M/S. ASHOK CATERERSversusMUNICIPAL CORPORATION OF GREATER BOMBAY (BEST UNDERTAKING)

                        MIS. ASHOK CATERERS                                  A
                                 v.
      MUNICIPAL CORPORATION OF GREATER BOMBAY
                 (BEST UNDERTAKING)

                            FEBRUARY, 19, 1997
                                                                             B
         (K. RAMASWAMY AND S. SAGHIR AHMAD, JJ.)

      Rent and Eviction :

      Bombay Municipal CorporationAct, 1888:                                 c
       S. 105-B(1}--'Unauthorised occupant'-Eviction of-Appellant given ·
the premises on lease 011 monthly basis f<?r five years-Lease expired by efflux
of time-Also tenancy determined-Eviction order against appellant
passed-Appellant challenged the eviction on the ground that it could not be
treated as an unauthorised occupant and as such the respondent-Corporation D
could not resort to summary remedy u/s. 105-B(l)-fleld, unauthorised oc-
cupation includes continuance in occupation by a person after the authority
under which he occupied the premises has "expired" or it has been "duly
detennined"-After expiry of lease period under the contract or its detemiina-
tion, the quandrum tenant becomes unauthorised occupant-Authorities can- E
not arbitrarily detennine the right and interest created in the person in lawful
possession except either for a public purpose or for contravention of condi-
tions of contract or for violation of statutory provisions--Corporation pleaded
that it needed the premises for expansion of the existing bus stop-In the
circumstances detennination of lease and initiatingsummary proceedings u/s.
105-B(l) is clearly in consonance with the provisions of the Act-High Court F
has not committed any e"or of law in holding the appellant an unauthorised
occupant.

      Prakash Warehousing Co. v. Municipal Corporation of Greater Bombay
& Anr., (1991) 2   sec 304, referred to                                      G

     CIVIL APPELLATE JURISDICTION: Special Leave Petition (C)
No. 3659 of 1997.

     From the Judgment and Order dated 15.1.97 of the Bombay High
Court in W.P. No. 6276 of 1996.                                   .H
                                    201
    202                  :,UPREME COURT REPORTS                 (1997] 2 S.C.R. ·

A         Bhimrao Naik, Shakeel Ahmed and Safia Khan for the Petitioner.

          The following Order of the Court was delivered :

         This special leave petition arises from the judgment and order dated
B   January 15, 1997 passed by the learned Single Judge of the Bombay High
    Court in W.P. No. 6276 of 1996.

        The petitioner had a lease on monthly basis and the respondent had
  offered it for five years though the petitioner had not accepted the same.
  Subsequently, as found by the courts below, the lease expired in January
C 1990 by afflux of time. However, the tenancy was determined by order
  dated December 24, 1994. Thereafter, summary proceedings were initiated
  under Section 105-B(l) of the Bombay Municipal Corporation Act (for
                                                                                    -
  short, the "Act") and eviction order was passed. The petitioner filed an
  appeal before the civil court which by order dated 5th December, 1996
D affirmed the eviction order. Feeling aggrieved, the petitioner filed the writ
  petition which has come to be dismissed by the High Court. Thus this
  special leave petition.

        Shri Bhimrao Naik, learned senior counsel for the petitioner placing
  reliance on a decision of this Court in Prakash Warehousing Co. v.
E Municipal Corporation of Greater Bombay & Anr., (1991] 2 SCC 304,
  contends that the respondents has no power to unilaterally terminate the
  tenancy, after the expiry of the period of lease, unless any of the grounds
  is made out either in terms of the contract or under the statute for ejecting
  the petitioner. In the light of the law laid down in the said decision, the
                                                                                    -
F eviction order is illegal. The petitioner cannot be treated as an un-
  authorised occupant and the respondent could not avail of the summerty
  remedy under Section 105-B(l) of the Act. We find no force in the
  contention of Shri Naik. It is seen that the renewal made in 1985 expired
  in 1990. He placed before us a copy of the lease. Adnlittedly, it does not
  prescribe any particular period of lease but it mentions words "from month
G to month". In other words, it is a tenancy on monthly basis. Correspondence
  appears to have taken place between the parties on the fixation of the
  period of the lease which ultimately did not bear fruit. Be that as it may,
  the question is : whether the petitioner can be treated as "unauthorised
  occupant" within the meaning of Section 105-B (l)(b) of the Act which
H reads as under :
         ASHOKCATERERSv. MUN.CORPN.OFGREATERBOMBAY                           203

