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Bombay High Court

MEGHRAJ FINANCIAL CONSULTANTS PRIAVATE LIMITEDversusNANDLAL BALKISHAN SAHJWANI

Decided
Disposal
DISMISSED

Holding

The petition is dismissed; the termination of the lease and the municipal corporation’s actions are upheld as lawful.

Summary

The petitioners, two surviving partners of the dissolved Khanna Construction House partnership, sought to quash a municipal warrant of attachment, a show‑cause notice and to restore possession of a 999‑year lease land, arguing they were ready to redevelop it. The High Court examined the lease conditions, the partnership’s dissolution decree (2018), the partners’ failure to collectively submit a redevelopment proposal within the six‑month period ordered by the court, and the outstanding property tax arrears. Relying on the Mumbai Municipal Corporation Act, the Indian Partnership Act (Sec. 47) and precedent that a dissolved partnership cannot create new rights, the Court held the lease termination and attachment were lawful. The petition was dismissed, the court‑receiver discharged, and the municipal corporation’s orders affirmed.

Issues considered

  • The validity of the municipal corporation’s warrant of attachment under the MMC Act.
  • The legality of the show‑cause notice and termination of the 999‑year lease.
  • Whether a dissolved partnership can undertake redevelopment or create new rights.
  • The applicability of Section 47 of the Indian Partnership Act to the partners’ actions.
  • The rights of tenants/occupants versus the petitioners’ claim to the land.

Legislation cited

Subjects

  • lease termination
  • partnership dissolution
  • municipal corporation
  • warrant of attachment
  • property tax arrears
  • court receiver
  • redevelopment proposal
  • tenant rights
  • writ petition

Judgment

          Digitally
          signed by
          SUNNY
SUNNY     ANKUSHRAO
ANKUSHRAO THOTE
THOTE     Date:
          2026.05.11
          17:02:30
          +0530


                                                                           5-WP-3004-2025.odt



                             IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                     ORDINARY ORIGINAL CIVIL JURISDICTION

                                         WRIT PETITION NO. 3004 OF 2025

                       1.    Nandlal Balkishan Sahjwani, age. 79
                             Flat no. 22, 2nd floor, Mona Lisa, Boman
                             Petit Road, Mumbai Maharashtra 400 036
                       2.    Shakuntala Balkishan Sahjwani
                             alias Chandni Nanik Lulla, age. 78
                             A2 Cosmos Society, 12/14, Boat Club Road,
                             Pune, Maharashtra 411 001                 … Petitioners
                                      Versus
                       1.    Municipal Corporation of Greater Mumbai
                             Mahapalika Marg, Fort, Mumbai,
                             Maharashtra 400 001
                       2.    Deputy Municipal Commissioner (IMP.)
                             Municipal Corporation Of Greater Mumbai
                       3.    The Assistant Commissioner (Estates)
                             Municipal Corporation of Greater Mumbai,
                             4th Floor Annex Building, MCGM Head
                             Office Mahapalika Marg CST, Mumbai
                             Maharashtra 400 001
                       4.    Asst. Assessor & collector, G-South ward,
                             Municipal Corporation Of Greater Mumbai
                       5.    Laxmi Rajkiran Grover
                             Kaushalaya Bhawan B-25, Sophia School
                             Road, Vallabh Nagar, Kota Rajasthan
                             324 007
                       6.    Satish Anantram Sabhlok
                             B-85, Vidhani Mountview, Plot No. 68,
                             Sector-17, Vashi, Navi Mumbai
                             Maharashtra 400 703
                       7.    Surinder Anantram Sabhlok
                             Flat No.1501, 15th-floor, Vivaant, Plot No.
                             04, Sector-19, Sanpada, Navi Mumbai
                             Maharashtra 400 705


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8.    Ashrafali Ahmed Petkar
      02, Kanti Cooperative Housing Society,
      Plot No 45, Sector 14, Vashi, Navi
      Mumbai Maharashtra 400 703
9.    Vikram Balkishan Sahjwani
      Flat no. 51, 5th floor, Mona Lisa, Boman
      Petit Road, Mumbai, Maharashtra 400 036
10. Saroj Khanna
    Office No.1, Sai Pooja CHS, Near Jan
    Kalyan Bank, Om Nagar, Andheri East,
    Mumbai, Maharashtra - 400 059
11. Prasanaata Vikram Patwardhan
    Office No.1, Sai Pooja CHS, Near Jan
    Kalyan Bank, Om Nagar, Andheri East,
    Mumbai, Maharashtra-400 059
12. Sunil Shyamsunder Chandwani
    101, Sudha Building, Corner of the 7th and
    12th Road, Near Gayatri Mandir, Khar
    West, Mumbai, Maharashtra-400 052
13. Aanchal Sunil Sadhnani
    101, Sudha Building, Corner of the 7th and
    12th Road, Near Gayatri Mandir, Khar
    West, Mumbai, Maharashtra-400 052
14. Manisha Shrinath Shorey
    Flat No.102, Okland Park, CHSL, Yamuna
    Nagar, Andheri West, Mumbai Maharashtra
    400 053
15. Vinod Nandlal Khanna
    101, Mathapati Meridean 5th Main, 6th
    Cross Near BGFI Club, Malleshpalya
    Bangalore North New Thippasandra
    Karnataka 560 075
16. Baldev Joginderpal Malhotra
    403/4, Citi Corner No. 1, Opp. Vijay Dairy,
    Sector 29, Navi Mumbai, Maharashtra 400
    703
17. Jitender Anantram Sabhlok
    B-603 Swarna Society, Plot No 13 and 14,

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      Sector 7, Kharghar, Navi Mumbai
      Maharashtra 410 210
18. Harish Jashanmal Khanna
    E-6/101, Happy Home Heights, Poonam
    Garden, Mira Bhayander, Thane 401 107
19. Shipra Navin Parwani
    8, Anand Villa, 4/283, Parwati Bagla
    Road, Tilak Nagar, Kanpur, Uttar Pradesh
    208 002
20. Vivek Jairamdas Makhija
    403 Sanskruti Apartment, Harish Nagar,
    Sikandra Agra, Uttar Pradesh 282 007
21. Pawan Nandlal Khanna
    5011 Sobha Palladian, Yemalur
    Kariayammana, Agrahara Road, Bangalore,
    Karnataka 560 037
22. Ahsaan Ashrafali Petkar
    02, Kanti Cooperative Housing Society,
    Plot No 45, Sector 14, Vashi, Navi Mumbai,
    Maharashtra 400 703
23. Shital Inder Khanna
    Upvan North Avenue Santacruz (West)
    Mumbai Maharashtra 400 054
24. Punit Inder Khanna
    Upvan North Avenue Santacruz (West)
    Mumbai Maharashtra 400 054
25. Romir Khanna
    Flat No. 10, 3rd Floor, Neel Nandini A
    CHS, 8th Road, Linking Road Corner, Khar
    West, Mumbai - 400 052
26. Hema Khanna
    Flat No. 10, 3rd Floor, Neel Nandini A CHS,
    8th Road, Linking Road Corner, Khar West,
    Mumbai – 400 025
27. Shweta Kumar
    Flat No. 10, 3rd Floor, Neel Nandini A CHS,
    8th Road, Linking Road Corner, Khar West,
    Mumbai - 400 052                            ….Respondents

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                             WITH
              INTERIM APPLICATION NO.6720 OF 2025
                              IN
                 WRIT PETITION NO. 3004 OF 2025

      Meghraj Financial Consultants Private
      Limited
      A Private Limited Company, the tenant of
      Unit Sr. No.39, having address at Khanna
      Construction House, Worli, Mumbai – 400
      018 and havint its current address at Ground
      floor, Navsari (KK) chambers, PT Marg, Frt
      Mumbai, Maharashtra, India – 400001          ….Applicant
IN THE MATTER OF :
1.    Nandlal Balkishan Sahjwani,
      Flat no. 22, 2nd floor, Mona Lisa, Boman
      Petit Road, Mumbai Maharashtra 400 036
2.    Shakuntala Balkishan Sahjwani
      alias Chandni Nanik Lulla,
      A2 Cosmos Society, 12/14, Boat Club Road,
      Pune, Maharashtra 411 001.                … Petitioners
                Versus
1.    Municipal Corporation of Greater Mumbai
      Mahapalika Marg, Fort, Mumbai,
      Maharashtra 400 001
2.    Deputy Municipal Commissioner (IMP.)
      Municipal Corporation Of Greater Mumbai
3.    The Assistant Commissioner (Estates)
      Municipal Corporation of Greater Mumbai,
      4th Floor Annex Building MCGM Head
      Office Mahapalika Marg CST, Mumbai,
      Maharashtra 400 001
4.    Asst. Assessor & Collector, G-South ward,
      Municipal Corporation Of Greater Mumbai
5.    Laxmi Rajkiran Grover
      Kaushalaya Bhawan B-25, Sophia School


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      Road, Vallabh Nagar, Kota, Rajasthan
      324 007
6.    Satish Anantram Sabhlok
      B-85, Vidhani Mountview, Plot No. 68,
      Sector-17, Vashi, Navi Mumbai,
      Maharashtra 400 703
7.    Surinder Anantram Sabhlok
      Flat No.1501, 15th floor, Vivaant, Plot No.
      04, Sector-19, Sanpada, Navi Mumbai,
      Maharashtra 400 705
8.    Ashrafali Ahmed Petkar
      02, Kanti Cooperative Housing Society,
      Plot No 45, Sector 14, Vashi, Navi
      Mumbai, Maharashtra 400 703
9.    Vikram Balkishan Sahjwani
      Flat no. 51, 5th floor, Mona Lisa, Boman
      Petit Road, Mumbai, Maharashtra 400 036
10. Saroj Khanna
    Office No.1, Sai Pooja CHS, Near Jan
    Kalyan Bank, Om Nagar, Andheri East,
    Mumbai, Maharashtra - 400 059
11. Prasanaata Vikram Patwardhan
    Office No.1, Sai Pooja CHS, Near Jan
    Kalyan Bank, Om Nagar, Andheri East,
    Mumbai, Maharashtra-400 059
12. Sunil Shyamsunder Chandwani
    101, Sudha Building, Corner of the 7th and
    12th Road, Near Gayatri Mandir, Khar West,
    Mumbai, Maharashtra-400 052
13. Aanchal Sunil Sadhnani
    101, Sudha Building, Corner of the 7th and
    12th Road, Near Gayatri Mandir, Khar West,
    Mumbai, Maharashtra-400 052
14. Manisha Shrinath Shorey
    Flat No.102, Okland Park, CHSL, Yamuna
    Nagar, Andheri West, Mumbai, Maharashtra
    400 053



