Bombay High Court

Inductees in structures on leased open land are mere licensees and must vacate upon lease termination.

DARRYL D MONTE (SINCE DECEASED) THR. LRS. ZARINE DMONTE AND ORS. vs VADILAL KUNVERJI GADA AND ORS.

Bombay High CourtJUDGMENT: April 06, 20263 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Applicants (landowners) leased an open plot in Bandra to Moogatlal Bhat via three successive indentures (1934, 1949, and 1959).

Source reference: para. 5, 31-34

The 1959 Indenture was executed after Moogatlal’s death; while 15 heirs surrendered previous rights, the new lease was granted only to three joint tenants (Parvatishankar, Madhusudan, and Vijaykumar) for 20 years.

Source reference: para. 5, 31-34

The lease required the tenants to remove all structures and return vacant land upon expiry.

Source reference: para. 30, 36

Moogatlal had constructed three "Galas" (shops) and inducted Respondent Nos. 1–6 (obstructionists) as occupants.

Source reference: para. 3, 67

After the lease expired in 1979, the tenants remained as protected tenants until the Maharashtra Rent Control Act, 1999 removed protection for open land.

Source reference: para. 6, 8

The Applicants filed an ejectment suit (T.E. R. Suit No. 66 of 2002).

Source reference: para. 8, 39

Vijaykumar was the last surviving tenant, and his heirs (Defendants 8–11) entered into a consent decree in 2006 to surrender possession.

Source reference: para. 38, 41

During execution, Respondent Nos. 1–6 obstructed, claiming independent sub-tenancy rights.

Source reference: para. 2, 9

The Trial Court allowed the Applicants' Obstructionist Notice, but the Appellate Bench reversed it, holding the decree was "incomplete" as only some heirs surrendered and finding the obstructionists were lawful sub-tenants.

Source reference: para. 1, 11, 44, 58
02

Issues

1. Whether the consent decree for ejectment was valid and executable against the obstructionists despite not involving all original 15 heirs of the first lessee.

Source reference: para. 29, 42

2. Whether the obstructionists (occupants of structures built by the lessee) established an independent right, title, or interest (lawful sub-tenancy) to resist execution of the decree for vacant land.

Source reference: para. 29, 48, 61
03

Law Applied

The court applied Order XXI Rules 97 and 101 of the CPC, which mandate that the Executing Court adjudicate all questions of right, title, or interest relevant to an obstructionist notice.

Source reference: para. 48-50

It relied on the "Doctrine of Dual Ownership," distinguishing ownership of land from ownership of structures built by a lessee.

Source reference: para. 15

The court followed Jamnadas Dharamdas v. Dr. J. Joseph Farreira (1980) 3 SCC 569, which held that a landlord of open land is entitled to vacant possession without structures upon lease termination.

Source reference: para. 62, 74

It further applied Sanjay Ramchandra Parab v. Ashok D. Bhuta (CRA 409/2023), establishing that third parties inducted by a lessee into structures on leased land are mere licensees vis-à-vis the landowner and do not enjoy protection under the Rent Act once the head-lease is terminated.

Source reference: para. 15, 62, 69
04

Reasoning

The High Court found the Appellate Bench’s judgment "perverse" and based on a fundamental misreading of the 1959 Indenture.

Source reference: para. 45

The Appellate Bench erroneously assumed 15 joint tenants existed; however, the deed clearly stated that 12 heirs surrendered rights, leaving only three joint tenants, with Vijaykumar being the last survivor.

Source reference: para. 31, 45

Thus, the consent decree signed by Vijaykumar’s heirs was valid and complete.

Source reference: para. 41, 76

On the issue of independent rights, the court noted there was no privity of contract between the landowners and the obstructionists.

Source reference: para. 43, 70

Applying the dual ownership principle, the court held that since the lease was for open land with a specific covenant to remove structures, the obstructionists (inducted by the lessee) were merely licensees of the lessee.

Source reference: para. 63, 67-69

Their right to occupy the structures was co-terminus with the lessee’s right to the land.

Source reference: para. 70

Consequently, the obstructionists could not claim protection under Sections 15 or 15A of the Bombay Rent Act because they were not sub-tenants of the "premises" (the land) let by the owner.

Source reference: para. 67, 69
05

Holding

The High Court allowed the Revision Applications, set aside the Appellate Bench's order dated May 4, 2022, and restored the Trial Court's order dated November 3, 2018.

The court held that the consent decree was validly passed against the last surviving tenants and was fully executable.

Source reference: para. 76

It directed the removal of Respondent Nos. 1–6 (obstructionists) from Gala Nos. 1, 2, and 3 and ordered them to handover vacant possession of the suit plot to the Applicants.

Source reference: para. 1, 77

A request for a stay on the judgment was rejected.

Source reference: para. 79
Bombay High Court

Original Court PDF

DARRYL D MONTE (SINCE DECEASED) THR. LRS. ZARINE DMONTE AND ORS.vsVADILAL KUNVERJI GADA AND ORS.

Bombay High Court · April 06, 2026

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