while seeking stay to the execution and operation of
the order passed by the Estate Of�cer (R-2). The impugned
order, Mr. Kamat would urge, borders on an order sans reasons
and betrays non-application of mind. Secondly, the learned
Principal Judge did not properly appreciate the fact that there
was a complete failure of justice as the Estate Of�cer (R-2)
passed the �nal order without providing an effective
opportunity of hearing. The order passed by the Estate Of�cer,
thus suffers from patent legal in�rmity on account of breach of
the principles of natural justice and fundamental principles of
judicial process. Thirdly and most importantly, the very
substratum of the determination of compensation by the Estate
Of�cer (R-2) was dismantled with the Division Bench judgment
of this Court in the case of Arsheesh Jamshed Wadia & anr. vs.
SAINATH, PA 7/23
WP--11194-26.DOC
The Board of Mumbai Port Authority & ors.
1
, delivered on 25
th
August, 2026 as the new Scale of Rates (SORs) were quashed
and set aside by the Division Bench. Although the Division
Bench judgment was delivered subsequent to the passing of
the impugned order by the learned Principal Judge, yet, the
orders passed by both the Estate Of�cers and the learned
Principal Judge are rendered untenable as the principle of
consequential orders applies.
6.Mr. Kamat, took the Court through the history of the
proceedings in the matter of the determination of rent by the
Respondent No.1 and the decisions of this Court as well as the
Supreme Court holding that, the Respondent No.1 cann ot
resort to pro�teering like a private landlord.
7.Fourthly, Mr. Kamat would submit, the petitioner being a
secured creditor, it could not have been saddled with th e
liability to pay the rent and/or compensation at all or at least
for the period prior to the date, the petitioner came into
possession of the inquiry premises.
8.Lastly, Mr. Kamat would urge, the direction to deposit
20% of an exorbitant and fanciful compensation determined by
1 WP(O)/3143/2022
SAINATH, PA 8/23
WP--11194-26.DOC
the Estate Of�cer (R-2) is wholly onerous and unreasonable.
Such a condition frustrates the statutory right of app eal,
submitted Mr. Kamat.
9.To lend support to his submission that, it is not
peremptory that in every case where stay is granted to the
execution of a money decree, the condition of deposit b e
imposed, Mr. Kamat placed reliance on the judgment of th e
Supreme Court in the case of Lifestyle Equities C. V. & anr. Vs.
Amazon Technologies INC.
2
10.Per contra, Mr. Girish Godbole, the learned Senior
Advocate for the Respondent No.1, submitted that, in the
peculiar facts of the case, the direction to deposit 20% of the
compensation ordered to be paid by the Estate Of�cer (R-2)
cannot be said to be unreasonable. Laying emphasis on the fact
that, the petitioner has not paid any amount towards t he
rent/charges for the occupation of the inquiry premises, for
over 14 years, Mr. Godbole submitted that, it is not open for the
petitioner to urge that, being a secured creditor, the petitioner
cannot be directed to pay the rent/occupation charges. Mr.
Godbole submitted with a degree of vehemence that, the
2 (2026) 3 SCC 641
SAINATH, PA 9/23
WP--11194-26.DOC
petitioner went ahead with the acquisition of the debt and the
purported security interest in the inquiry premises despite a
clear and categorical condition in the letter of assignment of
leasehold rights that, the Respondent No.3 was not entitled to
mortgage the leasehold rights in the inquiry premises, without
prior written permission of the Respondent No.1.
11.Mr. Godbole, further urged that, in WP/502/2013, the
petitioner was put to notice that the Respondent No.1 had the
claims against the Respondent No.3. Thus, while disposing of
the said writ petition, the petitioner and Respondent No.4 –
Bank were directed to bring the notice of the prospec tive
auction purchaser of the property, the Respondent No .1’s
claims in respect thereof, the said writ petition, the order
passed therein and the proceedings under PP Act, 197 1
pending before the Estate of�cer (R-2). Yet the petitioner
brazenly continued to occupy the inquiry premises witho ut
paying any rent/occupation charges in clear breach of t he
terms subject to which the leasehold rights in inquiry premises
were assigned to the Respondent No.3. Thus, there ar e no
equities in favour of the petitioner.
SAINATH, PA 10/23
WP--11194-26.DOC
12.Mr. Godbole further submitted that, the Division Bench
judgment of this Court in the case of Arsheesh Jamshed Wadia
(supra), does not govern the assignment of the leasehold rights
in the inquiry premises, under the letter dated 04
th
September,
2006. The petitioner having acquired the purported security
interest in the inquiry premises with open eyes, cannot be
permitted to wriggle out of the liability to pay the
rent/occupation charges in accordance with the terms of the
contract.
