Summary
The Esso Eastern Inc., a Company Organised and existing under U. S. Laws was engaged in the business of distributing and marketing petroleum products manufactured by Esso Standard Refining Co. of India Ltd. and Lube India Ltd. and had established places of business in India. In order to provide residential accommodation to its employees the Co. had taken on leave and licence basis, Flat No. 35 in Block No. X in the Housing Colony known as Shyam Niwas situate at Warden Road now called Bhulabhai Desai Road, Bombay, for a period of one year in terms of the agreement in writing dt.
28th Nov., 1968 from one Smt. Nanki M. Malkani, a member of the Co-operative Society. On 4th Dec., 1968 Respondent No. 1 Shyam Cooperative Housing Society Ltd. passed a resolution admitting Petitioner No. 2 T.J. Mansuknani an employee of the Co. as a nominal member of the Society though he was not the licencee. The period of lease was initially renewed at the instance of the licensor for one year. On 29th Nov., 1971, Ms. Malkani wrote a letter to the Company saying that the agreement for lease and licence was due to expire on that date; hence the period of licence be renewed yearly, from time to time for 3 years on the expiry of each term of the licence. On this basis the lease period stood extended till Nov. 30, 1973. In the meanwbile the State of Maharashtra enacted Act 17 of 1973. Since the Esso Standard Inc. was in fact in occupation of the flat in question as on 1st Feb., 1973, it acquired the status of a tenant underPG NO 44PG NO 45 section 15A of the Act.On 13th March, 1974, the Esso (Acquisition of Undertakings in India) Act, 1974 came into force and from that date by virtue of subsection (1) of section 5 of the Act, the Central Govt. was deemed to be the tenant of the flat in question.By a letter of 9th April, 1975, sent by Ms. Malkani Res.2, to the Petr. she affirmed the terms and conditions of the licence and by her subsequent communications she informed that the Petr. who is successor-in-interest of Esso Eastern Inc. to whom she had given the flat continues in possession on the same terms and conditions of the lease.On 11th Sept., 1980, the Society passed a resolution calling upon the Petr.--Corporation to vacate the premises and asked Ms. Malkani, Res. 2 for occupying the flat herself. Upon the Petitioner's failure to vacate the premises the Society on September 15, 1986 filed an application under section 91(1) of the Maharashtra Co- operative Society Act 1960 before the 3rd Co-operative Court Bombay, for eviction of the petitioner and its employee. On January 1981, Petitioner No. 1 permitted its another employee to occupy the flat. The 3rd Cooperative Court after considering evidence led by the parties, dismissed the claim of the Society holding inter alia that Esso Eastern Inc. was in occupation of the flat in dispute under a subsisting licence as on Feb. 1, 1973 and thus got the protection available to a licencee under sec. 15A of the Bombay Rent Act and that the said protection could not be taken away merely by the Society making a claim for eviction u/s 91 [1]of the Act.The Society being aggrieved appealed to the Maharashtra State- Co-operative Appellate Court. The appellate Court took the view that leave and licence agreement confers only a personal right to occupy; that right cannot be transferred nor inherited by the Hindustan Petroleum Corpn., being successor-in-interest of Esso Eastern Inc. In that view of the matter the appellate Cooperative Court held that the Petitioner Corpn. cannot be said to have taken over the right vt Esso Eastern Inc. to occupy the flat under the leave and licence agreement. Accordingly it allowed the appeal filed by the Society and decreed the claim of the Society and directed the Petr. Hindustan Petroleum Corpn. to vacate the premises in question and further directed Res. 2, Ms. Malkani to herself occupy the flat.The Petitioner thereupon filed a Writ Petition under Article 226 of the Constitution for quashing the judgmentPG NO 46 and order passed by the Maharashtra State Co-operative Appellate Court. The said Writ Petition was withdrawn to this Court under Article 139A of the Constitution.In the Writ Petition 3 questions have been raised viz (1) Whether the Hindustan Petroleum Corporation Ltd. being a Successor-in-interest of the Esso Eastern Inc. the licensee, was entitled to the protection of S. 15A of the Bombay Rents, Hotels and Lodging House Rates Control Act, 1947, (Maharashtra Act 17 of 1973) having regard to the fact that Esso Eastern Inc. was in occupation of the flat in dispute under a subsisting licence as existing on 1st February, 1973?