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

Case Note & Summary

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: Section 24, Maharashtra Rent Control Act, 1999: Jurisdiction for residential license eviction. Section 30: Prohibition on converting residential premises for commercial purposes. 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.