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Rite Choice Trading Company v. Vikram Govind Rao
Summary of the Opinion — Civil Revision on Jurisdiction (Maharashtra Rent Control Act / Provincial Small Cause Courts Act)
Factual and Procedural Background
The petitioner is the original defendant No. 5; respondent No. 1 is the original plaintiff who brought a suit seeking multiple reliefs. The petitioner filed an application under section 9-A of the Code of Civil Procedure for framing a preliminary issue on jurisdiction. The trial Court framed and decided that preliminary issue and held that the Civil Court's jurisdiction was not barred in view of the provisions of the Maharashtra Rent Control Act. Aggrieved by that order, defendant No. 5 (the present petitioner) filed this Civil Revision Application challenging the trial Court's order.
Legal Issues Presented
- Whether the Civil Court has jurisdiction to try the suit or whether jurisdiction is barred by the Maharashtra Rent Control Act and/or the Provincial (Presidency) Small Cause Courts Act.
- Whether the substance of the plaint discloses a landlord–tenant dispute (within Rent Act or Small Cause Courts jurisdiction) or a dispute between partners of a firm over partnership asset/rights (within Civil Court jurisdiction).
- Whether a suit seeking what are claimed as "composite" or multiple reliefs (including reliefs said to fall under Rent Act jurisdiction) is maintainable before the Civil Court.
- Whether reliefs such as declaration and cancellation of registered instruments (alleged to be void/illegal) fall within the competence of the Civil Court or exclusively within the jurisdiction of courts under the Rent Act / Small Cause Courts Acts.
Arguments of the Parties
Petitioner's (Defendant No. 5) Arguments — Mr. Hingmire
- The prayers in the plaint can be considered and granted only by a court constituted under the Provincial Small Cause Courts Act or the Maharashtra Rent Control Act; the dispute is between lessor and lessee (landlord–tenant) and therefore outside Civil Court jurisdiction.
- The substance of the plaint shows the plaintiff has approached as a lessee; parts of the prayers relating to the lessor/lessee relationship cannot be tried by the Civil Court.
- The Civil Court could not deal with the Suit involving composite prayers; such a suit is not maintainable in Civil Court.
- Claiming relief both as to the instrument and status as lessee cannot be tried in the same suit before the Civil Court; where part of relief is outside the Civil Court's jurisdiction the suit is not tenable.
- Reading the plaint in toto shows the Civil Court lacks jurisdiction to try the suit; some reliefs fall within the exclusive jurisdiction of the Rent Court.
- The petitioner relied on several reported decisions (Govindbhai v. New Shorrock Mills; Marwadi Punamji Motiji v. Mohamad Siddique Musabhai Shaikh; Rafiuddin Nuruddin v. Abduyl Karim; Shantabai Y. Kothare v. Shankar P. Naik) to support these propositions.
Respondent's (Plaintiff) Arguments — Mr. Dhakephalkar
- All Civil Courts have jurisdiction unless expressly or impliedly barred; the reliefs sought (declaration/cancellation) cannot be granted by courts constituted under the Maharashtra Rent Control Act or Provincial Small Cause Courts Act, and therefore are within Civil Court competence.
- The dispute, taken in its totality, is essentially between partners of a firm (a dispute about firm rights and partner conduct), not a pure landlord–tenant dispute; reliefs are sought against partners and actions of partners, so the Rent Court's jurisdiction is not attracted.
- The respondent relied on authorities supportive of maintainability in Civil Courts where the dispute concerns partners or partner assets (Bochhraj Factories Pvt. Ltd. v. Smt. Damyanti; Madhavprasad v. Indirabai; P.V. Raheja v. L.I.C. of India; Inderjit Sohanlal Gulati v. M.P. Gulati).
