Jurisdictional Dispute under Section 24, Maharashtra Rent Control Act, 1999 Residential vs. Commercial Use – A Legal Tug-of-War


Summary of Judgement

The Bombay High Court addressed the jurisdictional issue under Section 24 of the Maharashtra Rent Control Act, 1999 (MRC Act), concerning eviction of a licensee. The court had to determine whether the premises were licensed for residential or commercial use, a key factor deciding the Competent Authority's jurisdiction.

1. Introduction and Core Issue:

The petitioner sought eviction of the respondent under Section 24 of the MRC Act, which allows eviction of a licensee only if the premises are for residential purposes. The respondent contended the premises were for commercial use, challenging the jurisdiction of the Competent Authority.

2. Background of Agreements:

  • A Leave and License Agreement dated April 27, 2017, specified residential use.
  • Subsequent agreements (2019-2021) continued this purpose.
  • The dispute arose with the final agreement (2021-2022), containing clauses suggesting commercial use.

3. Eviction Proceedings:

The Competent Authority ruled in favor of the petitioner, holding the premises were residential. However, the Revisional Authority overturned this decision, citing the agreement's commercial clauses.

4. Evidence and Disputes:

  • The petitioner provided documentary evidence of residential use.
  • Contrarily, the respondent argued multiple clauses in the final agreement indicated commercial use.

5. Legal Interpretation:

The court analyzed:

  • Section 24: Confers jurisdiction only for residential licenses.
  • Section 55: Tenant/licensee's contention prevails in the absence of a registered agreement unless disproved.

6. Key Observations:

  • Admissions by the respondent and her husband regarding residential use weakened the claim of commercial use.
  • Conflicting clauses in the agreement led the court to favor evidence of actual residential usage.

Acts and Sections Discussed:

  1. Section 24, Maharashtra Rent Control Act, 1999: Jurisdiction for residential license eviction.
  2. Section 30: Prohibition on converting residential premises for commercial purposes.
  3. Section 55: Tenant’s contention prevails in the absence of a registered agreement unless proven otherwise.

Ratio Decidendi:

The Competent Authority retains jurisdiction if sufficient evidence demonstrates the license was granted for residential purposes, even if unregistered agreements contain contradictory clauses suggesting commercial use.


Subjects:

Maharashtra Rent Control Act, Jurisdiction, Eviction Proceedings.

Residential License, Commercial License, Section 24, Legal Jurisdiction, Rent Control Act.

The Judgement

Case Title: Deepak S. Kavadiya Versus Additional Divisional Commissioner, Konkan Division and Ors.

Citation: 2024 LawText (BOM) (11) 121

Case Number: WRIT PETITION NO.14856 OF 2024

Date of Decision: 2024-11-12