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15. Vinod Nandlal Khanna
    101, Mathapati Meridean 5th Main, 6th Cross
    Near BGFI Club, Malleshpalya Bangalore
    North New Thippasandra, Karnataka 560
    075
16. Baldev Joginderpal Malhotra
    403/4, Citi Corner No. 1, Opp. Vijay Dairy,
    Sector 29, Navi Mumbai, Maharashtra 400
    703
17. Jitender Anantram Sabhlok
    B-603 Swarna Society, Plot No 13 and 14,
    Sector 7, Kharghar, Navi Mumbai,
    Maharashtra 410 210
18. Harish Jashanmal Khanna
    E-6/101, Happy Home Heights, Poonam
    Garden, Mira Bhayander, Thane 401 107
19. Shipra Navin Parwani
    8, Anand Villa, 4/283, Parwati Bagla
    Road, Tilak Nagar, Kanpur, Uttar Pradesh
    208 002
20. Vivek Jairamdas Makhija
    403 Sanskruti Apartment, Harish Nagar,
    Sikandra Agra, Uttar Pradesh 282 007
21. Pawan Nandlal Khanna
    5011 Sobha Palladian, Yemalur
    Kariayammana, Agrahara Road, Bangalore,
    Karnataka 560 037
22. Ahsaan Ashrafali Petkar
    02, Kanti Cooperative Housing Society,
    Plot No 45, Sector 14, Vashi, Navi Mumbai,
    Maharashtra 400 703
23. Shital Inder Khanna
    Upvan North Avenue Santacruz (West)
    Mumbai, Maharashtra 400 054
24. Punit Inder Khanna
    Upvan North Avenue Santacruz (West),
    Mumbai, Maharashtra 400 054



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25. Romir Khanna
    Flat No. 10, 3rd Floor, Neel Nandini A
    CHS, 8th Road, Linking Road Corner, Khar
    West, Mumbai - 400 052
26. Hema Khanna
    Flat No. 10, 3rd Floor, Neel Nandini A CHS,
    8th Road, Linking Road Corner, Khar West,
    Mumbai – 400 025
27. Shweta Kumar
    Flat No. 10, 3rd Floor, Neel Nandini A CHS,
    8th Road, Linking Road Corner, Khar West,
    Mumbai - 400 052                            ….Respondents

                             WITH
              INTERIM APPLICATION NO.7191 OF 2025
                              IN
                 WRIT PETITION NO. 3004 OF 2025

      Khanna Construction House Commercial
      Premises Co-operative society Limited
      (Proposed)
      a proposed society having, having its
      address at Plot No.44, Scheme 58 of Worli
      Division, CS No.903, situated at R.G.
      Thadani marg, Worli, Mumbai – 400 018
      through the hands of its duly authorized
      signatory Mr. Akash Gupta                 ….Applicant
IN THE MATTER BETWEEN :
1.    Nandlal Balkishan Sahjwani,
      Flat no. 22, 2nd floor, Mona Lisa, Boman
      Petit Road, Mumbai, Maharashtra 400 036
2.    Shakuntala Balkishan Sahjwani
      alias Chandni Nanik Lulla,
      A2 Cosmos Society, 12/14, Boat Club Road,
      Pune, Maharashtra 411 001.                … Petitioners
              Versus
1.    Municipal Corporation of Greater Mumbai
      Mahapalika Marg, Fort, Mumbai,
      Maharashtra 400 001

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2.    Deputy Municipal Commissioner (IMP.)
      Municipal Corporation Of Greater Mumbai
3.    The Assistant Commissioner (Estates)
      Municipal Corporation of Greater Mumbai,
      4th Floor Annex Building MCGM Head
      Office Mahapalika Marg CST, Mumbai,
      Maharashtra 400 001
4.    Asst. Assessor & Collector, G-South Ward,
      Municipal Corporation Of Greater Mumbai
5.    Laxmi Rajkiran Grover
      Kaushalaya Bhawan B-25, Sophia School
      Road, Vallabh Nagar, Kota, Rajasthan
      324 007
6.    Satish Anantram Sabhlok
      B-85, Vidhani Mountview, Plot No. 68,
      Sector-17, Vashi, Navi Mumbai,
      Maharashtra 400 703
7.    Surinder Anantram Sabhlok
      Flat No.1501, 15th floor, Vivaant, Plot No.
      04, Sector-19, Sanpada, Navi Mumbai
      Maharashtra 400 705
8.    Ashrafali Ahmed Petkar
      02, Kanti Cooperative Housing Society,
      Plot No 45, Sector 14, Vashi, Navi
      Mumbai Maharashtra 400 703
9.    Vikram Balkishan Sahjwani
      Flat no. 51, 5th floor, Mona Lisa, Boman
      Petit Road, Mumbai, Maharashtra 400 036
10. Saroj Khanna
    Office No.1, Sai Pooja CHS, Near Jan
    Kalyan Bank, Om Nagar, Andheri East,
    Mumbai, Maharashtra - 400 059
11. Prasanaata Vikram Patwardhan
    Office No.1, Sai Pooja CHS, Near Jan
    Kalyan Bank, Om Nagar, Andheri East,
    Mumbai, Maharashtra-400 059
12. Sunil Shyamsunder Chandwani
    101, Sudha Building, Corner of the 7th and

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      12th Road, Near Gayatri Mandir, Khar West,
      Mumbai, Maharashtra-400 052
13. Aanchal Sunil Sadhnani
    101, Sudha Building, Corner of the 7th and
    12th Road, Near Gayatri Mandir, Khar West,
    Mumbai, Maharashtra-400 052
14. Manisha Shrinath Shorey
    Flat No.102, Okland Park, CHSL, Yamuna
    Nagar, Andheri West, Mumbai, Maharashtra
    400 053
15. Vinod Nandlal Khanna
    101, Mathapati Meridean 5th Main, 6th Cross
    Near BGFI Club, Malleshpalya Bangalore
    North New Thippasandra, Karnataka 560
    075
16. Baldev Joginderpal Malhotra
    403/4, Citi Corner No. 1, Opp. Vijay Dairy,
    Sector 29, Navi Mumbai, Maharashtra 400
    703
17. Jitender Anantram Sabhlok
    B-603 Swarna Society, Plot No 13 and 14,
    Sector 7, Kharghar, Navi Mumbai,
    Maharashtra 410 210
18. Harish Jashanmal Khanna
    E-6/101, Happy Home Heights, Poonam
    Garden, Mira Bhayander, Thane 401 107
19. Shipra Navin Parwani
    8, Anand Villa, 4/283, Parwati Bagla
    Road, Tilak Nagar, Kanpur, Uttar Pradesh
    208 002
20. Vivek Jairamdas Makhija
    403 Sanskruti Apartment, Harish Nagar,
    Sikandra Agra, Uttar Pradesh 282 007
21. Pawan Nandlal Khanna
    5011 Sobha Palladian, Yemalur
    Kariayammana, Agrahara Road, Bangalore,
    Karnataka 560 037


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22. Ahsaan Ashrafali Petkar
    02, Kanti Cooperative Housing Society,
    Plot No 45, Sector 14, Vashi, Navi Mumbai,
    Maharashtra 400 703
23. Shital Inder Khanna
    Upvan North Avenue Santacruz (West)
    Mumbai, Maharashtra 400 054
24. Punit Inder Khanna
    Upvan North Avenue Santacruz (West)
    Mumbai, Maharashtra 400 054
25. Romir Khanna
    Flat No. 10, 3rd Floor, Neel Nandini A
    CHS, 8th Road, Linking Road Corner, Khar
    West, Mumbai - 400 052
26. Hema Khanna
    Flat No. 10, 3rd Floor, Neel Nandini A CHS,
    8th Road, Linking Road Corner, Khar West,
    Mumbai – 400 025
27. Shweta Kumar
    Flat No. 10, 3rd Floor, Neel Nandini A CHS,
    8th Road, Linking Road Corner, Khar West,
    Mumbai - 400 052                            ….Respondents

                              ****
Mr. Janak Dwarkadas, Senior Advocate a/w. Mr. Rohaan Cama,
Mr. Chirag Kamdar, Mr. Dhawal Mehta, Mr. Abinash Pradhan,
Ms. Garima Agrawal, Mr. Yash Dedhia and Ms. Priyanka Mehta i/b.
Wadia Ghandy & Co. for the Petitioners.
Mr. Aspi Chinoy, Senior Advocate a/w. Mr. Joel Carlos,
Ms. Vaishali Ugale for Respondent No.1- Municipal Corporation.
Mr. Girish Godbole, Senior Advocate a/w. Ms. Vaishali Ugale for
Respondent Nos.2 to 4.
Dr. Birendra Saraf, Senior Advocate a/w. Mr. Vaibhav C., Mr. Yash
Sheth, Mr. Dhavall Gandhy i/b. Mr. Tushar Goradia for the
Applicant in IA No.7191 of 2025.
Ms. Kausar Banatwala i/b. Mr. Tushar Goradia for the Applicant in
IA No.6720 of 2025.


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Mr. Mayur Khandeparkar a/w. Mr. Sandeep Singh for Respondent
Nos.15 to 21 and 25 to 27.
                                   ****
                      CORAM               : RAVINDRA V. GHUGE
                                                      &
                                            ABHAY J. MANTRI, JJ.

                      RESERVED ON              : 7th APRIL, 2026

                      PRONOUNCED ON : 8th MAY, 2026

JUDGMENT (PER : RAVINDRA V. GHUGE, J.)

