SC dismisses Dunlop's plea against eviction

New Delhi (PTI): The Supreme Court has dismissed Dunlop India's plea challenging its eviction from a property occupied by it since 1972 at a prime locality in Mumbai.
The bench headed by Justice B N Agarwal upheld the Bombay High Court order, which asked the company to vacate the flat and pay mesne profits to the owners. Mesne profits are sums of money paid for the occupation of land without permission.
The Court of Small Cause had also held that Dunlop was attempting to avoid eviction from the valuable flat admeasuring about 1,700 sq ft situated at Khar Road, Mumbai.
Tyre maker Dunlop India had contended that the premises was occupied by it as an irrevocable licensee and not as monthly tenants and it had become the owner of the premises by adverse possession as it had completed more than 15 years from the date of expiry of lease.
It further said it was a sick company under the Sick Industrial Company (Special Provisions) Act, 1985 and it does not have a paid-up capital of more than Rs one crore.
The public limited company had challenged the eviction notice issued in September 2001 on the ground that the provision of the Maharashtra Rent Control Act 1999 cannot be implemented retrospectively since there was no provision in the Act to do so. Dunlop said in its petition that its vested right under the 1947 Act cannot be taken away by a subsequent legislation.
Senior citizens Nandiram Tahilram Mulchandani and others had moved the Court of Small Cause seeking recovery of the premises and mesne profits.
The flat was rented out to Dunlop in September 1972 for two years with an option of renewal for a further period of one year at the monthly rent of Rs 1,500. However, the owners had terminated Dunlop's tenancy in 2001.
THE HINDU; Thursday, March 27, 2008