13.I have given anxious consideration to the submissions
canvassed across the bar.
14.At the outset, it is necessary to note that the instant
petition assails a discretionary order granting stay to the
execution and operation of the eviction order passed by the
Estate Of�cer (R-2), during the pendency of the appeal
thereagainst. All the issues in regard to the legality, propriety
and correctness of the order passed by the Estate Of�cer (R-2),
impugned in the said appeal, are to be adjudicated by the
Appellate Authority. It would, therefore, be inadvisable to
trench upon the merits of the challenges to the order passed by
the Estate Of�cer (R-2), impugned before the Appellate
SAINATH, PA 11/23
WP--11194-26.DOC
Authority, as there is a clear risk of pre-judging the matter
before a decision is rendered by the Appellate Authorit y.
Therefore, this Court considers it expedient to con�ne
consideration in this petition to the justi�ability of the direction
to deposit of 20% of the compensation amount ordered to be
paid by the Estate of�cer (R-2) as a condition for the stay to the
execution and operation of the order passed by the Es tate
Of�cer (R-2).
15.First and foremost, the nature of the order impugned
before the Appellate Authority deserves to be noted. By the
said order, the Estate Of�cer has directed the eviction of the
Petitioner and Respondent Nos.3 and 4 invoking the pow er
under Section 5(1) of the PP Act, 1971. The Estate Of�cer has
assessed the damages in respect of the unauthorized
occupation of the inquiry premises and directed payment of
damages along with interest aggregating to Rs.275,78,61,569/-
under Section 7 of the PP Act, 1971.
16.The assessment of damages is at the heart of the
controversy. It is the case of the Petitioner that the damages
have been assessed taking into account the revised SOR s
SAINATH, PA 12/23
WP--11194-26.DOC
which have been quashed and set aside by the Division Bench
in the case of Arsheesh Jamshed Wadia (supra).
17.Before adverting to this contentious issue, it may be
apposite to note the initial terms of the assignment of leasehold
rights by Respondent No.1 in favour of Respondent No.3. Under
the letter dated 4 September 2006, the leasehold rights were
assigned in favour of Respondent No.3 for the residual period of
lease, expiring on 7 August 1932. The agreed rent wa s
Rs.6,64,147.53 p.m. with a stipulation for increase in rent by
4% p.a. The rent was to be subject to the decision of the Board
on the approach paper to deal with the gray areas in the
implementation of the Supreme Court judgment. Clause 20 of
the said letter provided for levy of interest @ 18% p.a., or at
such rate as may be revised by the Board of Trustees, on late
payment of monthly rent / compensation.
18.Evidently, the terms of assignment of leasehold rights as
to the term of assignment and the rent payable, were explicitly
clear. The submission of Mr. Kamat was that the cave at in
clause 3 of the said letter made it clear that, the Respondent
No.1 was also cognizant of the fact that the rent agreed to be
paid was subject to the implementation of the Supreme Court
SAINATH, PA 13/23
WP--11194-26.DOC
judgment in regard to the charge of rent by Respondent No.1.
Thus, the decision in the case of Arsheesh
Jamshed Wadia (supra), governs the initial �xation of rent for
the inquiry premises.
19.With this clarity on facts and the contours of dispute, it
is imperative to note that, the directions for deposit of rent even
at a rate higher than the contractual rate, as a condition for
the grant of stay to the execution and operation of decree for
eviction is a well recognized measure to balance equities, where
the possession of the person seeking protection from eviction is
declared to be unlawful and unauthorized.
20.In the case of Atma Ram Properties (P) Ltd. V/s. Federal
Motors (P) Ltd.
3
, on which reliance was placed by Mr. Godbole,
the Supreme Court, inter alia, enunciated that, while
exercising the jurisdiction under Order 41 Rule 5 of the Code of
Civil Procedure, 1908, the Appellate Court has the power to put
the tenant-appellant on terms. Though the right to �le an
appeal against the order of eviction is statutory, yet, the prayer
for grant of stay to the execution of the eviction decree is
required to be dealt with in exercise of equitable discretionary
3(2005) 1 SCC 705
SAINATH, PA 14/23
WP--11194-26.DOC
jurisdiction of the appellate Court. While ordering stay the
appellate Court has to be alive to the fact that it is depriving
the successful landlord of the fruits of the decree and is
postponing the execution of the order for eviction. There is
every justi�cation for the appellate Court to put the tenant-
appellant on terms and direct the appellant to compensate the
landlord by payment of a reasonable amount which is n ot
necessarily the same as the contractual rate of rent. However,
such terms shall be reasonable.
