1949 (1) TMI 7 - HC - Indian Laws

Summary

Issues Involved:
1. Jurisdiction of the High Court to entertain ejectment suits.
2. Ownership of the premises under the lease agreement.
3. Applicability of the Bombay Rents, Hotels and Lodging House Rates Control Act, 1947.
4. Interpretation of the lease agreement and the lease.
5. Concept of dual ownership in relation to property.

Issue-wise Detailed Analysis:

1. Jurisdiction of the High Court to Entertain Ejectment Suits:
The High Court determined that it lacked jurisdiction to entertain or try ejectment suits between a landlord and a tenant to which the provisions of the Bombay Rents, Hotels and Lodging House Rates Control Act, 1947, apply. Such suits are exclusively triable under that Act in Greater Bombay by the Court of Small Causes. This was based on the defendants' contention and an order by Bhagwati J to try this as a preliminary issue.

2. Ownership of the Premises Under the Lease Agreement:
The central question was whether the suits related to premises belonging to a local authority, specifically the Trustees of the Port of Bombay. The Court noted that under Section 108(h) of the Transfer of Property Act, a lessee may remove all things attached to the earth, including structures or buildings put up by him, even after the determination of the lease. Thus, the lessee is the owner of the building put up by him, although the land belongs to the lessor. This dual ownership was recognized by the Privy Council in Narayan Das v. Jatindra Nath.

3. Applicability of the Bombay Rents, Hotels and Lodging House Rates Control Act, 1947:
The Act does not apply to premises belonging to the Government or a local authority. However, it does apply to premises let to the Government or a local authority. The Court concluded that the premises in question did not belong to the Trustees of the Port of Bombay, as the building was erected by the lessee at his own expense and was not completed at the time of the lease grant.

4. Interpretation of the Lease Agreement and the Lease:
The lease agreement required the lessee to erect a building at his own expense and to use materials approved by the trustees. The lease granted on 30-1-1923 demised the land together with the building erected thereon. The Court found that the substantial nature of the transaction was a demise of the land by the trustees and a building put up by the lessee at his own expense. The provision that the building should be delivered to the trustees upon lease expiration did not affect the present ownership of the building.

5. Concept of Dual Ownership in Relation to Property:
The Court discussed the concept of dual ownership, where a building can be owned by one party and the land by another. This concept was supported by cases under the Merchant Shipping Act, 1894, which established that there may be dual ownership for a limited period. The Court applied this principle, concluding that during the lease period, the lessee had full dominion and control over the property, making him the owner of the building for that period.

Conclusion:
The High Court concluded that the premises in question did not belong to the Trustees of the Port of Bombay for the purposes of the Bombay Rents, Hotels and Lodging House Rates Control Act, 1947. Therefore, the Act applied, and the High Court had no jurisdiction to entertain or try the suits. The suits were dismissed with costs.