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Govindbhai v. New Shorrock Mills, Nadiad, AIR 1984 Gujarat 182 | Cited for the proposition that where composite relief includes matters outside the Rent Act, the Civil Court may lack jurisdiction and a decree could be a nullity. | The Court noted this decision was relied upon by the petitioner but distinguished it: that case was premised on composite relief; the present suit's substance differs (grievance against co‑partners), so the precedent was not treated as controlling. |
| Marwadi Punamji Motiji v. Mohamad Siddique Musabhai Shaikh, AIR 1993 Gujarat 168 | Relied upon for the principle that composite relief falling partly outside Rent Act jurisdiction may render the suit not maintainable in Civil Court. | The Court observed this line of authority but held the facts here were different and the decisions were inapplicable because the main relief in this suit relates to partners' transactions rather than a landlord–tenant dispute. |
| Rafiuddin Nuruddin v. Abduyl Karim, 2005 (4) Mh.L.J 646 | Authority where it was held that the relationship of landlord and tenant was not established and therefore Rent Act courts did not have jurisdiction. | The Court treated the decision as addressing different factual settings; it concluded the pleadings here do not disclose a dispute under section 33 of the Maharashtra Rent Control Act and thus Rent Act jurisdiction is not attracted. |
| Shantabai Y. Kothare v. Shankar P. Naik, 2006 (5) Mh.L.J 651 : 2006 (4) Bom. C.R 55 | Held that a suit involving a tenanted premises and an encroached area (composite suit) was not maintainable in Civil Court with respect to the encroached area (outside Rent Court jurisdiction). | The Court accepted the principle but distinguished the present case on facts: Shantabai involved an encroachment issue; here the plaintiff's grievance is against partners' transactions and the principal relief sought is declaratory/cancellation in the Civil Court's domain. |
| Bochhraj Factories Pvt. Ltd. v. Smt. Damyanti, 1977 U.C.R (Bom.) 353 | Relied on to support maintainability in Civil Court where dispute relates to partners and partnership assets rather than pure landlord–tenant issues. | The Court noted this precedent as supporting respondent's case that disputes concerning partners and partner assets are within Civil Court jurisdiction; this principle was applied to characterize the suit as a partners' dispute. |
| Madhavprasad v. Indirabai, AIR 1953 Bombay 192 | Cited in support of the proposition that certain disputes involving partner rights are maintainable in Civil Courts. | The Court acknowledged this authority as supportive of the respondent's position; it was used to bolster the view that this suit is essentially about partnership rights. |
| P.V. Raheja v. L.I.C. of India, AIR 1982 Bombay 523 | Relied upon for the proposition that particular disputes can be within Civil Court jurisdiction despite the existence of special statutes for certain classes of disputes. | The Court recognized this precedent in supporting the respondent's contention that the Civil Court may try declarations/cancellations concerning instruments and partner rights. |
| Inderjit Sohanlal Gulati v. M.P. Gulati, 1989 (1) AIR CJ 496 | Authority that where dispute concerns a partner's personal right or asset and the landlord is impleaded, such a suit is maintainable in the Civil Court and not in the Rent Act court. | The Court noted and relied on this principle to support the view that the present suit (a partner asserting a right in a leasehold asset against co‑partners) is maintainable in the Civil Court. |
Court's Reasoning and Analysis
The Court analyzed jurisdiction by focusing on the substance of the pleadings rather than the mere form of the prayers. The steps of the Court's reasoning, drawn from the opinion, are:
- The Court began with the uncontested propositions that Civil Courts have plenary jurisdiction unless expressly or impliedly barred, and that jurisdiction‑ousting provisions in statutes must receive strict construction.
- The Court emphasized the governing principle that when a special tribunal is created by statute, the Civil Court's jurisdiction is ousted only in respect of those reliefs which the special tribunal is competent to grant; other reliefs remain within the Civil Court's domain.
- To ascertain whether the Civil Court's jurisdiction was barred, the Court examined the plaint as a whole — the averments disclosing cause of action and the reliefs sought — and asked what, in substance, the claim was about (para 13, 29).
