1988 JTR(SC) 704
1988 4 BomCR(SC) 584 ; 1990 67 CompCas 564 ; 1991 CriLR 539 ; 1988 4 JT 714 ; 1989 1 RCR(Rent) 165 ; 1989 4 SCC 531 ; 1991 SCC(Cri) 420 ; 1988 4 SCR 714
SUPREME COURT OF INDIA
BEFORE B.C. RAY AND M.H. KANIA, JJ.
DAMODAR DAS JAIN
Versus
KRISHNA CHARAN CHAKRABORTI AND ANOTHER
Criminal Appeal Nos. 313 and 314 of 1985
Decided on 17-11-1988
Act
Referred
:BOMBAY RENTS, HOTEL AND LODGING HOUSE RATES CONTROL ACT : S.5(4)(a), S.5(1)(1), S.13
CIVIL PROCEDURE CODE : S.9
COMPANIES ACT : S.630
TRANSFER OF PROPERTY ACT : S.105
Companies Act, 1956 - Section 630 - Bombay Rents, Hotels and Lodging House Rates (Control) Act, 1947 - Wrongful holding of company property - Termination of service - This appeal by special leave is directed against judgment and order passed dismissing Criminal Writ Petition and Criminal Application by High Court - Appellant-company filed a complaint under Section 630 of Companies Act, 1956 before Magistrates Court on ground that respondent was provided with a Companys flat for residing there while he was in employment of Company - It is Company case that they look as a licensee said flat from the owner on the basis of a paying guest agreement and permitted respondent to stay therein - Respondent after termination of his service refused to vacate flat and hence Company filed complaint under Section 630 of Companies Act for eviction of respondent from the said flat and for taking possession of the flat and for punishing respondent - Against this judgment an appeal was filed before the Sessions Judge - Whether after written agreement of licence in favour of the Company has expired – Held, High Court felt that disputes raised by respondent herein were bona fide disputes. Before us it has not been disputed that this view of the High Court was correct as far as the question whether Company could be held to be a tenant of the flat is concerned - As far as question of implied licence in favour of Company is concerned, that also, in our view, is a question which require to be determined by civil court and cannot be determined by a Magistrates Court in a proceeding under Section 630 of the Companies Act - Court do not find any merit in appeal - Appeal dismissed - Both the aforesaid questions are left open to be decided by a court of competent jurisdiction - Court may point out that if there are any observations in judgment of High Court to the effect that after a written agreement of licence comes to an end there cannot be an implied licence, they may not be taken as laying down correct law – Appeal dismissed.
Companies Act, 1956 - Section 630 - Bombay Rents, Hotels and Lodging House Rates (Control) Act, 1947 - Wrongful holding of company property - Termination of service - This appeal by special leave is directed against judgment and order passed dismissing Criminal Writ Petition and Criminal Application by High Court - Appellant-company filed a complaint under Section 630 of Companies Act, 1956 before Magistrates Court on ground that respondent was provided with a Companys flat for residing there while he was in employment of Company - It is Company case that they look as a licensee said flat from the owner on the basis of a paying guest agreement and permitted respondent to stay therein - Respondent after termination of his service refused to vacate flat and hence Company filed complaint under Section 630 of Companies Act for eviction of respondent from the said flat and for taking possession of the flat and for punishing respondent - Against this judgment an appeal was filed before the Sessions Judge - Whether after written agreement of licence in favour of the Company has expired – Held, High Court felt that disputes raised by respondent herein were bona fide disputes. Before us it has not been disputed that this view of the High Court was correct as far as the question whether Company could be held to be a tenant of the flat is concerned - As far as question of implied licence in favour of Company is concerned, that also, in our view, is a question which require to be determined by civil court and cannot be determined by a Magistrates Court in a proceeding under Section 630 of the Companies Act - Court do not find any merit in appeal - Appeal dismissed - Both the aforesaid questions are left open to be decided by a court of competent jurisdiction - Court may point out that if there are any observations in judgment of High Court to the effect that after a written agreement of licence comes to an end there cannot be an implied licence, they may not be taken as laying down correct law – Appeal dismissed.
JUDGMENT
1. This appeal by special leave is directed against the judgment and order passed on August 22, 1984 dismissing the Criminal Writ Petition and Criminal Application by the High Court. The appellant-company filed a complaint under Section 630 of the Companies Act, 1956 before the Magistrates Court on the ground that respondent 1 was provided with a Companys flat at Colaba, Bombay for residing there while he was in employment of the Company. It is the Companys case that they look as a licensee the said flat from the owner on the basis of a paying guest agreement and permitted respondent 1 to stay therein. Respondent 1 after termination of his service in 1979 refused to vacate the flat and hence the Company filed the complaint under Section 630 of the Companies Act for eviction of respondent 1 from the said flat and for taking possession of the flat and for punishing respondent 1.
2. The Magistrate after hearing the parties passed an order for eviction of respondent 1 from the said flat and also convicted respondent 1.
3. Against this judgment an appeal was filed before the Sessions Judge. The Sessions Judge allowed the appeal and reversed the judgment and order of the Magistrate. Against that an appeal was filed before the High Court. The High Court dismissed the appeal taking the view that the basic questions involved were whether the Company could be said to be a tenant of the said flat as contemplated under the Bombay Rents, Hotels and Lodging House Rates (Control) Act, 1947 and whether after the written agreement of licence in favour of the Company has expired, it could be said that the Company was a licensee of the said flat. The court took the view that both these questions were complicated questions of civil law and hence the Magistrates Court has no jurisdiction to decide the same. The High Court felt that the disputes raised by the respondent herein were bona fide disputes. Before us it has not been disputed that this view of the High Court was correct as far as the question whether the Company could be held to be a tenant of the flat is concerned. As far as the question of implied licence in favour of the Company is concerned, that also, in our view, is a question which require to be determined by civil court and cannot be determined by a Magistrates Court in a proceeding under Section 630 of the Companies Act. We do not find any merit in the appeal. The appeal is, therefore, dismissed. Both the aforesaid questions are left open to be decided by a court of competent jurisdiction. We may, however, point out that if there are any observations in the judgment of the High Court to the effect that after a written agreement of licence comes to an end there cannot be an implied licence, they may not be taken as laying down the correct law.
For Citation: 1989(4) SCC 531
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