Bombay High Court
DELTA ENTERPRISESversusSHENAZ FARID AHMED ANSARI AND ORS.
- Decided
- Disposal
- Disposed Off
Holding
The lower court’s order granting leave to defend the summary suits subject to deposit of the claim amount is affirmed.
Summary
The plaintiffs, tenants of a building slated for redevelopment, entered into Permanent Alternate Accommodation Agreements (PAAA) with the developer (Defendant No.1) which required the developer to pay transit rent of Rs.10,000 per month, increasing to Rs.20,000 per month if delayed. The developer failed to complete the project and did not deposit the Rs.50 crore ordered by the High Court in a writ petition, leading to cancellation of its NOC by MHADA. The plaintiffs filed summary suits for recovery of transit rent, and the City Civil Court granted them leave to defend the suits subject to depositing the claimed amount. The applicants challenged this order on grounds of maintainability under Order XXXVII, limitation, and res judicata. The High Court held that the suits were maintainable under the relevant provision of Order XXXVII, the limitation argument was not compelling as the liability was compensatory, and no substantial defence was raised; consequently, the lower court’s order was upheld and the revision applications dismissed.
Issues considered
- Whether the summary suit is maintainable under Sub‑Rule (2) of Rule 1 of Order XXXVII of the CPC.
- Whether the claim for transit rent is barred by the law of limitation.
- Whether the doctrine of res judicata bars the transit rent claim in view of the earlier writ petition.
- Whether the lower court was justified in granting leave to defend the suit subject to deposit of the claim amount.
Legislation cited
- Code of Civil Procedure, 1908 — s. Order XXXVII Rule 1(2)
Subjects
- Transit rent
- Permanent Alternate Accommodation Agreement
- Summary suit
- Limitation
- Res judicata
- Revisional jurisdiction
- Deposit condition
- Development agreement
- MHADA
- NOC
- Compensation
Judgment
12-14-CRA513-2026+.DOC
Santosh
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
CIVIL REVISION APPLICATION NO. 513 OF 2026
Delta Enterprises ...Applicant
Versus
Dr. Farid Ahmed Adbul Gaffar Ansari and
ors. …Respondents
WITH
CIVIL REVISION APPLICATION NO. 514 OF 2026
Delta Enterprises ...Applicant
Versus
Dr. Farid Ahmed Adbul Gaffar Ansari and
ors. …Respondents
WITH
CIVIL REVISION APPLICATION NO. 515 OF 2026
Delta Enterprises ...Applicants
Versus
Shenaz Farid Ahmed Ansari And Ors …Respondents
Mr. Aadil Parsurampuria, a/w Neuty Thakkar and Sanjay Mali,
i/b Tushar Goradia, for the Applicant in all.
SANTOSH
SUBHASH
KULKARNI
Mr. Rajiv Narula, a/w Tarang J., i/b Jhangiani Narulla & Asso.,
Digitally signed by
SANTOSH SUBHASH
KULKARNI
for the Respondents.
Date: 2026.10.01
21:13:49 +0530
CORAM: N. J. JAMADAR, J.
DATED: 29th SEPTEMBER, 2026
ORDER:-
1. Heard the learned Counsel for the parties.
2. These revision applications are directed against identical
orders passed in the Summons for Judgment in three summary
suits being, Commercial Summary Suit Nos. 92/2022, 81/2022,
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and 91/2022, whereby, in an almost identical fact situation, the
learned Judge, City Civil Court, was persuaded to grant the
leave to defend the suits, subject to deposit of the principal
amount purportedly due and payable by the applicant-
Defendant No.1 to the respondent(s)/plaintiff(s) towards the
transit rent agreed to be paid under Permanent Alternate
Accommodation Agreements (PAAA) executed by the Defendant
No.1 in favour of the plaintiffs.
3. The plaintiffs were tenants in a building, “Mohammed Bux
Building”, Byculla, Mumbai. The owners and landlords decided
to redevelop the said property and entered into a registered
Development Agreement with the defendant No. 1, a partnership
firm. The defendant No.1 entered into PAAA on 15 th July, 2010
with the plaintiffs in respect of their respective tenements.