1.              Rule. Rule made returnable forthwith and heard finally

by consent of the parties.



2.              The Petitioners are the two surviving partners of

M/s. Khanna Construction House (a dissolved firm), a partnership

firm which was a lessee in the land bearing Plot No.44, Worli Hill

Estate Scheme No.58 bearing C.S. No.903 of Worli Division, G/S

Ward, admeasuring 3718 square yards (hereinafter referred to as the

‘Writ Land’).



3.              The Petitioners have put forth ten prayers in the

Petition. The relevant prayers (a) to (e), read as under :

              (a) that this Hon'ble Court be pleased to issue a
              writ of certiorari or a writ in the nature of
              certiorari or any other appropriate writ, order or

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              direction calling for the records and proceedings
              culminating into the issuance of the Impugned
              Warrant of Attachment dated 10th June, 2024
              [Exhibit 'A' hereto and after going through the
              legality. validity and propriety thereof, the same
              be quashed and set aside.

              (b) that this Hon'ble Court be pleased to issue a
              writ of certiorari or a writ in the nature of
              certiorari or any other appropriate writ, order or
              direction calling for the records and proceedings
              culminating into the issuance of the Impugned
              Show Cause Notice dated 8th November, 2024
              [Exhibit 'B' hereto], Impugned 14th July, 2025
              Directions [Exhibit 'C' hereto] and the Impugned
              17th July, 2025 Order [Exhibit 'D' hereto] by the
              Respondent Nos.1 to 4; and after going through
              the legality, validity and propriety thereof, the
              same be quashed and set aside.

              (c) that this Hon'ble Court be pleased to issue a
              writ of mandamus or a writ in the nature of
              mandamus or any other appropriate writ, order or
              direction, directing Respondent Nos.1 to 4 to
              restore the possession of the said Land (defined in
              para. 1 above) to the Petitioners.

              (d) that this Hon'ble Court be pleased to issue a
              writ of mandamus or a writ in the nature of
              mandamus or any other appropriate writ, order or
              direction, directing the Respondent Nos.1 to 4 to
              approve and sanction the redevelopment of the
              said Land by the Petitioners.

              (e) that this Hon'ble Court be pleased to issue a
              writ of mandamus or a writ in the nature of
              mandamus or any other appropriate writ, order or
              direction, directing the Respondent Nos.1 to 4 to
              approve and sanction the list of the tenants who
              are required to be rehabilitated on the
              redevelopment of the said Land by the Petitioners.


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     ORAL & WRITTEN SUBMISSIONS OF THE PETITIONERS


4.                 The learned Senior Advocate, Mr. Dwarkadas has

tendered written notes of submissions in three parts. We summarize

the oral and written submissions of Mr. Dwarkadas, as under :

         (a)            The partnership firm was incorporated on

         01.08.1962. The following six persons were the partners of

         the said firm :

              1)        Saligram Gurdasmal Khanna
              2)        Jashanmal Saligram Khanna
              3)        Nandlal Jashanmal Khanna
              4)        Inder Jashanmal Khanna
              5)        Balkishan Jiwandas
              6)        Nandlal Balkishan Sahjwani (Petitioner No.1)

         (b)            The Respondent No.1, Municipal Corporation

         entered into a registered lease deed with the firm on

         14.07.1965 for a period of 999 years w.e.f. 12.01.1961

         (retrospective effect) along with the building standing

         thereon, known as Khanna Construction House. Possession

         of the land was given on 18.01.1961.


         (c)            The construction of the building was completed

         and a completion certificate was granted by the Corporation

         on 28.12.1964, with the following conditions :


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               i.     Agreement to pay all the rent and taxes of the

               above land.


               ii.    To carry out the repair of the premises and to

               keep it in a good condition.

               iii.   Not to colour paint or white wash any

               Porebunder stone-work for the time being on the

               demised premises.


               iv.    Any breach of any of the conditions or of the

               covenants on the part of the lessee, the Corporation

               may re-enter upon the said premises or any part of the

               said premises and immediately thereupon all rights of

               the lessees hereunder shall be absolutely determined

               (terminated/extinguished).


         (d)          In October1965, Ghanshyam Saligram Khanna

         and Shakuntala Balkishan Sahjwani alias Chandni Nanik

         Lulla (Petitioner No.2 herein), were admitted in the firm as

         partners.


         (e)          Petitioner No.1, i.e., Nandlal Balkishan Sahjwani

         instituted Suit No.1010 of 1973 against the other partners of

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         the firm in the High Court, praying for dissolution of the

         firm and for determination of accounts.


         (f)        This Court appointed a Court Receiver on

         10.10.1973 in respect of the land and the building. The Court

         Receiver was put in possession of the land and the building.

         Subsequently, the said suit was transferred to the City Civil

         Court at Bombay on account of enhancement in pecuniary

         jurisdiction and was renumbered as Suit No.110318 of 1973.

         The suit was decreed on 20/08/2018 and the partnership firm

         was dissolved.


         (g)        The Corporation issued a notice under Section

         354 of the Mumbai Municipal Corporation Act, 1888 (for

         short   ‘MMC Act’),       on     15.06.2018,   to   the   Court

         Receiver/Occupants of the said building, classifying the

         building as a dangerous dilapidated structure and directing

         demolition of the same.


         (h)        On 20.08.2018, the firm was dissolved by a

         decree passed by the City Civil Court with the directions that

         the affairs of the said firm be wound up and the Court

         Receiver was directed to realize the assets and debts of the

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         said firm with the shares of the partners to be ascertained.


         (i)        Ghanshyam Saligram Khanna, a partner in the

         firm, preferred First Appeal No.1912 of 2024 (old number -

         First Appeal (St) No.31064 of 2018), on 26.10.2018. The

         First Appeal was registered on 06.12.2024 and the same is

         pending final adjudication.


         (j)        On 28.08.2020, Respondent No.4, Assistant

         Assessor and Collector, G-South Ward issued a letter to the

         Court Receiver in respect of the outstanding property tax for

         the Writ Land and the building, for an amount of

         Rs.3,42,81,922/-.


         (k)        The Court Receiver filed a report bearing CRR

         No.14 of 2021 dated 20.11.2021 in the First Appeal seeking

         direction from this Court with respect to the action of

         Municipal Corporation of Greater Mumbai (‘MCGM’) in

         appointing a contractor for demolition of the building.


         (l)        By order dated 09.12.2021 passed by this Court

         in CRR No.14 of 2021, the Corporation was directed to be

         impleaded as a party in the First Appeal.



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         (m)        The tenants of the building filed an Interim

         Application (L) No.2775 of 2022 on 29.01.2021, seeking to

         intervene in CRR No.14 of 2021. This Court passed an order

         on 08.06.2022 on the Interim Application allowing the

         tenants to intervene in CRR No.14 of 2021.


         (n)        In view of the order passed by this Court the

         Court Receiver was directed on 07.07.2022, to handover the

         possession of the building to the Corporation for carrying

         out the demolition. The Petitioners were directed to convey

         their decision regarding redevelopment or reconstruction to

         the Corporation within a period of six weeks.


         (o)        The First Appeal Court passed another order on

         19.07.2022, clarifying the time given to the MCGM vide

         order dated 07.07.2022, as six months.


         (p)        The Corporation demolished the said building

         after all the tenants/occupants vacated their respective

         premises, in September-2022.

         (q)        On 06.01.2023, Petitioner No.1 conveyed to

         Respondent No.3 that this Court had ordered on 07.07.2022



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         that the Corporation should demolish the said building and

         had directed the Court Receiver to handover the possession

         of the building to the Corporation. In response to the First

         Appeal Court recording that the owners of the building may

         agree to redevelop, Petitioner No.1 conveyed his willingness

         to the Corporation to redevelop the land.


         (r)        The two Petitioners and the LRs. of the other

         partners addressed a letter dated 10.04.2023 to the Court

         Receiver highlighting the steps taken by the Petitioners

         towards the development and indicating their readiness and

         willingness to redevelop the said land. It is canvassed that,

         hence, no other developer had the locus to develop the land.


         (s)        Respondent No.4 informed the Court Receiver on

         10.04.2024 that the property tax in respect of the Writ Land

         amounting to Rs.9,80,18,624/- as on 31.03.2023, was

         outstanding and requested the Court Receiver to pay the said

         outstanding amount within 21 days failing which the action

         of recovery would be initiated under the provisions of the

         MMC Act.




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         (t)        The Petitioners intimated the Court Receiver vide

         letter dated 10.04.2024 that the property tax ought to be

         disbursed by the Court Receiver from the rents/outgoings

         paid by the occupants/tenants to the Court Receiver. It was

         also contended that the demand for property tax after 2022

         was untenable because the building stood demolished in

         2022.


         (u)           Respondent No.4 issued the impugned warrant

         of attachment dated 10.06.2024 under Sections 202 and 203

         of the MMC Act for the outstanding property tax amount of

         Rs.8,39,82,176/- for the period 01.04.1984 to 31.03.2024.


         (v)        The Petitioners and the LRs. of other partners of

         the firm addressed a letter dated 20.06.2024, requesting the

         Court Receiver to file his report as regards the attachment

         notice issued by the BMC before the F.A. Court and seek

         directions thereon.


         (w)        The Corporation addressed a letter dated

         06.11.2024 to the Court Receiver demanding payment of the

         outstanding    amount   including   the   penalty,   totaling



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         Rs.11,04,77,097/- upto 31.03.2025.


         (x)         Respondent No.3, the Assistant Commissioner

         Estates addressed a letter dated 08.11.2024 to the Advocates

         of the Petitioners, intimating that the Petitioners proposal for

         redevelopment was rejected for the reason that the said firm

         was declared as dissolved and restricted from creating third

         party rights in the said property.

         (y)         Respondent     No.2,      the      Deputy    Municipal

         Commissioner (IMP) issued the impugned show-cause

         notice dated 08.11.2024 to the Petitioners and the LRs. of

         other partners, calling upon them to show-cause as to why

         the lease deed dated 14.07.1965, should not be terminated on

         the grounds set out in the notice.

