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Change of user of premises from residence of employee to guest house for employees – Public Premises Eviction Act 1971

October 9, 2023 legaldeli

Change of user of premises – premises for residence of employee and guest for more employees – Public Premises Eviction Act, 1971

LIC – owner of Flat at Nepean Sea Road, Mumbai – had let out the said flat to NIC in 1957.

By the notice dated 28.3.2007, the tenancy was terminated on the ground of change of user to guest house, causing nuisance, bona fide requirement and arrears of rent.

The composite application under Sections 4 and 7 of the Public Premises (Eviction of Unauthorised Occupants) Act 1971 (for short, PPEAct) was filed.

By the order dated 18.12.2009, the Estate Officer passed order for eviction under section 5 of recovery of arrears of rent with rent under Section 7(1)(2A) and damages with interest under Section 7(2)(2A).

The Appellate Authority allowed the appeal partly, set-aside the order of arrears of rent and reduced quantum of damages.

HELD that the LIC was aware of use of premises as guest house continuing for sufficiently long period and sudden termination cannot be endorsed. The termination was not justified when tested on the anvil of fairness expected of public body. It is only in the event NIC being in unauthorised occupation that the claim for damages would be determinable.

Judgment dated 7.10.2023 of the High Court of Bombay in Writ Petition No.9224 of 2010 Life Insurance Corporation of India Vs. National Insurance Company and another with connected matter.

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