(2) Whether the Maharashtra State Co-operative Appellate Court was justified in holding that the licence being purely personal and upon acquisition of the Esso Eastern Inc. by the Central Government under the Esso (Acquisition of Undertakings in India) Act 1974 the agreement for leave and licence as existing on the appointed day i.e. D 13th March, 1974 under section 2(a) of that Act, stood extinguished and therefrom the right acquired by Esso Eastern Inc. under section 15A of the Bombay Rent Act of being a protected tenant in relation to the flat in question, could not be transferred to, or be vested in the Central Government under section 3 of the Acquisition Act. Further was it also justified in holding that although the Esso Eastern Inc. was deemed to be a tenant of the disputed flat under section 15A of the Bombay Rent Act, the Central Government could not be deemed to have become the tenant thereof under Sub-s. (1) of S. 5 of the Acquisition Act merely because prior to the enactment of s. 15A of the Bombay Rent Act the premises were held by Esso Eastern Inc. on an agreement of leave and licence? (3) Whether a claim for ejectment of an occupant of a flat in a cooperative housing society having been let into possession of the premises under an agreement for leave and licence executed between it and a member of the Society, by virtue of its employer having became a nominee member thereof is a "dispute touching the business of the Society"within the meaning of s. 91(1) of the Act?Allowing the Petition (which stood transferred from the High Court to this Court) the Court,HELD: Petitioner No. I--Hindustan Petroleum Corporation Ltd. is clearly protected under section 15A of the Bombay Rents, Hotel and Lodging House Rates Control Act 1947. [47G- 1{; 48A]PG NO 47 That Act came into force on March 15, 1974 and in the meanwhile, the licencee Esso Eastern Inc. had already acquired the status of deemed tenant under section 15A of the Bombay Rent Act as admittedly, there was a subsisting licence as on 1st February, 1973. The appellate Court has also failed to appreciate that the name of the Esso Standard Refining Co. of India Ltd. was changed to Esso Eastern Inc. by a certificate of Amendment dated December 22, 1970 vide a Resolution passed by the Board of Directors of the Corporation on 15th December, 1970. [58D-E]The appellate Court was clearly in error in not appreciating that under s. 3 of the Acquisition Act, the right, title and interest of Esso Eastern Inc. in relation to its undertakings in India, shall stand transferred to, and shall vest in the Central Government as from the appointed day i. e. as from 13th March, 1974. Under Sub-s.(1) of S. 5, thereof, the Central Government became the lessee or tenant, as the case may be. By sub-s. (2) thereof, on the expiry of the term of any lease or tenancy referred to in sub-s. (1) lease or tenancy, shall, if so desired by the Central Government, be renewed on the same terms and conditions on which the lease or tenancy was held by Esso immediately before the appointed day. [158F, 59A]O.N. Bhatnagar v. Smt. Rukibai Narsingdas & Ors., [1982]3 S.C.R. 681, referred to.See the full content of this document
Extract
Hindustan Petroleum Corporation Ltd. & Anr. VS. Shyam Co Operative Housing Society & Ors.
PETITIONER: HINDUSTAN PETROLEUM CORPORATION LTD. & ANR.Vs.RESPONDENT: SHYAM CO OPERATIVE HOUSING SOCIETY & ORS.DATE OF JUDGMENT19/09/1988BENCH: SEN, A.P. (J)BENCH: SEN, A.P. (J)RAY, B.C. (J)CITATION: 1989 AIR 295 1988 SCR Supl. (3) 44 1988 SCC (4) 747 JT 1988 (3) 716 1988 SCALE (2)804CITATOR INFO : E&R 1990 SC1563 (16)ACT: Constitution of India--Arts. 226/139-A--Sections 15A and 2 Maharastra Act 17 of 1975--Came into force on March 15, 1974-Subsisting Iicensee on Feb. 1, 1973--Person in occupation acquires status of deemed tenant-Entitled to protection u/s. 15A of the Act.%Esso (Acquisition of Undertakings in India) Act 1974/Lube India Ltd., Esso Standard Refining Company of India Ltd. Amalgamation order 1974.Sections 3. 5 and 19--Esso Standard Refining Co,, taken over by Hindustan Petroleum Corporation Ltd.--Subsisting Licence in existence as on Feb. 1, 1973--Held Hindustan Petroleum Corpn. Ltd. entitled to statutory protection u/s.15A of the Bombay Rent Act.JUDGMENT: ORIGINAL JURISDICTION: Transferred Case No.7 of 1987 InTransfer Petition No. 390 of 1986.Dr. Y.S Chitale, T .U. Mehta and R.P. Kapur for the Petitioners N.N. Keshwani, R.N. Keshwani, Ms. Madhu Moolchandani and K. Rajendra Chodhary for the Respondents.The Judgment of the Court was delivered bySEN, J. The principal question in controversy in this petition under Art. 226 of the Constitution filed by the Hindustan Petrole...
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