         (z)         The    Petitioners,      through     their   Advocates

         deposited a cheque dated 21.11.2024 for a sum of

         Rs.3,71,488/- towards the arrears of lease rent to Respondent

         No.3.


         (aa)        On 22.11.2024, the Petitioners through their

         advocates informed Respondent No. 3 that their letter dated



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         21.11.2024 depositing a cheque for a sum of Rs.3,71,488/-

         was refused to be accepted and the same is now being sent

         through RPAD.


         (bb)        Petitioner No. 1 challenged the Rejection of

         Proposal dated 08.11.2024, on 28.11.2024, by way of an

         Interim Application bearing Interim Application No. 15575

         of 2024 filed in the First Appeal.


         (cc)        On 02.12.2024, Advocates for the Petitioners

         replied to the impugned show-cause notice.


         (dd)        The Administrative       Officer    (Lease)    Estate

         Department of MCGM addressed a letter dated 18.12.2024

         to the Advocates of the Petitioners thereby refusing to accept

         the payment for the lease rental sought to be paid under

         letter dated 21.11.2024 for reasons set out in the letter .


         (ee)        On 24.12.2024, the Petitioners replied to the

         letter dated 18.12.2024 through their Advocates and stated

         that the Petitioners are the two original partners of the said

         firm. Further, Respondent No.1 is a party to the proceedings

         of First Appeal wherein the LRs. of deceased partners have

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         been brought on record. The Petitioners therein once again

         sent a cheque for a sum of Rs.3,71,488/-.


         (ff)       The FA Court passed an order dated 08.01.2025

         in Interim Application No. 15575 of 2024 filed in First

         Appeal, recording that the Corporation has intimated that the

         applicant lease will be terminated as the entire proposal has

         not been submitted within the period prescribed (six months)

         by this court in order dated 07.07.2022. The Applicant

         submitted that the proposal have been submitted to the office

         of the Court Receiver and a common proposal will be

         submitted before this court within a period of three weeks

         from the date of this order. Accordingly, the FA Court

         observed that no coercive steps should be taken in

         furtherance to the impugned show-cause notice till the next

         date.


         (gg)       The Petitioners along with Respondent Nos.5 to

         11 and Respondent Nos. 22 to 24, signed declaration dated

         28.01.2025 conveying their intention to redevelop the said

         Land and the same was filed before the FA Court.




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         (hh)       The    Petitioners,      through      their   Advocates,

         addressed a letter dated 27.02.2025 to the Administrative

         Officer (Lease) Estate Department of MCGM, calling upon

         the officer to accept the payment of lease rentals.


         (ii)       Petitioner   No.1        filed   an    affidavit    dated

         13.03.2025 in the Interim Application No. 15575 of 2024

         before the FA Court reiterating its readiness and willingness

         to redevelop the said Land.


         (jj)       Petitioner No.1 filed an Interim Application (St.)

         No. 12546 of 2025 dated 03.04.2025 in the First Appeal,

         inter alia, seeking directions to the Court Receiver to

         disclose the statement of accounts and to utilize the funds

         that have matured pursuant to the Fixed Deposits and pay

         the concerned departments towards property tax.


         (kk)       On 17.03.2025, the Court Receiver filed a Report

         bearing CRR No. 15 of 2025, in the First Appeal.


         (ll)       On 03.04.2025, Petitioner No.1 filed another

         Interim Application (St.) No. 12547 of 2025 dated

         15.03.2025 in the First Appeal, inter alia, seeking directions

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         for handover of possession of the said Land to the Court

         Receiver. The     said      Interim Application   is   pending

         adjudication.


         (mm)       On 22.04.2025, Respondent No.3 addressed a

         letter to the advocate of the Petitioners reiterating that the

         payment of the lease rental cannot be accepted on the ground

         that the said Firm has been dissolved and the matter is sub

         judice before this Court.

         (nn)       The FA Court passed an order dated 09.06.2025

         in First Appeal with CRR No. 13 of 2025 and other Interim

         Applications thereby summarily discharging the Court

         Receiver without passing the accounts, vacating the stay on

         the impugned Show Cause Notice and directing that any

         partner party/ occupant/ tenant can submit a proposal of

         redevelopment and MCGM shall consider the said proposal

         and decide on its merit.


         (oo)       Petitioner No.1 and Respondent No.5 to 9

         challenged the order of FA Court dated 09.06.2025, in SLP

         (C) No. 17680 of 2025 before the Hon’ble Supreme Court.

         The said SLP is dismissed on 25.08.2025.

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         (pp)       On 27.06.2025, a hearing was conducted by

         Respondent No.1 regarding the impugned show-cause

         notice.

         (qq)       Respondent No.2 passed the speaking order dated

         14.07.2025 concluding that the impugned show-cause notice

         dated 08.11.2024 is justified and directed Respondent No.3

         to initiate the process for the termination of the Lease dated

         14.07.1995.


         (rr)       Petitioner No.1 issued a letter dated 17.07.2025

         to Respondent No.2 tendering two demand drafts of

         Rs.11,04,77,097/- and Rs. 3,71,488/- in favour of Asst.

         Assessor & Collector G/South Ward BMC (Respondent

         No.4) and Asst. Commissioner (Estate) BMC (Respondent

         No.3) respectively. The Petitioner also requested thereby to

         revoke the impugned speaking order dated 14.07.2025 and

         to not take steps in furtherance thereof.


         (ss)       The Respondent No.3 issued the impugned order

         dated 17.07.2025, thereby terminating the Lease dated

         14.07.1995.



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         (tt)         The Hon’ble Supreme Court passed an order

         dated 25.08.2025 dismissing the SLP (Civil) No. 17680 of

         2025.


         (uu)         The City Civil Court passed an order dated

         06.01.2015 in Suit No. 10318 of 1973, thereby observing

         that the rental income from tenants/occupants of the said

         building will not be sufficient for the dues payable and

         directed Petitioner No.1 to pay costs charges and expenses to

         the Court Receiver.


         (vv)         On 17.07.2025, the Corporation addressed a

         letter to Petitioner No. 1 thereby returning the demand drafts

         submitted by the Petitioner on the following grounds (as

         stated on affidavit):

              1.       The payments were made only after the
              passing of the Speaking Order dated 14.07.2025
              and at the very threshold of termination, such
              belated payments cannot cure the defaults or
              invalidate proceedings lawfully conducted by the
              Respondents.

              2.       Demand Drafts submitted by the
              Petitioners were not drawn in the proper name of
              the Respondent Corporation, but in the name of
              individual officer designation, and therefore
              could not be deposited or encashed.



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              CONTENTIONS OF RESPONDENT NO.1 TO 4

5.             The oral and written submissions of Respondent nos.1

to 4 (Corporation authorities), advanced by the learned Senior

Advocates Mr. Aspi Chinoy and Mr. Godbole, are summarised as

under :-

         (a)        Insofar as the factual details as regards the two

         Petitioners, their partnership firm, the lease of 999 years, the

         dispute inter se the partners, the dissolution of the

         partnership firm etc., are undisputed. The date of submission

         of the willingness to develop, is disputed on the ground that

         the Petitioners belatedly tendered a back-dated letter

         06.01.2023 to the Corporation on 17.01.2023.


         (b)        This Court appointed a Court Receiver for the

         Writ Land and building in 1973. Due to pecuniary

         jurisdiction, the matter was transferred to the City Civil

         Court in 2012.


         (c)        The dissolution of the partnership firm by

         Judgment and degree dated 20.08.2018 before the City Civil

         Court, is undisputed.




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         (d)        The Court Receiver was directed to realize and

         distribute the assets amongst the Petitioners.


         (e)        One of the partners Mr. Ghanshyam Khanna had

         challenged the preliminary decree.


         (f)        The MCGM had issued the notice dated

         15.06.2018 under Section 354 of the MMC Act directing

         demolition of the building being in a dilapidated and

         dangerous condition.


         (g)        The Court Receiver received a notice dated

         28.08.2020 in respect of the outstanding property tax dues

         amounting to Rs.3,42,81,922/-.


         (h)        By order dated 07.07.2022, the First Appeal

         Court recorded that the building was unfit for habitation and

         all the tenants had already vacated their premises.



         (i)        The First Appeal Court ordered the demolition of

         the building and granted liberty to the owners to

         redevelop/reconstruct the building by conveying their

         decision to the Corporation within six weeks.

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         (j)        The Corporation demolished the building in the

         month of September 2022.


         (k)        Some of the partners/their legal heirs addressed a

         back-dated letter dated 07.01.2023 to the Corporation

         agreeing to develop the building, by serving it on the

         Corporation on 17.01.2023.


         (l)        In January and March, 2023, the Corporation

         received letter from Avighna Group which stated that they

         had the support of 24% of the partners and were willing to

         undertake the redevelopment of the building.


         (m)        On 22.05.2023, the Avighna Group addressed a

         letter to the Court Receiver reiterating their willingness to

         undertake the redevelopment and also forwarded the letter to

         the Advocates of some of the partners/legal heirs.


         (n)        A letter dated 06.06.2023 was addressed by the

         Advocates to the Court Receiver and the MCGM stating that

         they represented 87% of the partners and a fresh lease

         should be granted to them to enable them to carry out the

         redevelopment.


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         (o)        By letter dated 10.04.2024, the MCGM had

         informed the Court Receiver that the arrears of property

         taxes from 2008 had aggregated to Rs.8,39,82,176/-.


         (p)        By letter dated 08.05.2024, the said Advocates

         disputed the demand for property taxes.


         (q)        In these circumstances the MCGM issued a

         Notice dated 10.06.2024 attaching the property for arrears of

         property taxes.


         (r)        By a letter dated 06.11.2024, the MCGM

         informed the Court Receiver that the arrears of property

         taxes had increased to Rs.11,04,77,097/-.


         (s)        By a letter dated 08.11.2024, the MCGM

         informed the said Advocate of some of the partners/ legal

         heirs that their proposal for redevelopment was rejected as it

         was not made by all the partners/ legal heirs and was also

         not supported by 51% tenants.


