Bombay High Court
M/S. NEW DHOLERA SHIPPING AND TRADING CO. LTDversusVARSHA NARANDAS SEJPAL AND ORS
- Decided
- Disposal
- Disposed Off
- Bench
- SANDEEP V MARNE
Holding
Obstructionists are liable to deposit interim compensation of Rs 13,000 per month from January 2018, with a 50 % concession for the Covid‑19 period, and the quantum of Rs 13,000 is confirmed.
Summary
The Bombay High Court modified orders of the Small Causes Court Appellate Bench concerning interim compensation payable by obstructionists who occupied units in a building constructed on a 99‑year lease that was not registered. The lease was treated as a monthly tenancy under Section 106 of the Transfer of Property Act, 1882, leading to a decree for eviction dated 29 January 2014. The co‑operative society of unit owners had deposited Rs 7,05,637 as interim compensation up to December 2017 but defaulted thereafter, prompting the decree holders to seek execution. The Appellate Bench had directed obstructionists to pay Rs 13,000 per month from the date of the decree, which the High Court held to be erroneous as it would cause double payment. The Court confirmed the Rs 13,000 quantum, ordered payment from January 2018 with a 50 % concession (Rs 6,500) for the Covid‑19 period (March 2020‑February 2022), and conditioned the continuation of the stay on timely deposit.
Issues considered
- From which date should obstructionists be liable to deposit interim compensation?
- What is the appropriate quantum of interim compensation for each unit?
- Whether a concession should be granted for the Covid‑19 pandemic period?
- Whether the Appellate Bench erred in directing payment from the date of the original decree
Legislation cited
- Transfer of Property Act, 1882 — s. 106
Subjects
- lease
- interim compensation
- obstructionist
- eviction
- Covid-19 concession
- Transfer of Property Act
- Small Causes Court
- stay of execution
Judgment
Megha 13_wp_1555_2026
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO.2033 OF 2026
Mrs. Varsha Narandas Sejpal ...Petitioner
V/s.
M/s. New Dholera Shipping & Trading
Co. Ltd. and Ors. ...Respondents
WITH
WRIT PETITION NO.1556 OF 2026
Vishal Narandas Sejpal ...Petitioner
V/s.
M/s. New Dholera Shipping & Trading
Co. Ltd. and Ors. ...Respondents
WITH
WRIT PETITION NO.1555 OF 2026
Mrs. Varsha Narandas Sejpal ...Petitioner
V/s.
M/s. New Dholera Shipping & Trading
Co. Ltd. and Ors. ...Respondents
WITH
WRIT PETITION NO.1925 OF 2026
Kirit Damodar Parikh and Ors. ...Petitioners
V/s.
M/s. New Dholera Shipping & Trading
Co. Ltd. and Ors. ...Respondents
WITH
WRIT PETITION NO.1944 OF 2026
Mrs. Varsha Narandas Sejpal ...Petitioner
V/s.
M/s. New Dholera Shipping & Trading
Co. Ltd. and Ors. ...Respondents
WITH
WRIT PETITION NO.1943 OF 2026
Page No.1 of 11
10 April 2026
Megha 13_wp_1555_2026
Damodar Chakubhai Oil & Vegetables
Pvt. Ltd. ...Petitioner
V/s.
M/s. New Dholera Shipping & Trading
Co. Ltd. and Ors. ...Respondents
WITH
WRIT PETITION NO.1924 OF 2026
M/s. M.K. Trading Co. ...Petitioner
V/s.
M/s. New Dholera Shipping & Trading
Co. Ltd. and Ors. ...Respondents
WITH
WRIT PETITION NO.1957 OF 2026
Mahesh Damodar Parikh and Ors. ...Petitioners
V/s.
M/s. New Dholera Shipping & Trading
Co. Ltd. and Ors. ...Respondents
WITH
WRIT PETITION NO.1921 OF 2026
Sachin Vamaya Shetty ...Petitioner
V/s.
M/s. New Dholera Shipping & Trading
Co. Ltd. and Ors. ...Respondents
WITH
WRIT PETITION NO.1942 OF 2026
M/s. Balaji Enterprises ...Petitioner
V/s.
M/s. New Dholera Shipping & Trading
Co. Ltd. and Ors. ...Respondents
WITH
WRIT PETITION NO.1920 OF 2026
Narandas Amratlal Sejpal ...Petitioner
V/s.
