1988 (11) TMI 322 - SC - Companies Law

Whether the company could be held to be a tenant of the flat is concerned? Whether, after the written agreement of licence in favour of the company has expired, it could be said that the company was a licensee of the said flat. Held that - Appeal dismissed. Both the aforesaid questions are left open to be decided by a court of competent jurisdiction. We may, however, point out that if there are any observations in the judgment of the High Court to the effect that, after a written agreement of licence comes to an end, there cannot be an implied licence, they may not be taken as laying down the correct law.

Summary

The Supreme Court dismissed the appeal against the High Court's decision, stating that the Magistrate's Court did not have jurisdiction to decide complex civil law questions regarding a company's tenancy of a flat under the Bombay Rents Act. The court emphasized that these issues should be resolved by a civil court and not a Magistrate's Court under section 630 of the Companies Act.