         (t)        In view of the failure of the partners/ heirs of

         deceased partners [i.e. 100%], to collectively submit a


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         Redevelopment Proposal supported by 51% of the tenants,

         the MCGM acting in pursuance of the order dated

         07.07.2022 passed by the Single Judge, and having regard to

         the need to enable redevelopment for the tenants, issued a

         Notice dated 08.11.2024 requiring the Partners and legal

         heirs of partners to show cause as to why the lease should

         not be terminated.


         (u)        A few of the partners / legal heirs of partners

         filed an Interim Application No.15575 of 2024 in the said

         First Appeal stating that they would “submit a common

         proposal before the Court within a period of three weeks

         from today as regards the redevelopment of the subject

         property”. On this basis, this Hon’ble Court, by its order

         dated 08.01.2025, adjourned the matter for three weeks and

         directed that till then no coercive steps should be taken.



         (v)        The same group of partners / legal heirs

         submitted to the MCGM declarations regarding their

         willingness to undertake redevelopment. However these

         declarations were not made collectively by all the partners



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         and were also not supported by 51% of the tenants.


         (w)           By an order dated 09.06.2025 passed in the First

         Appeal proceedings, the learned Single Judge of this Court

         held that :

              i. despite the Court having given the partners two
              opportunities to redevelop the property, they had
              failed to take collective steps to redevelop the said
              property and had accordingly not complied with
              the orders of the Court dated 7th July, 2022 and
              8th January, 2025.

              ii. that the tenants occupants of the building
              whose interests were of paramount importance
              have been out of their premises for seven years.

              iii. that the firm / partners have not paid the
              property tax of the suit property which runs in
              crores of rupees. In spite of a warrant of
              attachment of suit property being issued by the
              MCGM, no partners have deposited the said tax

              (iii) The Court accordingly discharged the Court
              Receiver and also vacated the order dated 8 th
              January, 2025 which had directed that no coercive
              steps should be taken.

              The relevant paragraph no.12 of the said order
              provided :
              12. It shows that two orders of this Court dt
              7.7.2022 and 8.1.2025 have not been complied by
              the partners/ parties. The tenants/occupants of the
              suit property are out of their so while deciding
              premises for more than seven years... the issue in
              present appeal, this Court cannot deprive the
              rights of occupants/tenants of the suit property
              who are out of their premises for more than seven


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              years. The interest of the occupants / tenants is of
              para mount importance. As observed earlier, the
              partners of the dissolved firm have not taken
              collective efforts to redevelop the property as
              directed by this Court in the year 2022 and in Jan
              2025 ..In my view, to protect the interest of the
              partners, this Court has given two opportunities to
              the partners to redevelop the suit property but it
              has not been complied. Moreover, there is no stay
              to the order of City Civil Court and as per
              direction of City Civil Court, all partners were
              directed to give account of partnership to the
              Court Receiver but they failed to give accounts of
              partnership firm. They have not paid the property
              tax of the suit property which runs in crores of
              rupees. A warrant of attachment of suit property
              was issued by the MCGM due to non payment of
              property tax. In spite of aware of this fact, no
              partners have deposited the said tax and even they
              have not claimed partnership record from
              MCGM. It shows their reluctance in partnership
              firm. It appears that the partners only want to
              claim share in suit property but do not want to
              follow the orders of this Court. They have
              avoided the responsibility of paying taxes and
              redevelopment of the suit property. It appears that
              there is internal dispute between them. The
              possession of suit property is given to the MCGM
              as per order of this Court. The said order has not
              been challenged. The MCGM wants to redevelop
              the suit property as per procedure of law and to
              protect the rights of occupants / tenants as
              directed by this Court. Accordingly, termination
              of lease notice is issued. As discussed above, suit
              property is no longer in possession of the Court
              Receiver. All records pertaining to the suit
              partnership firm is with MCGM hence the Court
              Receiver cannot be continued with the suit
              property. It is contention of learned Senior
              Counsel for MCGM that interim order passed by
              this Court to termination of lease notice is causing


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              prejudice to the MCGM. As observed earlier, the
              applicant in said application has not submitted
              redevelopment proposal within three weeks as
              assured to this Court hence interim relief granted
              by this Court cannot be continued. Moreover, in
              termination of lease notice 15 days time is given
              to the parties to submit the say, without
              submitting the say the applicant has approached
              this Court. The concerned parties can file reply to
              it, if direction is given to MCGM to consider say
              and submission made by concerned parties and
              take action on above notice would suffice.
              Considering above reasons, I pass following
              order :
                                   ORDER

              i. The Court Receiver appointed by this Court is
              discharged without passing of accounts and upon
              payment of costs, charges and expenses. All
              available records if any, with Court Receiver
              regarding the suit property be handed over to
              MCGM within two weeks.

              ii. The Court Receiver's Report is allowed in
              terms of prayer clauses (a), (b) and (d). The
              claims raised by the four workmen through Union
              are allowed and Court Receiver is directed to
              disburse the amount to the workmen from the
              amounts lying in the suit account. Thereafter, the
              balance amount, if any, in the suit account be
              deposited before this Court. The Court Receiver
              Report No. 13 of 2025 stands disposed of.

              iii. The direction given by this Court to MCGM
              dated 08.01.2025, no coercive steps in respect of
              suit property be taken is vacated and I.A. No.
              15575 of 2024 is disposed off.

              iv. If any partner/party/occupants / tenants
              including current tenants / occupants submit a
              proposal of redevelopment including the parties


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              who had earlier submitted proposal in respect of
              redevelopment of the suit property, the MCGM
              shall consider the said proposals and decide on its
              own merit as per procedure of law. The MCGM
              shall consider the list of occupants/tenants
              prepared by the Court Receiver and MCGM and
              current occupants / tenants and decide their claims
              on its own merit and inform them accordingly.


         (x)          On 27.06.2025, a hearing was conducted by the

         MCGM. Thereafter, by a detailed speaking order dated

         14.07.2025, the Corporation came to a conclusion that the

         show cause notice dated 08.11.2024 is justified and directed

         Respondent No.3 to initiate the process for termination of

         the lease deed.


         (y)          The Order notes that :


                      The proposals received from North Star Homes P
         Ltd submitted by partners legal heirs having 22.86% shares
         and the Proposal submitted by the said Advocates supported
         by 80% of the partners / legal heirs, had both been refused
         by the Corporation vide its letters dated 08.11.2024 as they
         were not submitted by all [100%] of the partners / legal heirs
         of partners.

                     That, there appeared to be a dispute between the
         partners/legal heirs of partners regarding the proposed
         redevelopment of the property and that consequently they
         were unable to submit a collective proposal [by all the
         partners/ legal heirs of partners] for redevelopment,




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                      Accordingly despite repeated opportunities being
         given no proposal for redevelopment had been received from
         all the partners / legal heirs of the partners.

                     The Hon’ble Court's order dated 09.06.2025 had
         in fact held that “As observed earlier, the partners of the
         dissolved firm have not taken collective efforts to redevelop
         the property as directed by this Court in the year 2022 and in
         Jan 2025. In my view, to protect the interest of the partners,
         this Court has given two opportunities to the partners to
         redevelop the suit property but it has not been complied.
                     Arrears of property taxes from 2008 amounting
         to Rs.8,39,82,176/- had remained outstanding and the
         Corporation had issued warrant of attachment under Section
         206.

                    That the Hon’ble Court's order dated 09.06.2025
         had provided that “this Court cannot deprive the rights of
         occupants/tenants of the suit property who are out of their
         premises for more than seven years. The interest of the
         occupants/tenants is of paramount importance.”

                     By not maintaining / repairing the building
         [resulting in it being required to be demolished by the
         Corporation under the orders if the Hon’ble Court] and by
         not paying lease rentals and property taxes, the lessees had
         committed breaches of the Lease Deed.

                    The Corporation was accordingly required to
         move forward to secure the interest of the tenants/ occupants
         as had been provided in the Court's order dated 09.06.2025.

                    That the corporation was entitled to evict the
         lessee under Section 105(B), but in the present case no
         eviction was required as the property was already in
         possession of the Corporation under the Court’s orders.

                     Accordingly the order directs the Assistant
         Commissioner Estates to initiate the process for termination
         of the lease granted by the Lease Deed dated 14.07.1965.


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         (z)        Pursuant to the order dated 14.07.2025, the

         Assistant Commissioner, Estates, by his order dated

         14.07.2025, terminated the lease granted by the Lease Deed

         dated 14.07.1965.


         (aa)       On 17.07.2025, Petitioner No.1 for the first time

         tendered a demand draft for Rs.11,04,77,097/- for the arrears

         of property taxes from 2008.


         (bb)       It is submitted that in the aforesaid facts and

         circumstances, the Petitioners’ allegation that the warrant of

         attachment, the Show Cause Notice, the order dated

         14.07.2025 and the order dated 17.07.2025, are bad, are

         unsustainable.


                    Mr. Chinoy has further countered the Petitioners

         grounds as under :

         (cc)       Are contrary to the provisions of law, arbitrary

         and unreasonable and without application of mind.


         (dd)       That the Petitioners had paid Rs.11,04,77,097/-

         only after the termination of the lease deed.




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         (ee)       That the Petitioners were in breach of the order

         dated 07.07.2022 as they had made a proposal for

         redevelopment belatedly beyond the time-line granted by the

         Single Judge and the Corporations rejection thereof on the

         ground that it was not made by all partners/ heirs of partners,

         was appropriate in law.


         (ff)       That reliance on the order dated 07.07.2022 to

         initiate termination of the lease was correct and appropriate.


         (gg)       That Respondent Nos.1 to 4's conclusion that the

         lessees had not conducted timely repairs of the building was

         based on material / evidence and was supported by the fact

         that the Building had been declared structurally dangerous

         and required to be demolished.


