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Bombay High Court

DR. CHITTUSINH MOHANSINH CHAUHANversusMANILAL BABUBHAI DHODI AND ANR.

Decided
Disposal
Disposed Off

Holding

The court held that the minutes of order recording the parties’ agreement on payment of 27% of the license fee are accepted and enforceable, and any default may attract contempt proceedings, subject to the final decision of the pending appeal.

Summary

The case concerns an interim application filed in a pending first appeal (No. 641 of 2020) arising from a 2011 suit for declaration, possession and injunction over land in Dadra & Nagar Haveli. The trial court had declared the sale deed and power of attorney in favour of the defendant bogus and ordered possession to be delivered to the plaintiff. The defendant appealed and was subsequently directed not to lease or license the property without court leave. Despite this, the defendant entered into a leave‑and‑license agreement with a third party, leading to a further interim order requiring the defendant to pay 15% of the license fee to the plaintiff. The parties now agree, via minutes of order, that the defendant will pay 27% of the monthly license fee for five years, with a short‑fall of 12% to be paid within three weeks, and that any default may attract contempt proceedings, subject to the final decision of the pending appeal. The court accepted these minutes and disposed of the interim application.

Issues considered

  • Whether the parties’ agreement to modify the payment percentage under the leave‑and‑license arrangement is enforceable pending the final decision of the appeal.
  • Whether the defendant can be compelled to pay the additional 12% short‑fall within the stipulated period.
  • Whether contempt jurisdiction is available against the defendant for default in payment under the interim order.
  • Whether the earlier prohibition on leasing or licensing the property remains effective in light of the new agreement.

Subjects

  • interim application
  • leave and license agreement
  • possession
  • injunction
  • contempt jurisdiction
  • civil appeal
  • property law
  • Dadra and Nagar Haveli

Judgment

                      Gokhale                              1 of 5                 7-ia-3855-26


                                IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                        CIVIL APPELLATE JURISDICTION

                                   INTERIM APPLICATION NO. 3855 OF 2026
                                                    IN
                                       FIRST APPEAL NO. 641 OF 2020

                     Dr. Chittusinh Mohansinh Chauhan                      ..Applicant
                           Versus
                     Manilal Babubhai & Anr.                               ..Respondents

                                                __________
                     Ms. Rekha Musale i/b. Varsha Palav for Applicant.
                     Mr. Sanjiv Sawant a/w. Abhishek Matkar and Malhar Bageshwar
                     i/b. Abhishek Deshmukh for Respondent No.1.
                                                __________

                                         CORAM : SARANG V. KOTWAL &
                                                 RANJITSINHA RAJA BHONSALE, JJ.

                                         DATE    : 29 SEPTEMBER 2026
                     PC :

                     1.           This is an application in pending First Appeal No.641 of

                     2020. This application is filed by the original Appellant in First

                     Appeal No.641 of 2020 who was the original Defendant No.1 in

                     Special Civil Suit No.45 of 2011. The suit was for declaration,

                     possession and permanent injunction in respect of the land at

                     survey No.121/25 admeasuring 26R at village Amli, at Dadra &

                     Nagar Haveli. The suit was decreed vide the order dated

                     28.01.2020. It was declared that the Sale Deed dated 15.12.1999
        Digitally
        signed by
        VINOD
VINOD   BHASKAR
BHASKAR GOKHALE
GOKHALE Date:
        2026.09.30
        10:41:45
        +0530
                                     2 of 5                  7-ia-3855-26


was bogus, illegal and not binding on the Plaintiffs in the suit. It

was held that the Power of Attorney at Exhibit-65 in the suit was

not genuine and by way of decree, the Defendant No.1 (Appellant)

was directed to deliver the possession of the property. The

Defendant No.1 was directed to remove the construction created

on the land and to handover the vacant possession of the plot.