- On reading the pleadings, the Court found that the plaintiff's grievance was against the acts of the other partners (defendants 1–3) who allegedly entered into transactions with the landlord/owner without the plaintiff's consent. The claim was therefore fundamentally a dispute about partner rights in a partnership asset (a leasehold interest), not a pure landlord–tenant dispute (para 14, 16, 17, 30).
- The Court concluded the plaintiff seeks a declaration that the allegedly executed transactions were void and not binding on him and cancellation of the registered instruments — reliefs that fall squarely within Civil Court competence. The other reliefs pleaded (injunctions, mandatory reconstruction) are consequential to the declaration/cancellation reliefs (para 31, 34).
- The Court considered the authorities relied on by the petitioner but observed they were premised on situations where composite reliefs included matters outside the Rent Act and thus rendered the Civil Court's jurisdiction improper; those cases were distinguishable on the facts because the present suit is directed against co‑partners rather than being a landlord–tenant dispute (para 16, 17, 32).
- The Court reiterated that a Civil Court cannot be deprived of jurisdiction merely because one of several prayers could lie before a special tribunal; rather, the court must decide whether the substance of the suit falls within the special tribunal's exclusive purview (para 10, 12, 13, 18).
- On that analysis the trial Court's conclusion — that jurisdiction of the Civil Court was not barred — was held to be correct and the revision was dismissed (para 19, closing order).
Holding and Implications
Holding: The Civil Revision Application is dismissed; the trial Court correctly held that the Civil Court's jurisdiction was not barred and therefore the application under section 9‑A was properly rejected. The order concludes with the operative phrase: Revision dismissed.
Implications and direct effects:
- The direct effect is that the suit as pleaded — seeking declaration and cancellation of registered instruments alleged to be void vis‑à‑vis a partner's share in a leasehold asset — is maintainable in the Civil Court.
- The Court held that reliefs for declaration and cancellation of instruments generally lie within the Civil Court's jurisdiction; courts constituted under the Provincial Small Cause Courts Act or the Maharashtra Rent Control Act would not be in a position to grant cancellation of such instruments (para 18).
- The Court distinguished earlier decisions addressing composite suits and made clear that where the substance of the claim is a partners' dispute over partnership assets, Rent Act or Small Cause Courts' jurisdiction will not be attracted.
- No costs were ordered: the revision was dismissed with no order as to costs (para 19).
- The opinion does not purport to lay down any novel law beyond applying established principles (strict construction of jurisdiction‑ousting statutes, substance of pleading controls); the decision is particular to the facts and pleadings before the Court.
Revision dismissed.
This summary is prepared exclusively from the text of the provided opinion and does not add, infer, or augment facts or legal propositions beyond what is contained in that opinion.
1. The petitioner is the original defendant No. 5. Respondent No. 1 is the original plaintiff, who has filed the Suit for multifarious reliefs. The present petitioner filed an application under section 9-A of the Code of Civil Procedure for framing the preliminary issue about jurisdiction. The trial Court framed the preliminary issue of jurisdiction and decided it. The trial Court held that the jurisdiction of the Court is not barred in view of the provisions of the Maharashtra Rent Control Act. Aggrieved thereby, the defendant No. 5 has filed the present Revision.
2. Mr. Hingmire, learned Counsel for the petitioner canvassed the following propositions:
a. The prayers made in the Suit are such, which could be considered and granted only by the Court as contemplated under the Provincial Small Cause Courts Act or under the Maharashtra Rent Control Act. The dispute is between the lessor and lessee and/or landlord and tenant. In view of the provisions of the Maharashtra Rent Control Act and the Provincial Small Cause Courts Act, the jurisdiction to try the said dispute would only vest with the Court as contemplated under the Presidency Small Cause Courts Act.
b. The learned Counsel further contends that it is the substance of the pleading that is required to be considered. Upon a plain reading of the plaint, it would disclose that the plaintiff has approached the Court in the capacity of the lessee and therefore, those parts of the prayer and the pleadings with regard to the relationship of the lessor and lessee and/or landlord and tenant cannot be tried by the Civil Court.