21.In the said case, the Supreme Court has culled out the
propositions, as under :
“19. To sum up, our conclusions are:-
(1) while passing an order of stay under Rule 5 of
Order 41 of the Code of Civil Procedure, 1908, the
appellate Court does have jurisdiction to put the
applicant on such reasonable terms as would in its
opinion reasonably compensate the decree-holder
for loss occasioned by delay in execution of decree
by the grant of stay order, in the event of the
appeal being dismissed and in so far as those
proceedings are concerned. Such terms, needless
to say, shall be reasonable;
(2) In case of premises governed by the provisions
of the Delhi Rent Control Act, 1958, in view of the
de�nition of tenant contained in clause (l) of
SAINATH, PA 15/23
WP--11194-26.DOC
Section 2 of the Act, the tenancy does not stand
terminated merely by its termination under the
general law; it terminates with the passing of the
decree for eviction. With effect from that date, the
tenant is liable to pay mesne pro�ts or
compensation for use and occupation of the
premises at the same rate at which the landlord
would have been able to let out the premises and
earn rent if the tenant would have vacated the
premises. The landlord is not bound by the
contractual rate of rent effective for the period
preceding the date of the decree…..”
22.A three-Judge Bench of the Supreme Court in the case of
State of Maharashtra and Anr. V/s. M/s. Super Max
International Pvt. Ltd. and Ors.
4
, af�rmed the aforesaid
conclusions in the case of Atma Ram Properties (P) Ltd.
(supra). The Supreme Court further clari�ed the position, as
under :
“46. In light of the discussions made above we
hold that in an appeal or revision preferred by a
tenant against a order or decree of an eviction
passed under the Rent Act, it is open to the
appellate or the revisional Court to stay the
execution of the order or the decree on terms,
including a direction to pay monthly rent at a rate
higher than the contractual rent. Needless to say
4
SAINATH, PA 16/23
WP--11194-26.DOC
that in �xing the amount subject to payment of
which the execution of the order/ decree is
stayed, the Court would exercise restraint and
would not �x any excessive, fanciful or punitive
amount.”
23.These decisions were followed by the Supreme Court in
the case of Sumer Corporation V/s. V�ay Anant Gangan
5
.
24.This Court is conscious of the fact that the aforesaid
decisions have been rendered in a situation where the
possession of the tenant was declared to have become unlawful
from the date of the passing of the decree of eviction. However,
the propositions that, the person who seeks stay to t he
execution of the decree for eviction is liable to pay the rent /
compensation for the unlawful occupation of the subject
premises and while �xing the amount of compensation for the
unlawful occupation to be paid as a condition for the stay to
the execution of the order/decree, the Appellate Court should
exercise restraint and would not �x excessive, fanciful or
punitive amount, apply with equal force in a situation of the
present nature. Lest, the statutory right of appeal would be
rendered illusory.
5AIR 2022 SC 5756
SAINATH, PA 17/23
WP--11194-26.DOC
25.In the case at hand, it is pertinent to note, it is nowhere
the claim of the Petitioner that, it has paid any rent o r
occupation charges since the date it entered into the
possession of the inquiry premises. The fact remains that
since 6 August 2012, the Petitioner has been in the occupation
of the inquiry premises without payment of any rent / charges
whatsoever. The liability to pay arrears of rent in accordance
with the contractual obligations of Respondent No.3 – debtor,
before the Petitioner obtained the possession of the inquiry
premises in the capacity of the secured creditor may be
debated. Whether the Petitioner is liable to pay those arrears
of rent and charges, etc., can be said to be a matter to be
decided by the Appellate Authority in the pending appeal.
However, the Petitioner can hardly dispute the liability to pay
the rent / charges for the occupation of the inquiry premises at
least since the date it came in possession thereof.
26.It cannot be ignored that, what was acquired by the
Petitioner was the security interest in the nature of leasehold
rights in the inquiry premises. Thus, the Respondent No.1 can
under no circumstances be deprived of the right to recover the
rent / occupation charges in respect of the inquiry premises, of
SAINATH, PA 18/23
WP--11194-26.DOC
which the Respondent No.1 is indubitably the owner.