Under Clause 8 of the said agreement, the defendant No.1-
developer agreed to pay to the tenants a sum of Rs. 10,000/- per
month by way of rent for the alternate accommodation till the
delivery of possession of the permanent alternate premises in
the developed building. The defendant No.1 agreed to complete
the construction of the building in 24 months from the date of
the commencement certificate, and, in the event of delay, the
defendant No. 1 further agreed to pay the rent at the rate of Rs.
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20,000/- per month. The plaintiffs-tenants delivered the
possession of their respective tenements to the defendant No. 1
for the purpose of development.
4. Incontrovertibly, the defendant No. 1 failed to develop the
project in accordance with the terms of the agreement. The
plaintiffs instituted a petition being Writ Petition No.2143/2018,
seeking certain reliefs. In the said petition, a Division Bench of
this Court directed the defendant No. 1 and its partners to
deposit a sum of Rs.50 Crores with the Mumbai Building
Repairs and Reconstruction Board, a unit of MHADA, on or
before 15th April, 2019. In the event the defendant No. 1 and its
partners failed to show their bona fides and deposit the said
amount, the Board was directed to pass an appropriate order in
accordance with law in furtherance of the show cause notices,
including cancellation or withdrawal of the no objection
certificate issued to the defendant No. 1. Indisputably, the
defendant No. 1 failed to deposit the said amount and,
eventually, MHADA cancelled the NOC. The tenants have
thereafter instituted the instant suits for recovery of the amount
of transit rent on the strength of the PAAAs.
5. Mr. Parsurampuria, the learned Counsel for the applicant,
submitted that the learned Judge, City Civil Court, failed to
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appreciate that the summary suit in the present form was not
maintainable as it did not fall within any of the clauses of Sub-
Rule (2) of Rule 1 of Order XXXVII. Secondly, the claim for
transit rent from the date of the execution of the PAAA was
clearly barred by the law of limitation. At best, the plaintiffs
could lay claim for the transit rent for a period of 3 years
preceding the institution of the suits. It was further submitted
that since no relief was granted in the above-numbered writ
petition by this Court, in regard to the recovery of the transit
rent, the suit would be barred by the principles of res judicata.
6. None of the aforesaid submissions deserve any
countenance. Incontrovertibly, under clauses 8 and 9 of the
PAAA, the defendant No. 1 had unequivocally agreed to pay
transit rent at the rate of Rs. 10,000/- per month for the initial
period of 24 months, and, in the event of delay, at the rate of Rs.
20,000/- per month. Thus, the suit is prima facie based on a
written contract covered by sub-clause (i) of clause (b) of sub-
rule (2) of Rule 1 of Order XXXVII.
7. The ground of limitation, strenuously pressed into service
by Mr. Parsurampuria, also does not seem to be of such
substance as to warrant an unconditional leave. The liability to
pay transit rent was prima faice in the nature of compensation
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and not strictly a rent within the realm of a landlord-tenant
jural relationship and disputes. Moreover, the liability was
incurred by the defendant No. 1 to pay the transit rent till the
delivery of possession of the permanent alternate premises in
the newly developed building.
8. In any event, the Court cannot lose sight of the fact that
on the faith of the representation of the defendant No. 1, the
plaintiffs vacated their tenements and thereby irretrievably
altered their possession. Despite an opportunity granted by this
Court in Writ Petition No.2143/2018 to show their bona fide to
develop the property and abide by their contractual and
statutory obligations by depositing the amount of
Rs.50,00,00,000/-, the defendant No.1 failed to comply with the
said order. Prima facie, the defendant No.1 has not raised a
substantial defence.
9. In these circumstances, the learned Judge, City Civil
Court, was fully justified in granting leave to defend the suit
subject to the condition of the deposit of the claim amount.
10. Thus, no interference is warranted in the impugned orders
in exercise of limited revisional jurisdiction.
11. The revision applications stand dismissed.
[N. J. JAMADAR, J.]
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