c. The learned Counsel further contends that the Court could not have dealt with the Suit involving composite prayers. The same would not be within the jurisdiction of the Court. In fact, such Suit was not maintainable. The learned Counsel relies on the judgment of the Gujarat High Court in a case of Govindbhai v. New Shorrock Mills, Nadiad, reported in AIR 1984 Gujarat 182 and the judgment of the learned Single Judge of the Gujarat High Court in a case of Marwadi Punamji Motiji v. Mohamad Siddique Musabhai Shaikh, reported in AIR 1993 Gujarat 168 so also the judgment of the learned Single Judge of this Court in a case of Rafiuddin Nuruddin v. Abduyl Karim, reported in 2005 (4) Mh.L.J 646.
d. The learned Counsel further submits that claiming relief with regard to the instrument so also with regard to the status as a lessee could not be tried in one and the same Suit, and that too, before the Civil Court. When the part of the relief is outside the jurisdiction of the Court, such Suit is not tenable. The learned Counsel relies on the judgment of the learned Single Judge of this Court in a case of Shantabai Y. Kothare v. Shankar P. Naik, reported in 2006 (5) Mh.L.J 651 : 2006 (4) Bom. C.R 55.
e. The learned Counsel submits that upon reading the plaint in toto, it is manifest that the Civil Court does not have the jurisdiction to try and entertain the Suit. Some of the reliefs claimed also cannot be granted by the Civil Court as the same are within the exclusive jurisdiction of the Rent Court.
3. Mr. Dhakephalkar, learned Senior Counsel for the respondent No. 1-plaintiff supports the order and submits that all Civil Courts have got jurisdiction unless expressly or impliedly barred. According to the learned Senior Counsel, the relief with regard to the reconstruction so also with regard to the declaration about the transaction cannot be granted by the Court established under the Maharashtra Rent Control Act or the Provincial Small Cause Courts Act. Such a relief is outside the purview of the jurisdiction of the Civil Court.
4. According to the learned Senior Counsel, if the totality of the plaint is read then it is a dispute basically between the partners of the firm and not a dispute between the landlord and the tenant. The relief is sought against the partners of the firm so also the action taken by the partners of the firm. Such a relief being outside the purview of the Rent Court was perfectly maintainable before the Civil Court. The learned Senior Counsel relies on the judgment of the learned Single Judge of this Court in a case of Bochhraj Factories Pvt. Ltd. v. Smt. Damyanti, reported in 1977 U.C.R (Bom.) 353 so also the judgment of the Division Bench of this Court in a case of Madhavprasad v. Indirabai, reported in AIR 1953 Bombay 192 and the judgment of the learned Single Judge of this Court in a case of P.V Raheja v. L.I.C of India, reported in AIR 1982 Bombay 523.
5. The learned Senior Counsel also harped on the judgment of the learned Single Judge of this Court in the case of Inderjit Sohanlal Gulati v. M.P Gulati reported in 1989 (1) AIR CJ 496 to contend that when the dispute is with regard to the personal right of the partner or asset of the partner and the landlord is impleaded as party defendant then such a Suit would be maintainable before the Civil Court and would not be maintainable before the Court under the Rent Act.
6. With the assistance of the learned Counsel, I have gone through the pleadings and the order. There need not be a debate with the proposition that all Civil Courts have jurisdiction unless their jurisdiction is expressly or impliedly barred. There also cannot be a debate with the proposition that it is the substance of the pleading which has to be considered.
7. Before I proceed to consider the arguments advanced by the learned Senior Counsel appearing for the respective parties, it would be appropriate to refer to the relevant pleadings in the plaint.
“By the present Suit, the plaintiff has challenged the said alleged transactions of 5-9-2006 and 1-9-2006 being illegal, void ab initio and not binding on the plaintiff.”