27.At this stage, it is necessary to note that, initially the
claim of the Respondent No.1 before the Estate Of�cer was
con�ned to the arrears of rent / charges for the period 4
December 2006 to 30 September 2012, aggregating to
Rs.8,07,02,917.27/-. Incontrovertibly, during the pendency of
the eviction proceedings, Respondent No.1 amended the claim
so as to recover the arrears of rent / charges as per the revised
scale of rates.
28.In this proceeding, having regard to the limited nature of
the controversy, this Court is not inclined to delve deep into the
implications of the judgment of the Division Bench in the case
of Arsheesh Jamshed Wadia (supra), on the claim of
Respondent No.1 for the arrears of rent / charges as the appeal
before the Appellate Authority is yet to be heard. Suf�ce to note
that, the Division Bench quashed and set aside the Noti�cation
dated 29 October 2021 �xing the scale of rates for the period 1
October 2012 to 30 September 2017 and the Noti�cation dated
18 December 2021 �xing the scale of rates from 1 February
2017 to 30 September 2022 as those Noti�cations overreached
the compromise proposals and the decision of the Supre me
SAINATH, PA 19/23
WP--11194-26.DOC
Court and also on the ground that the scale of rates were
revised with retrospective effect.
29.Prima facie, this Court �nds substance in the submission
of Mr. Kamat that the determination of the damages by the
Estate Of�cer (R2) draws support and sustenance from the
revised scale of rates, which the Division Bench has quashed
and set aside. Therefore, the direction for the deposit of the
amount equivalent to 20% of the compensation awarded by the
Estate Of�cer (R2) as a condition for stay to the execution and
operation of the order passed by the Estate Of�cer (R2), as a
measure of balancing equities, may not be sustainable as the
edi�ce of the determination of the compensation becomes
tenuous.
30.Conversely, this Court is not inclined to accede to the
submission on behalf of the Petitioner that the Petitioner does
not bear any liability to pay rent/occupation charges.
Incontrovertibly, the Petitioner is in the occupation fo the
inquiry premises since 6 August 2012. In the least, the
Petitioner would be required to pay rent/charges for th e
occupation of the inquiry premises at the contractual rate with
an increase of 4% p.a.
SAINATH, PA 20/23
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31.Whether the very �xation of the contractual rate of rent is
affected by the Division Bench decision in the case of Arsheesh
Jamshed Wadia (supra), is a matter which may be required to
be adjudicated upon by the Appellate Authority. It would be
inadvisable for this Court to embark upon an inquiry on this
aspect while the appeal awaits adjudication.
32.Nonetheless, even on conservative basis, in the
considered view of this Court, the Petitioner cannot escape the
liability to pay rent/occupation charges at the contractual rate
from 6 August 2012, subject to the �nal order that may be
passed by the Appellate Authority.
33.For the foregoing reasons, this Court is inclined to
interfere with the impugned order and modify the quantum of
the amount to be deposited by the Petitioner as a condition for
grant of stay to the execution and operation of the order passed
by the Estate Of�cer (R2). A condition to deposit the amount
equivalent to the rent �xed and payable under the letter dated
4 September 2006 by which leasehold rights were assigned to
Respondent No.3, from the date the petitioner has been in the
occupation of the inquiry premises upto this month, but
SAINATH, PA 21/23
WP--11194-26.DOC
without interest, would balance the equities between the
parties.
34.Hence, the following order :-
: : O R D E R : :
(i) The Writ Petition stands party allowed.
(ii) The impugned order stands modi�ed as under:
(a) The effect, operation and execution of the order
passed by the Estate Of�cer (R2) in Case No.
EO/E/(135)(135-A)(135-B)/2013 shall remain stayed
until further orders by the Appellate Authority
subject to the Petitioner-Appellant depositing an
amount towards compensation at the rate of rent
�xed under the letter dated 04
th
September, 2006, as
it obtained on 6
th
August 2012, alongwith 4% annual
increase in the rent, from 6
th
August 2012 till 5
th
September 2026 (i.e. for 14 years and one month) in
the Court of learned Principal Judge, City Civil
Court, Mumbai, within a period of four weeks from
today.
(b) It is clari�ed that the observations were
con�ned to determine the justi�ability of condition to
SAINATH, PA 22/23
WP--11194-26.DOC
deposit the amount and the learned Principal Judge,
City Civil Court shall decide the Appeal on its own
merits and in accordance with law without being
in�uenced by any of the observations in the
impugned order.
(c) Rule made absolute to the aforesaid extent.
No costs.
[N. J. JAMADAR, J.]
SAINATH, PA 23/23
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