M/s. New Dholera Shipping & Trading
Page No.2 of 11
10 April 2026
Megha 13_wp_1555_2026
Co. Ltd. and Ors. ...Respondents
WITH
WRIT PETITION NO.1955 OF 2026
Narandas Amratlal Sejpal HUF ...Petitioner
V/s.
M/s. New Dholera Shipping & Trading
Co. Ltd. and Ors. ...Respondents
WITH
WRIT PETITION NO.1922 OF 2026
M/s. Sharad Trading Co. ...Petitioner
V/s.
M/s. New Dholera Shipping & Trading
Co. Ltd. and Ors. ...Respondents
WITH
WRIT PETITION NO.1954 OF 2026
Narandas Amratlal Sejpal ...Petitioner
V/s.
M/s. New Dholera Shipping & Trading
Co. Ltd. and Ors. ...Respondents
WITH
WRIT PETITION NO.2307 OF 2026
Mukesh Harilal Goradia and Anr. ...Petitioners
V/s.
M/s. Dholera Shipping and Trading Co.
Ltd. and Ors. ...Respondents
WITH
WRIT PETITION NO.4611 OF 2026
M/s. New Dholera Shipping & Trading
Co. Ltd. ...Petitioner
V/s.
Mahesh Damodar Parikh and Ors. ...Respondents
WITH
WRIT PETITION NO.4613 OF 2026
M/s. New Dholera Shipping & Trading ...Petitioner
Co. Ltd.
Page No.3 of 11
10 April 2026
Megha 13_wp_1555_2026
V/s.
Kirit Damodar Parikh and Ors. ...Respondents
WITH
WRIT PETITION NO.4615 OF 2026
M/s. New Dholera Shipping & Trading ...Petitioner
Co. Ltd.
V/s.
Sachin Vamaya Shetty and Ors. ...Respondents
WITH
WRIT PETITION NO.4619 OF 2026
M/s. New Dholera Shipping & Trading ...Petitioner
Co. Ltd.
V/s.
M/s. M.K. Trading and Ors. ...Respondents
WITH
WRIT PETITION NO.4621 OF 2026
M/s. New Dholera Shipping & Trading ...Petitioner
Co. Ltd.
V/s.
Damodar Chakubai Oil & Vegetables
Pvt. Ltd. and Ors. ...Respondents
WITH
WRIT PETITION NO.4622 OF 2026
M/s. New Dholera Shipping & Trading ...Petitioner
Co. Ltd.
V/s.
Vishal Narandas Sejpal and Ors. ...Respondents
WITH
WRIT PETITION NO.4624 OF 2026
M/s. New Dholera Shipping & Trading ...Petitioner
Co. Ltd.
V/s.
Narandas Amratlal Sejpal HUF and
Ors. ...Respondents
Page No.4 of 11
10 April 2026
Megha 13_wp_1555_2026
WITH
WRIT PETITION NO.4625 OF 2026
M/s. New Dholera Shipping & Trading
Co. ...Petitioner
V/s.
Narandas Amratlal Sejpal and Ors. ...Respondents
WITH
WRIT PETITION NO.4627 OF 2026
M/s. New Dholera Shipping & Trading
Co. Ltd. ...Petitioner
V/s.
Mrs. Varsha Narandas Sejpal and Ors. ...Respondents
WITH
WRIT PETITION NO.4628 OF 2026
M/s. New Dholera Shipping & Trading
Co. Ltd. ...Petitioner
V/s.
M/s. Balaji Enterprises and Ors. ...Respondents
WITH
WRIT PETITION NO.4629 OF 2026
M/s. New Dholera Shipping & Trading
Co. Ltd. ...Petitioner
V/s.
Mrs. Varsha Narandas Sejpal and Ors. ...Respondents
WITH
WRIT PETITION NO.4630 OF 2026
M/s. New Dholera Shipping & Trading
Co. Ltd. ...Petitioner
V/s.
M/s. Sharad Trading Co. and Ors. ...Respondents
WITH
WRIT PETITION NO.4631 OF 2026
M/s. New Dholera Shipping & Trading
Co. Ltd. ...Petitioner
Page No.5 of 11
10 April 2026
Megha 13_wp_1555_2026
V/s.
Varsha Narandas Sejpal and Ors. ...Respondents
WITH
WRIT PETITION NO.4641 OF 2026
M/s. New Dholera Shipping & Trading
Co. Ltd. ...Petitioner
V/s.