8. The plaint proceeds to give the details of the partnership being reconstituted from time to time and the rights of the firm and partners in the property leased.
“7. The plaintiff states that the defendant Nos. 2 and 3 being the partners are required to carry out the business of the firm to the best advantage of the firm and all the partners and the policy decisions are to be taken by all the partners according to the said partnership deed i.e as per the contract as well as according to the provisions of the Indian Partnership Act, 1932. Plaintiff states that according to the said partnership deed and even according to law no partner is entitled to assign, transfer his share in the partnership business to any third party nor any party is entitled to sell, surrender or otherwise transfer either the leasehold rights or any immovable property or the assets of the partnership firm to any person without the prior written consent of all the partners.
8. The plaintiff states that he learned from the news items published from Pune that the defendant Nos. 1 to 3 in collusion with each other have transferred the leasehold rights either by surrender or otherwise in favour of the defendant No. 5 in joining hands with the defendant No. 4.
Admittedly as on today the firm is in existence i.e same has not been dissolved, and therefore, they alone have no any right to transfer the leasehold rights wherein the plaintiff is also having ⅓rd undivided share, and therefore, the said transaction is illegal, void ab initio and non est and the same is not binding on the plaintiff and the plaintiff continues to be a lessee having ⅓rd undivided share in the said leasehold rights. On the basis of the abovesaid facts and rights of the plaintiff, he has issued a notice dated 26-9-2006 to the defendant Nos. 1 to 3 calling upon them to give all the details of the transaction…
The defendants cannot go beyond the partnership deed. Even though losses are not shared by the plaintiff that is not a criteria, and therefore, the plaintiff is a partner and sharing the losses is not a condition precedent for becoming a partner or acquiring the status of a partner, and therefore, the plaintiff is constrained to file the present suit challenging this transaction and cancellation of these documents and for declaration of his right in the immovable property in the form of leasehold rights, hence the present suit. If these documents remain in existence they would cause prejudice to the rights of the plaintiff.”
9. Based upon the said pleadings, the plaintiff has claimed following reliefs in the Suit:
“a) It may kindly be declared that the plaintiff continues to be a lessee having undivided share to the extent of ⅓rd in the said leasehold rights i.e assets of the partnership firm;
b) It may also kindly be declared that the alleged transaction dated 5-9-2006 by defendant Nos. 1 to 3 in favour of the defendant No. 5 i.e surrender of leasehold rights and the alleged transaction between defendant Nos. 4 and 5 regarding the alleged Conveyance dated 1-9-2006 are illegal, null and void ab initio and non-est and not binding on the plaintiff;
c) Both these registered instruments dt. 5-9-2006 and 1-9-2006 alleged to have been executed in favour of defendants may kindly be cancelled by decree of this Court and a note to that effect may kindly be sent to the registering authority regarding cancellation of these instruments;
d) It may also kindly be declared that the defendant No. 5 has not acquired any rights in the said leasehold rights or in the property more particularly described in the Schedule and to deal with the said property or carry out any development or construction over the suit property;
e) The defendant No. 5 or any other defendants may kindly be permanently restrained from dealing with the suit property and create any further third party interests in the suit property and be farther restrained from carrying out any development and construction over the suit property.
f) Necessary interim reliefs restraining the defendants in terms of prayer clause No. (e) above may kindly be granted during the pendency of the present suit for which a separate application is filed,
g) The defendant Nos. 1 to 3 may kindly be directed by mandatory injunction to reconstruct with their own funds the demolished building of the original restaurant and bring in the suit property to its original nature and status thereby enabling the plaintiff and defendant Nos. 1 to 3 to continue the said business as before.”
10. Even if it is assumed that a particular Act is a complete Code, its operation has to be limited to the purpose for which it was enacted. A provision in the Statute ousting jurisdiction of the Court must receive strict construction. Where the Civil Court's jurisdiction is barred expressly, it must mean that it is confined to the matters connected therewith or covered thereby. The adjudicatory forum provided therein must be competent to resolve the dispute.