2.        The Defendant No.1 preferred First Appeal No.641 of

2020. It was admitted vide the order dated 09.03.2021. Vide the

order dated 07.03.2022 passed in I.A.No.2306 of 2021 in First

Appeal No.641 of 2020, the Division Bench had directed the

Appellant not to part with the possession, create third party rights

or encumbrances of any nature whatsoever over or in respect of

the land or the building until further orders of the Court. There

was an industrial factory plant on the premises. The Division

Bench specifically ordered that the Court was not permitting

letting out, leasing or giving on leave and license of any part of the

land or the building without prior leave of the Court obtained after

at least three weeks’ prior notice to the Advocate for the

Respondent.
                                      3 of 5                 7-ia-3855-26


3.        Subsequently, it transpired that the Defendant No.1 had

already entered into leave and license agreement with the third

party. Therefore, I.A.No.30173 of 2022 was preferred in the same

First Appeal by the original Plaintiff pointing out this fact. Another

Division Bench of this Court considered the situation and observed

that the Court was not proceeding under contempt jurisdiction, but

directed that the Appellant (original Defendant No.1) shall pay

15% of the amount of license fee starting from the month of

October 2023 till the disposal of the Appeal by way of bank

transfer to the account of the original plaintiff.


4.        The Appeal is still pending and the leave and license

agreement was due for renewal in the month of April 2026.


5.        Today, the learned counsel for the original Plaintiff

(Respondent No.1) and the original Defendant No.1 (Appellant)

have tendered the Minutes of Order dated 29.09.2026 signed by

the Advocates of their respective parties. The Minutes of order are

taken on record and marked ‘X’ for identification. The original

Plaintiff is present in the Court. He is identified by the learned
                                     4 of 5                   7-ia-3855-26


counsel. The original Defendant No.1 is not present in the Court.

However, learned counsel representing him takes responsibility of

these Minutes of order. The Minutes of order dated 29.09.2026 are

as follows:


                         “MINUTES OF ORDER

               Upon the matter being called out, the following
         terms are agreed and recorded by and between the
         Applicant and the Respondent No.1:

         1.         That the Applicant undertakes to pay to the
         Respondent No.1 herein a sum equivalent to 27% of
         the monthly License Fee which is payable by the
         Licensee under Clause 3 of the Leave and License
         Agreement to be executed for a period of five yeas
         effective from 1st April, 2026 to 31st March, 2031,
         draft of which is annexed as Exhibit "D' to the present
         Interim Application qua the subject premises viz.
         Industrial Building admeasuring 18,900 square feet.
         (Super Built Up Area) situated at Survey No. 121/25,
         66 KVA Road, Village -Amli of the Union Territory of
         Dadra and Nagar Haveli. The said amount shall be
         deposited/transferred by the Applicant into the bank
         account of the Respondent No. 1 before the 15 th day of
         every month.

         2.        The Applicant has already deposited a sum
         of Rs.63,165/- on 13-04-2026 and thereafter deposited
         a sum of Rs.66,330/- per month from May 2026 till the
         month of September 2026, totally amounting to
         Rs.3,94,815/- (Rupees Three Lakhs Ninety-Four
         Thousand Eight Hundred and Fifteen only) at the rate
         of 15% of the monthly license fees, as directed by this
         Hon'ble Court by the order dated 27th October, 2023 in
         Interim Application No. 30173 of 2022 in the Bank
         Account of the Respondent No.1. The remaining /
                                      5 of 5                  7-ia-3855-26


         differential amount of balance 12% for the months of
         April, 2026 to September, 2026, the Applicant shall,
         within a period of three (3) weeks from the date of the
         present order, pay to the Respondent No.1, by
         depositing it in the bank account of the Respondent
         No.1.

         3.        Upon execution of the Leave and License
         Agreement, the Applicant/Appellant shall continue to
         pay the Respondent 27% of the monthly compensation
         received by the Appellant till the expiry of the said
         agreement or till the decision in the pending First
         Appeal, whichever is first in time. The Applicant shall
         provide a true copy of the duly executed Leave and
         License Agreement to the Advocate for Respondent
         No.1.

         4.          The parties herein shall be bound by the
         final decision of the pending First Appeal.”



6.        The Minutes of order are accepted.


              In the light of these Minutes of order, the present

interim application is disposed of.


7.        It is made clear that, in case of default in payment,

liberty is granted to the original Plaintiff to proceed in the

contempt jurisdiction against the Appellant (original Defendant

No.1).




(RANJITSINHA RAJA BHONSALE, J.)                (SARANG V. KOTWAL, J.)


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