         (hh)       Regarding the Petitioners allegation that the

         Corporations acts of issuing the orders for termination of the

         lease, are arbitrary, unreasonable as the Petitioners had

         complied with the order dated 07.07.2022 and had submitted

         a proposal for redevelopment, the Corporation submits that:


                (i) The order of this Honble Court dated


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              07.07.2022 had clearly provided that “If the all

              owners        fail       to     take       the     decision     to

              redevelop/reconstruct the building within a

              period of six weeks, the Corporation shall be at

              liberty to take over the land from the owners by

              protecting the rights of the tenants/occupants.”

              This direction was disobeyed.


              (ii) The Petitioners have not challenged the said

              order    dated 07.07.2022 and the same has

              become final and binding. The Petitioners,

              therefore, cannot be heard to contend that the

              Corporation could not act on the same to

              terminate the lease.


              (iii)   The      petitioners           had       admittedly   not

              submitted            a        collective         proposal     for

              redevelopment supported by all the partners

              /legal heirs of the deceased partners and the

              Corporation, therefore, could not have accepted

              such a Proposal.




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                (iv) This Court has, by its order dated

                09.06.2025, held that despite the Court having

                given     the   partners       two   opportunities    to

                redevelop the property, they had failed to take

                collective steps to redevelop the said property

                and that they had accordingly not complied with

                the orders of the Court dated 07.07.2022 and

                08.01.2025.



                (v) The Petitioners cannot be heard to contend

                that the Corporation could not have rejected

                their Proposal for redevelopment as it was not a

                collective proposal made by all the partners/

                heirs of the deceased partners, and that they had

                complied with the orders dated 07.07.2022 and

                07.01.2025.


         (ii)           In fact, the said partnership firm having been

         dissolved, it is a matter of law that a dissolved partnership

         firm cannot undertake the redevelopment of the demolished

         building and it was only in view of the Honble Court’s order



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         dated 07.07.2022, that the Corporation was willing to accept

         a collective Proposal for redevelopment, if made by all the

         partners/ heirs of deceased partners.


         (jj)       Since the Partners/ heirs of deceased partners

         failed to submit a collective proposal for redevelopment, the

         Corporation was necessarily required to proceed further to

         take over the land/terminate the lease to protect the interest

         of the tenants occupants who had been out of their premises

         since 2018 [for the past seven years] and who otherwise did

         not have any prospect of being rehabilitated by re-

         development of the demolished building.


         (kk)       In these circumstances, the Corporation was

         required to take steps for termination of the lease, as per the

         leave granted by the Court.


         (ll)       It is submitted that the Petition should not be

         entertained as it will otherwise prevent the timely

         rehabilitation of the tenants/occupants who have already

         been out of their premises for 7 years.




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         (mm) The Petitioners’ apparent/evident failure to maintain

         and keep the building in good condition, is ex facie evident

         from the fact that the Corporation had issued a Section 354

         Notice and that the Corporation was required to demolish the

         building pursuant to this Hon’ble Court’s order dated

         07.07.2022.


         (nn) That property taxes had remained unpaid from 2008,

         resulting in the Corporation issuing the Warrant of

         Attachment. After termination of the lease, the Petitioners

         tried to create a make-believe picture that the taxes are being

         paid.


         (oo)       Even during the hearing before the Deputy

         Municipal Commissioner on 27.06.2025 [as recorded in the

         order dated 14.07.2025], the Petitioners had not paid /

         offered to pay the property taxes of Rs.11,04,77,097/- [due

         from 2008] and had alleged that the same was “excessive,

         unlawful and unreasonable”.


         (pp)       Only after the order dated 14.07.2025 directing

         the termination of the lease, did the Petitioners deposit the



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         amount of Rs.11,04,77,097/- on 17.07.2025.



                 SUBMISSIONS FOR THE SOCIETY


6.             Dr. Birendra Saraf, learned Senior Advocate has

tendered his oral and written submissions on behalf of the Applicant

Khanna Construction House Commercial Premises Co-operative

Housing Society (the Society), as under :


         (a)        The sequence of dates and events have not been

         disputed. If the terms and conditions of the lease agreement

         are breached, termination of the lease cannot be arbitrary.

         The Petitioners have failed in the payment of taxes from

         2008 onwards.



         (b)        After the partnership firm was dissolved, the

         learned Single Judge in the order dated 07.07.2022 (Stamp

         No.31064 of 2018) in the First Appeal, recorded in the last

         Paragraph No.5 that the owners of the building should agree

         to reconstruct/redevelop the building and should convey

         their decision within a period of six months to the

         Corporation. If they fail to do so within six months, the


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         Corporation shall be at liberty to take over the land from the

         owners, by protecting the rights of the tenants/occupants. Dr.

         Saraf contends that since this was done by the Corporation

         in the backdrop of the breach of the lease agreement by the

         Petitioners, the termination of the lease cannot be branded as

         being arbitrary.



         (c)        The Judgment dated 09.06.2025 delivered by the

         learned Single Judge in First Appeal No. 1912/2024, has

         dealt with the said issue and it is concluded that the breach is

         established.



         (d)        The partners of the dissolved firm are divided in

         two factions. The Petitioners and Respondent Nos. 5 to 14

         and 22 to 24 are claiming 91.91% rights in the subject

         property. They have on 06.01.2023 submitted a proposal for

         redevelopment. On the other hand, Respondent Nos. 15 to

         21 and 25 to 27 are claiming 24.61% rights and opposing the

         Petition stating that no rights survive and no liabilities

         (through self-redevelopment) can be created by virtue of

         dissolution of the firm.


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         (e)         One North Star Homes Private Limited (Avighna

         Group) has also submitted a proposal for redevelopment of

         the subject property on 05.01.2023 along with a letter dated

         04.01.2023 by legal heirs of few partners of the firm

         claiming to have 22.86% entitlement of the leasehold

         property.


         (f)         Other proposals were also received from K

         Raheja Realty Group and Suvidha Group.


         (g)         The BMC on 08.11.2024, rejected all the

         proposals inter alia on the ground that the proposals are not

         backed by 51% consent of the tenants. As regards the

         proposal submitted by the erstwhile partners of the said firm,

         these were also rejected on the ground that the same was not

         submitted by all 100% of the members of the partnership

         firm.


         (h)         On 08.11.2024, the BMC issued a show-cause

         notice to the partners and legal heirs of few partners for

         termination of the lease.




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         (i)        On 09.06.2025, the High Court passed an order

         noting that the building had been demolished and the

         tenants/occupants had not been rehabilitated as a result of

         which the tenants are out of their premises. The Court

         noticed that the partners of the firm had not taken collective

         efforts to redevelop the property despite being given two

         opportunities. Discharging the receiver, the High Court

         observed that the redevelopment ought to be carried out and

         the rights of the tenants/occupants ought to be protected.


         (j)        On     14.07.2025,        read   with    letter    dated

         17.07.2025, the BMC terminated the lease.


         (k)        In Court Receiver filed Report No. 13 of 2025

         seeking discharge, the High Court heard the tenants. By an

         order dated 09.06.2025, the Bombay High Court noticed

         various defaults on the part of the lessees to collectively take

         steps to redevelop the building. The Court discharged the

         Court Receiver. In this order as well, the Court observed that

         the rights of the occupants/tenants of the suit property cannot

         be deprived. Even at this stage, the tenants were before the

         Court.


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         (l)         In the present petition, some of the partners of

         the partnership seek to challenge the termination of the lease

         by MCGM. As a result of the defaults on the part of the

         lessees/such partners, the tenants are prejudicially affected

         and therefore, the Applicant Society of Tenants is entitled to

         be impleaded and be heard in the present Petition.


         (m)         It is apparent from the said orders that the rights

         of tenants/occupants have been recognized by this Hon’ble

         Court in these orders. Accordingly, the Applicants ought to

         be impleaded as parties in the present Writ Petition as they

         are proper and necessary parties for the adjudication of the

         dispute in the present petition.


         (n)         It is evident that the Petitioners are concerned

         solely with the monetary value of the underlying land,

         whereas the members of the Applicant proposed society

         comprise long-standing tenants and occupants whose very

         livelihood depend on the timely redevelopment of the

         demolished property. The displacement for several years,

         coupled with the Petitioner's continued obstructions,

         underscores that the real and immediate prejudice is suffered


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         by the tenants, not the Petitioners who are engaged in

         disputes purely over financial entitlement for over 52 years.


         (o)            The Petitioner does not have locus to file the

         present Petition for the following reasons:


               (i)      On 20.08.2018, the City Civil Court

               passed a decree for the dissolution of the said

               Firm. Though there is a First Appeal, the decree

               of dissolution has not been stayed.


               (ii)     In any event, without prejudice to the said

               contention, it is submitted that the Petitioners

               can never represent the 100% of the partners of

               the partnership firm.


               (iii) Section 47 of the Partnership Act deals

               with acts which the partners can do after

               dissolution of the firm. The same is reproduced

               herein below for the sake of Convenience.

                      ‘47.     Continuing authority of partners
                      for purposes of winding up. After the
                      dissolution of a firm the authority of each
                      partner to bind the firm, and the other
                      mutual rights and obligations of the


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                  partners, continue notwithstanding the
                  dissolution, so far as may be necessary to
                  wind up the affairs of the firm and to
                  complete      transactions   begun     but
                  unfinished at the time of the dissolution,
                  but not otherwise:

                      Provided that the firm is in no case
                  bound by the acts of a partner who has
                  been adjudicated insolvent; but this
                  proviso does not affect the liability of any
                  person who has after the adjudication
                  represented himself or knowingly
                  permitted himself to be represented as a
                  partner of the insolvent.


         (p)        It is apparent from a bare perusal of the said

         Section that the partners are not permitted to create any fresh

         liabilities and execute new transactions. The acts if any are

         for the purpose of winding up of the affairs of the firm.

         (Please see Saligram Ruplal Khanna and Anr. Vs. Kanwar

         Rajnath- (1974) 2 SCC 642.



         (q)        The firm having been dissolved, it is not open to

         any   partners    to   undertake    business,    afresh.     The

         redevelopment of the building is clearly in the nature of a

         fresh business being undertaken by the partnership firm.

         Sans such redevelopment, the firm cannot hold on to the



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         property of MCGM in circumstances where the tenants are

         also out of their premises.


