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1996 (7) TMI 571

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..... the parties because of the reasonable stand taken by both the sides. We assume that we too have been spared likewise and the parties continue to be reasonable. It so happens that there is a building known as Great Social Building situate at 60, Sir P.M. Road, Fort, Bombay, which once belonged to the Great Social Life Insurance Co. Ltd. It appears that M/s. Interseas Corporation had taken on rent the fourth floor of the said building sometime in the year 1944. A portion carved out therefrom by a wooden partition was apparently sublet by M/s. Interseas Corporation to the appellant M/s. Shangrila Food Products Ltd. in July 1951. It also appears that M/s. S.M. Enterprises also became sublessees of M/s. Interseas Corporation of another portion .....

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..... ppeals were preferred by the appellant Company as well as the original tenant before the Principal Bench, City Civil Court, Bombay. The appellate Court upheld the order of eviction but reversed the order relating to damages, coming to the conclusion that there was no evidence in support of the order. The said order of eviction was thus challenged by the appellant Company before the High Court of Bombay. But the respondent-Life Insurance Corporation of India, did not choose to file any Writ Petition challenging those orders whereby its claim for damages had been negatived by the appellate Court. The learned Single Judge of the High Court examined the files relating to the case and entertained the belief that the Estate Officer had not dea .....

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..... ncy, in the facts and circumstances of the case, the interest of justice also require that the Corporation as a public body should get an opportunity to press its claim for tne damages, in the event prove that the petitioners were unlawful subtenants and therefore in unauthorised occupation of public premises. ( emphasis ours) As a result, both the orders of the Estate Officer dated 17-3-1992 passed in Cases No.187/187-A of 1991 in proceedings under Section 5 and 7 of the Act and the appellate order of the Principal Judge, City Civil Court, Bombay, in Miscellaneous Appeal No.85 of 1992 were quashed in putting the matter back on the file of the Estate Officer, to be dealt with in accordance with law. It was made clear that the ord .....

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..... ssment of damages as may be prescribed as also to assess damages on account of use and occupation of such premises. It is thus plain and clear that unless the occupant is first adjudged as an unauthorised occupant, his liability to pay damages does not arise. In other words, if he is an authorised occupant, he may be required to pay rent but not damages. The quality of occupation and the quality of recompense for the use and occupation of the public premises go hand in hand and are inter-dependent. Such is the scheme of the Act. The inherent temper of restraint of the High Court under Article 226 of the Constitution was posed and pressed into service by learned counsel for the appellants contending that the High Court should not have ope .....

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..... claim to damages and their ascertainment would only arise in the event of the Life Insurance Corporation, respondent, succeeding to prove that the appellant Company was an unlawful sub-tenant and therefore in unauthorised occupation of public premises. If the finding were to go in favour of the appellant Company and it is proved to be a lawful sub-tenant and hence not an unauthorised occupant, the direction to adjudge the claim for damages would be rendered sterile and otiose. It is only in the event of the appellant Company being held to be an unlawful sub-tenant and hence an unauthorised occupant that the claim for damages would be determinable. We see therefore no fault in the High Court adopting such course in order to balance the equi .....

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