            "105-B(l) where the Commissioner is satisfied -                        A

            (b) that any person is in unauthorised occupation of any corpora-
            tion premises :

            the Commissioner may not withstanding anything contained in any
            law for the time being in force, by notice (served by post, or by      B
            affixing a copy of it on the outer door or some. other conspicuous
            part of such premises, in such other manner as may be provided
            for by regulations), order that person, as well as any other person
            who may be in occupation of the whole or any part of the premises


-           shall vacate them within one month of the date of the service of
            the notice."

           This definition shows that occupation of Corporation premises
    without authority for such occupation is an unauthorised occupation. Such
                                                                                   C




    occupation includes continuance in occupation by a person after the
    authority under which he occupied the premises. has "expired" or it has D
    been "duly determined". The definition thus includes not only a trespasser
    whose initial and continued occupation has never been under any valid
    authority, but it also includes in equal measure a person whose occupation
    at its commencement was under authority, but such authority has since
    expired, or, has been duly determined - which means validly determined. E
    The expiry of authority to occupy occurs by reason of the terms or
    conditions of occupation. On the other hand, the determination of
    authority to occupy to be due or valid must be founded on one of the
    grounds specified by the statute. Any order of eviction on the ground of
    either "expiry" or "due determination" has to be made in accordance with


-   the procedure prescribed by the statute.

           In Prakash Warehousing Co. case (supra) relied upoh by the learned
    counsel, unfortunately, attention of the Court was not drawn to the 11011
    obsta11te clause in the main part of Section 105-B(l) while it was required
                                                                               F




    to consider the question whether the person in occupation of the premises
    after the expiry of the period of the lease or its determination could be G
    treated as "unauthorised occupant". It is true that under the Transfer of

-   Property Act or the Rent Act, the contractual or statutory tenancy is
    required to be determined for non-compliance of any of the conditions of.
    the contract or the statute en.Visaged thereunder. But the 11011 obstante
    clause contained in the main part of Section 105-B(l) takes out the wind H
                                                                         I
    204                   SUPREME COURT REPORTS                   (1997) 2 S.C.R.

A from the sail of the rigour of the law and enables the Corporation-respon-
    dent to terminate the tenancy and take back possession. After the expiry
    of the lease period under the contract or its determination, the quandrum
    tenant becomes unauthorised occupant. It is also true that the authorities
    cannot arbitrarily determine the right or interest created in the person in
    lawful possession of the public property except either for public purpose
B   or for contravention of the conditions of the contract or for violation of the
    statutory provisions. The lease, unlike licence, creates interest in immov-
    able property which could be put an end to by determination in accordance
    with law or contract. In this case, it is pleaded that the Corporation needs
    the premises for expansion of the existing bus stand. Under those cir-
C   cumstances, the determination of the lease · and initiating summary
    proceedings under Section 105-B{l) of the Act is clearly in consonance
    with the provisions of the Act. Accordingly, we hold that the High Court
    has not committed any error of law in coming to the conclusion that the
     petitioner is an unauthorised occupant.
D         The special leave petition is accordingly dismissed. Six month's time
    is granted to the petitioner to vacate and hand over possession of the
    premises subject to its filing the usual undertaking within four weeks from
    today.

    R.P.                                                      Petition dismissed.