         (r)        The termination of the lease by the MCGM is

         justified since the Petitioner is in breach of the covenants of

         the lease deed.


         (s)        The Lease Deed casts an obligation on the lessee

         in Clauses 6 and 7 for maintenance and upkeep of the

         building. As per Clause 1 of the lease deed, all rents, taxes

         and charges were required to be paid by the lessee. The lease

         deed could be terminated and the land could be resumed in

         the event there was a breach of any of the covenant of the

         lease.


         (t)        The said firm and its partners had stopped paying

         lease rent since 1998. The lease rent of Rs.3,71,488/- was

         pending payment since 30.06.1998.


         (u)        In 2019, due to the lack of maintenance and

         upkeep of the building, it became ruinous and dilapidated.

         The members of the Applicant had to vacate the building.




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         (v)           Further, it appears the that said firm and its

         partners had failed to pay property tax to the MCGM. The

         MCGM on 28.08.2020 addressed a notice to the Court

         Receiver calling upon him to pay property tax to the tune of

         Rs.3,42,81,992/-.


         (w)           In September 2022, the building was demolished

         pursuant to the permission/order dated 07.07.2022 passed

         by the High Court.


         (x)           The Court Receiver had not paid the arrears of

         Property Tax. The MCGM on 10.04.2024 had once again

         addressed a notice to the Court Receiver for payment of

         property tax to the tune of Rs.9,80,18,624/-. Another demand

         notice was addressed by the MCGM on 06.11.2024 for an

         amount of Rs. 11,04,77,097/-.


         (y)           There was a gross failure on part of the said firm

         and its partners in maintaining the building and paying the

         property tax dues as contemplated in the lease deed. Further,

         the   lease     rent   remained       unpaid   since   30.06.1998.

         Furthermore, since the partnership firm was dissolved, the



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         Petitioner did not have any legal right, title or interest in the

         said property. Considering these factors, the MCGM rightly

         addressed a show-cause notice dated 08.11.2024 to the

         erstwhile partners of the firm for termination of the lease.


         (z)         There is no explanation forthcoming from the

         Petitioners regarding the non-payment of rents and property

         tax when demanded. The only explanation now furnished is

         that the property tax has been deposited after the termination

         of the lease and it is a curable defect. There is no explanation

         regarding the aspect of dissolution of the firm, the non

         payment of rent and the non payment of property tax at the

         relevant time. The termination of the lease is, therefore,

         rightful. The Petitioners now seeks to usurp the said land

         which they are not entitled to. The said firm being dissolved,

         the lease cannot be continued.


         (aa)        Further, the said Firm was dissolved pursuant to

         a Preliminary Decree dated 20 August, 2018. The said

         dissolution was sought by Petitioner No.1 himself by filing a

         Suit for the same. Although only one of the partners of the

         dissolved Firm has preferred a First Appeal, against the said


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         Preliminary Decree, who has now passed away and is being

         represented by his legal heirs, the Petitioners are contesting

         the said First Appeal, and no stay of operation or effect of

         the said Preliminary Decree has been granted by this Court

         till date. Any unanimous consent or joint redevelopment

         proposal by the Petitioners, irrespective of the percent share

         claimed to be represented, is impossible owing to the 50+

         years long pending dispute and the conduct of the parties.

         Thus, there can be no continuation of lease, if at all.



              SUBMISSIONS ON BEHALF OF THE TENANTS


7.              Mr. Khandeparkar has not disputed the dates and

sequence of events. In his submissions, he contends that it was

Petitioner No.1 who had instituted a Suit No.1010 of 1973 on

account of disputes inter se amongst the partners. Undisputedly, the

partnership firm was dissolved by a decree on 20.08.2018 passed by

the City Civil Court. The partnership was dissolved at the behest of

Petitioner No.1. Subsequently, M/s. Ghanshyam Saligram Khanna

another partner of the dissolved partnership firm, now deceased and

represented by his heirs, including Respondent Nos.16 and 17, filed

First Appeal No.1912 of 2024 (Stamp No.31064 of 2018) before the

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Single Judge Bench.



8.            By order dated 07.07.2022 r/w 19.07.2022, the

Corporation was directed to demolish the building since the partners

had disregarded and ignored the building leading it to it’s

dilapidated condition and categorized as C-1. Six months time was

granted by the Single Judge for the Appellants/Partners and the heirs

of the deceased partners to convey their decision for redevelopment

within six months. The Petitioners prepared a back-dated letter

dated 06.01.2023, which was served upon the Corporation on

17.01.2023, beyond the six months timeline, expressing their

willingness to redevelop the building themselves. This was after the

six months timeline granted by the Single Judge. Consequentially,

the Corporation got the right under the directions of the Single

Judge to takeover the land from the owners by protecting the rights

of the tenants/occupants.



9.            In the backdrop of several violations of the lease

conditions, the Petitioners challenged the show-cause notice dated

08.11.2024 issued by the Corporation and the letter dated

08.11.2024 (Exhibit ‘Q’-Page 218), issued by the Corporation


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rejecting the proposal, by filing an Interim Application in the First

Appeal. By order dated 08.01.2025, the Single Judge recorded the

statement of Petitioner No.1 that a common proposal would be

submitted within a period of three weeks for redevelopment of the

property. Therefore, the Single Judge directed that no coercive steps

would be taken till the next date. By order dated 09.06.2025, passed

in the First Appeal, the Court discharged the Court Receiver.



10.           The tenants who are Respondent Nos.15 to 21 and 25 to

27, claim to be entitled to 24.61% share in the dissolved partnership

firm. With regard to the dispute of percentage and share of interest

which is a disputed question of fact, the Writ Jurisdiction of this

Court should not be invoked and the Petitioners should be relegated

to the appropriate Civil Court.



11.           The Petitioners are not the owners of the property

which is a partnership asset. They cannot claim a right to maintain a

proceeding impugning the orders passed by the Corporation with

regard to the partnership assets or seek reliefs in connection with the

possession and redevelopment without the consent of the tenants.

Once an asset is brought into a common hotch-pot of the firm, it


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would cease to be the trading asset of the person who brought it in.

Consequently, it would be a trading asset of the partnership in which

all partners would have interest (read Sachin Jaiswal V/s. Hotel Alka

Raje & Ors., 2025 SCC OnLine SC 446).



12.           It is further canvassed that after the partnership firm is

dissolved, no new venture can be taken up by the partnership firm

and the affairs are restricted to winding up and complete the

transaction which remained unfinished at the time of dissolution in

view of Section 47 of the Indian Partnership Act, 1932.



13.           The rights and obligations of the partners do not extend

to taking up new ventures which would create new set of rights and

obligations beyond those created at the time of dissolution. On

dissolution, every partner is entitled to have the property of the firm

after payment of debts and have the surplus distributed amongst

themselves. The firm or a partner individually cannot redevelop any

property without the consent of the other partners. No new rights or

liabilities can be created in connection with the properties of the

partnership firm qua third parties (including the tenants/occupants),

in view of the objections by the Respondents before us. The firm in


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a dissolved state, cannot be represented by a section of the partners

who exclude others, particularly when the existence of rights of the

heirs of the original partners are not disputed.



14.           The Petitioners and these Respondents are not together,

is the argument of the Respondents. The two Petitioners cannot

espouse the cause of the other partners, i.e., these Respondents. The

Petitioners cannot set up a case on behalf of the partnership firm

without the consent of these Respondents. The redevelopment of the

building and the land cannot be undertaken without the 100%

consent of the partners/legal heirs of the dissolved firm. The

redevelopment is not possible until the shares and entitlement of

each partner/heirs in the partnership is conclusively determined. The

two Petitioners cannot unilaterally seek to proceed with the

redevelopment without the concurrence of these Respondents. Until

the inter-se disputes are adjudicated upon in the First Appeal and the

pending Interim Application, and until the shares are conclusively

determined, any attempt to redevelop the property would lead to

multiplicity of litigation.




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              ANALYSIS AND CONCLUSIONS


15.           We have deeply considered the entire oral as well as

the written submissions of the parties. The salient features of their

submissions are summarised in the foregoing paragraphs.



16.           We have perused the show-cause notice dated

08.11.2024 issued by the Deputy Municipal Commissioner. He has

noted that the partners of M/s. Khanna Construction House had

received the plot/parcel of land on a lease for 999 years from

12.01.1961. A building was constructed on the said lease land.

Proceedings were initiated by some of the partners seeking

dissolution of the partnership firm. In the said suit, the City Civil

Court delivered a Judgment on 20.08.2018 and dissolved the

partnership firm from the date of the order.



17.           The affairs of the partnership firm were wound up and

the Court Receiver, appointed by the Bombay High Court, was

directed to realise its assets, the debts and its accounts be taken and

the shares of each partner be ascertained after deducting taxes

including municipal taxes, property taxes, fee of Court Receiver and

other charges. The Court Receiver was directed to take all accounts

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from the parties and after receiving the same, to file the Suit for

ejectment, recovery of rent and compensation from the occupants of

the partnership firm. It was also recorded that the proposal to

develop the property was delivered to the Assistant Commissioner

pursuant to the order of the Single Judge dated 07.07.2022, on

17.01.2023, after the expiry of six months. The Corporation acted in

terms of the order of the High Court and rejected the time barred

proposal on 08.11.2024.



18.           Pursuant to the order of the High Court, the show-cause

notice was issued and a hearing was conducted on 27.06.2025. The

entire submissions of the disputing parties were considered

extensively by the concerned authority and an extensive order

running into 19 pages was passed, which is impugned in this

Petition. The show-cause notice dated 08.11.2024 was held to have

been justifiable issued. A direction was issued to initiate the process

for the termination of the lease deed dated 14.07.1965. It is in this

backdrop that the lease deed/agreement was terminated.



19.           We have perused the lease deed dated 14.07.1965,

wherein it is recorded that the possession of the plot was granted by


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the Corporation on 12.01.1961. The terms and conditions have been

elaborately set out in the lease deed. Specific conditions with regard

to the repairs of the building, maintenance of the Porebunder stone-

work, external painting colours and the means to maintain the

building, have also been set out. The termination clause for breach

of any of the conditions is also specifically incorporated and which

indicates that if there is any breach of any of the conditions, the

Corporation may re-enter upon the said premises and absolutely

determine the rights of the lessee.