11. Jurisdiction of Civil Court is plenary in nature. A casus omissus cannot be supplied by the Courts to oust jurisdiction of Civil Court. Court which cannot give relief claimed for has no jurisdiction to deal with the case.
12. When a special tribunal is created under special Statute, jurisdiction of Civil Court is ousted only in respect of those reliefs which could be granted by special tribunals in special Statute and in other respects, jurisdiction of Civil Court is not ousted.
13. A plea of bar of jurisdiction of Civil Court must be considered having regard to the contention raised in the plaint. For the said purpose, averments disclosing cause of action and the reliefs sought for therein must be considered in its entirety. The Court would not be justified in determining the question one way or the other, only having regard to the reliefs claimed de hors the factual averments made in the plaint. The Court has to consider what in substance and not merely in form, is the nature of the claim made in the Suit and the underlying object in seeking the relief therein.
14. Considering the substance-of the pleading, it transpires that the grievance of the plaintiff is against the acts of the other partners entering into transactions with the landlord/owner and the further transactions thereto. It is not a dispute about the rights of tenancy between the landlord and the tenant. The claim of the plaintiff is that being a partner in the firm, he has a right in that asset of the firm, which is leased, and as the transaction is without his consent, he retains his right. The averments in the plaint do not suggest that the dispute is the one contemplated under section 33 of the Maharashtra Rent Control Act or a dispute, which would be tried in a Court established under the Provincial Small Cause Courts Act. The Suit is also not one of a composite relief as is being sought to be contended. The other reliefs would be consequential to the main relief about the declaration regarding the transaction entered into between the parties, which is without the consent of the plaintiff.
15. The relief of declaration and cancellation with regard to the registered instruments is only within the realm of the Civil Court. Prayer clauses (b) and (c) in the plaint deal with the same. The other reliefs would be the consequences of the finding in respect of prayer clauses (b) and (c). Prayer clause (g) also would be consequential to the same, that is, a prayer for mandatory injunction.
16. The judgments relied by the learned Counsel for the petitioner are on the premise wherein the composite relief was claimed. In a case of Shantabai Y. Kothare, referred supra, the Suit was filed in respect of the tenanted premises as well as the encroached area. It was held by the Court that the Suit in respect of the encroached area is not maintainable, and as such, a composite Suit would not be tenable. The Court would not have jurisdiction to grant relief in respect of an encroached area. In a case of Rafiuddin Nuruddin, referred supra, it was held by the Court that the relationship of the landlord and the tenant was not established, and as such, the Court under the Maharashtra Rent Control Act did not get the jurisdiction. So also in a case of Govindbhai and Marwadi Punamji Motiji, referred supra, it was held that when one relief falls outside the provisions of the Maharashtra Rent Control Act then in such a case, the Court does not have the jurisdiction and the said decree would be nullity.
17. The position here is different. The plaintiff is actually agitating his grievance against the partners of the firm. His grievance is that his partners have entered into transaction with the landlord without his consent and seeks declaration that the said transaction is not binding upon him and further seeks the relief of cancellation of the said transaction. All other prayers would be the consequence of the said relief of declaration and cancellation of the instrument.
18. As discussed above, the jurisdiction vis-a-vis the nature of the Suit is to be determined on the basis of the averments in the plaint and not on the basis of defence or the result of the suit on the merits of the claim. Suit for Cancellation of Instrument on the ground that it is void, illegal will generally lie before the Civil Court. The Courts constituted under the Provincial Small Cause Courts Act or Maharashtra Rent Control Act would not be in a position to grant relief with regard to the Cancellation of Instrument.
19. In light of the above, the trial Court has properly considered the said aspect and has rejected the application. I do not find any error committed by the trial Court in passing the impugned order. Civil Revision Application, as such, stands dismissed. However, with no order as to costs.
Revision dismissed.Maharashtra Rent Control Act.
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