20.           In the Judgment of the City Civil Court dated

20.08.2018, the following order was passed :

         “1. Suit is decreed on admission.

         2. The partnership firm ‘M/s. Khanna
         Construction House’ is declared dissolved with
         effect from the date of order.

         3. The affairs of the partnership firm ‘M/s.
         Khanna Construction House’ be wound up and Court
         Receiver, appointed by Hon. Bombay High Court, is
         directed to realize its assets, debts paid and its
         accounts be taken and the share coming to each of
         partners of firm be ascertained and paid over after
         their liability ascertained as per their shares after
         deducting the taxes including municipal taxes,
         property taxes and other charges etc. including fee of
         Court Receiver.



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         4. Plaintiff and original defendants have following
         shares in the partnership properties assets and
         profits,

          Plaintiff                             9%
          Original defendant No.1               22%
          Original defendant No.2               14%
          Original defendant No.3               9%
                      defendant No.4            9%
                      defendant No.5            9%
                      defendant No.6            22%
                      defendant No.7            6%

         5. The Court Receiver is directed to take all
         accounts from the parties and after receipt of it to
         file the suit for ejectment and recovery of rent and
         compensation from the occupants of the partnership
         firm, if any due.

         6. Plaintiff and defendants are hereby restrained in
         creating third party interest in the suit property or
         disposing off, alienating, encumbering or parties
         with possession of partnership assets and properties
         by any means or by any manner.

         7.   Preliminary decree be drawn up accordingly.

         8.   Parties are directed to bear their costs.”



21.           As such, the Petitioners before us are the original

plaintiff (Petitioner No.1) and Defendant No.7 (Petitioner No.2).

Petitioner No.1 has a share of only 9% and Petitioner No.2 has a

share of only 6% in the partnership properties assets and profits.


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22.             In Saligram Ruplal Khanna (supra), the Hon’ble

Supreme Court (Three-Judges Bench), while considering the scope

of a dissolved partnership firm, has concluded as under:

              ‘30. Reference has also been made on behalf of the
              appellants to the consent given by the respondent
              on behalf of SAMCO on November 13, 1957 to the
              award of Rs. 18,00,000 by Mr. Morarji Desai in
              favour of the Custodian against SAMCO. It is
              urged that this document would go to show that the
              firm of SAMCO had not been dissolved before that
              date. We are unable to agree. The arbitration
              proceedings had been started as a result of
              application under Section 20 of the Arbitration Act
              filed on April 21, 1955 when SAMCO was in
              existence and was a running concern. The
              arbitration proceedings related to a claim of the
              Custodian of Rs. 30,00,000 on account of the price
              of stocks of raw material, stores and other
              moveables as well as about the arrears of rent.
              Counter-claim had also been made by SAMCO
              against the Custodian for a sum of Rs. 17,67,080
              as per written, statement dated December 18, 1956
              filed in arbitration proceedings. The consent which
              was given by the respondent on November 13,
              1957 was with a view to get the dispute between
              SAMCO with the Custodian finally settled. This
              was a necessary step for the purpose of winding up
              the affairs of SAMCO and to complete transaction
              of arbitration proceedings which had been begun
              but remained unfinished at the time of dissolution.
              According to Section 47 of the Indian Partnership
              Act, after the dissolution of a firm the authority of
              each partner to bind the firm, and the other mutual
              rights and obligations of the partners, continue
              notwithstanding the dissolution, so far as may be
              necessary to wind up the affairs of the firm and to
              complete transactions begun but unfinished at the
              time of the dissolution, but not otherwise. The word


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              "transaction" in Section 47 refers not merely to
              commercial transaction of purchase and sale but
              would include also all other matters relating to the
              affairs of the partnership. The completion of a
              transaction would cover also the taking of
              necessary steps in connection with the adjudication
              of a dispute to which a firm before its dissolution is
              a party. The legal position in this respect has been
              stated on page 251 of Lindley on Partnership, 13th
              Edn. as under:

                 Notwithstanding a dissolution each partner
                 can pay, or receive payment of, a
                 partnership debt; for it is clearly settled
                 that payment by one of several joint
                 debtors, or to one of several joint
                 creditors,    extinguishes      the     debt
                 irrespective of any question of partnership.
                 So, again, it has been held that a
                 continuing or surviving partner may issue
                 a bankruptcy notice in the firm name in
                 respect of a judgment obtained before the
                 dissolution, and that notice to him of the
                 dishonour of a bill of exchange is
                 sufficient, and that he can withdraw a
                 deposit or sell the partnership assets, or
                 pledge them for the purpose of completing
                 a transaction already commenced, or of
                 securing a debt already incurred, or the
                 overdraft on the partnership current
                 account at the bank.

              31. The proposition, in our opinion, cannot be
              disputed that after dissolution, the partnership
              subsists merely for the purpose of completing
              pending transactions, winding up the business,
              and adjusting the rights of the partners; and for
              these purposes, and these only, the authority,
              rights, and obligations of the partners continue
              (see page 573 of Halsbury's Laws of England,
              3rd Edn., Vol. 28). We would, therefore, hold


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              that the consent given by the respondent on
              November 13, 1957 to the award of Mr. Desai
              would not detract from the conclusion that the
              firm of the parties stood dissolved on the expiry
              of the fixed period of partnership, viz., August
              30, 1957’.



23.             It is, thus, a crystallized position that once a partnership

firm is dissolved, the authority of each partner to bind the firm

would continue, notwithstanding the dissolution, only to the extent

of winding up the affairs of the firm and to complete transactions

begun, but unfinished at the time of dissolution. No further

transactions/rights or creation of encumbrances is permitted.


24.             Today, the Original Plaintiff, whose suit led to the

dissolution of the firm, is Petitioner No. 1 with a 9% share, and

Defendant No. 7 is Petitioner No. 2 with a 6% share. The Petitioners

did not comply with the order of the learned Single Judge dated

07.07.2022 and did not convey their willingness to redevelop the

building. In fact, the Petitioners played a trick of preparing a back-

dated letter of 06.01.2023 and served the letter on the Corporation

on 17.01.2023. The conduct of the Petitioners is apparent. In our

Writ jurisdiction, equities will favour a litigant who comes with

clean hands. The learned Single Judge had specifically recorded


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that, if no such request was conveyed to the Corporation within six

months, the Corporation would be free to take over the land from

the owners while protecting the rights of the tenants/occupants.

Hence, the trick played by the Petitioners of preparing a back-dated

letter which was admittedly served on 17.01.2023.


25.           As such, the partnership firm has apparently violated

the conditions of the lease agreement, as is visible from the records.

The suit preferred by the Plaintiff partners led to the dissolution of

the partnership firm. The breathing time of six months granted by

the learned Single Judge was squandered away by the Petitioners.



26.           The judgment dated 09.06.2025 delivered by the

learned Single Judge clearly held that the partnership firm is

dissolved and that the order dated 07.07.2022 was violated by the

present Petitioners. The majority of the original partners have

passed away, and no legal heir certificates by the legal heirs were

shown to the learned Single Judge. Some of them accepted the order

of the City Civil Court dissolving the partnership firm, which

convinced the learned Single Judge to conclude that this Court

cannot deprive the occupants/tenants of the suit property, who have



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been out of their premises for more than seven years (now eight

years), of their rights, and that the interest of the occupants/tenants

was of paramount importance.

              It was also held that the conduct of the Petitioners

indicates that they only want to claim shares in the suit property and

do not desire to pay taxes and redevelop the suit property. An

attempt to pay taxes after the lease agreement is terminated, is of no

avail. The non-payment of the rents and taxes is writ large on the

face of the record.



27.           This judgment of the learned Single Judge was

maintained by the Hon’ble Supreme Court in Special Leave to

Appeal (C) No. 17680 of 2025 by specifically concluding, ‘we find

no good ground or reason to interfere with the impugned

judgment/order passed by the High Court’. The fact that the

Petitioners have approached the High Court, was brought to the

notice of the Hon’ble Supreme Court.



28.           Considering all the relevant factors emerging from the

record, we are convinced that the impugned orders passed by the

Corporation terminating the lease agreement cannot be termed as



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being perverse or erroneous. Glaring illegalities and irregularities

committed by the firm and then by the Petitioners, have been duly

considered and dealt with. In fact, taking into account the law laid

down in Saligram Ruplal Khanna (supra), a dissolved Partnership

firm cannot create further rights, more so, when it is sought to

initiate a new transaction of undertaking a new project of

construction of a building.



29.           Merely because a different view could be possible,

would not be a ground to interfere with the impugned orders, in

view of the law laid down in Syed Yakoob v. K. S. Radhakrishnan,

AIR 1964 SC 477, and Surya Dev Rai v. Ram Chander Rai, AIR

2003 SC 3044 : (2003) 6 SCC 682.


30.           As such, this Writ Petition is devoid of merit and is

accordingly dismissed. Rule is discharged.


31.           Pending Interim Applications, if any, would not survive

and stand disposed off.




(ABHAY J. MANTRI, J.)                       (RAVINDRA V. GHUGE, J.)



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32.           At this juncture, the learned Senior Advocate

Mr. Dwarkadas, along with the learned Advocates, for the two

Petitioners, pray for continuation of the interim arrangement that

was set out in the order dated 11.09.2025.


33.           The   learned   Senior Advocates,     Dr.   Saraf    and

Mr. Godbole, strenuously oppose the request. It is pointed out that

this Court had issued notice in the very first hearing and merely

directed to maintain a particular situation without even considering

the merits of the case.



34.           We find from the order dated 11.09.2025 that we had

directed the Corporation not to finalise any lease proposal. From the

record available before us and the detailed analysis and conclusions

in this Judgment, we are not inclined to continue with the Interim

arrangement.




(ABHAY J. MANTRI, J.)                      (RAVINDRA V. GHUGE, J.)




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