Narandas Amratlal Sejpal and Ors. ...Respondents
________________
Mr. Jaydeep Deo i/b. Mr. Onkar Gawade for the Petitioner in
WP/2033/2026 wp/1556/2026, wp/1555/2026,, wp/1925/2026,
wp/1944/2026, wp/1943/2026, wp/1924/2026, wp/1957/2026,
wp/1921/2026, wp/1942/2026, wp/1920/2026, wp/1955/2026,
wp/1922/2026 and wp/1954/2026.
Mr. Sudhanva Bedekar with Mr. Mohammed Najmi for the Petitioner in
WP/2307/2026.
Mr. Piyush Raheja with Mr. Sharad Bansal, Mr. Sahil Gandhi, Ms. Dimple
Vora and Mr. Darshil Desai i/b. M/s. Makrand Gandhi & Co. for the
Petitioner in wp/4611/2026, wp/4613/2026, wp/4615/2026,
wp/4619/2026, wp/4621/2026, wp/4622/2026, wp/4624/2026,
wp/4625/2026, wp/4627/2026, wp/4628/2026, wp/4629/2026,
wp/4630/2026, wp/4631/2026, wp/4641/2026 and for Respondent in
wp/2033/2026, wp/1556/2026, wp/1555/2026,, wp/1925/2026,
wp/1944/2026, wp/1943/2026, wp/1924/2026, wp/1957/2026,
wp/1921/2026, wp/1942/2026, wp/1920/2026, wp/1955/2026,
wp/1922/2026 and wp/1954/2026
________________
CORAM: SANDEEP V. MARNE, J.
DATED: 10 APRIL 2026.
P.C.:
1) These are cross Petitions @led by Obstructionists and by
Lessor/Decree Holders challenging the orders passed by the Appellate
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Bench of the Small Causes Court on 2 December 2025 determining the
interim compensation payable in respect of each of the units occupied by
the Obstructionists as a condition for stay to the execution of the
judgment and decree dated 29 January 2014 passed in T.E. & R. Suit
No.230/249 of 2003.
2) I have heard Mr. Jaydeep Deo, the learned counsel appearing for
the Obstructionists, Mr. Bedekar, the learned counsel appearing for the
Obstructionists in WP/2307/2026 and Mr. Raheja, the learned counsel
appearing for Lessor/Decree Holders.
3) The case involves unique circumstances where a lease was
granted in respect of the open piece of land. Under the novated term of
lease, the Lessee was granted permission to construct building on the
leased land and to sell the constructed units to third parties. Though the
lease was supposed to be for a period of 99 years, since the lease was not
registered, the Small Causes Court interpreted the terms of the lease as a
simple monthly lease terminable under Section 106 of the Transfer of
Property Act, 1882. This is how recovery of possession of the leased land
is directed vide decree dated 29 January 2014 in T.E. & R. Suit
No.230/249 of 2003.
4) It appears that the original Lessee had disappeared from the
scene apparently because he had already sold the constructed units. The
purchasers of the units have formed a co-operative society, which @led
appeal against decree dated 29 January 2014. The Appellate Court
determined interim compensation of Rs.7,05,637/- and directed the
Page No.7 of 11
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Society to deposit the same as a pre-condition for grant of stay to the
decree for eviction. It appears that the Society had paid amount of
interim compensation till December 2017. After January 2018, the
Society defaulted in deposit of amount of interim compensation. Since
the Society defaulted in payment of amount of interim compensation,
the Decree Holders attempted to execute the decree and recover
possession of the suit property. At this stage, several individual members
of the Society, who are unit owners, presented obstruction to the
execution of the decree. Accordingly, several Obstructionist Notices came
to be registered by the Executing Court. The Obstructionists Notices
have been rejected by the Executing Court against which the
Obstructionists have @led appeals before the Appellate Bench of the
Small Causes Court. In those appeals, the Appellate Bench has
determined interim compensation of Rs.13,000/- per month in respect of
each of the units and has directed the Obstructionists to deposit the
same from the date of decree i.e. 29 January 2014.
5) Considering the above position, it is clear that the Society
initially opposed execution of the decree and tried its luck by @ling
appeal before the Appellate Bench challenging eviction decree dated 29
January 2014. In its appeal, the Society was directed to deposit interim
compensation of Rs.7,05,637/-, which it deposited upto December 2017.
After January-2018 neither the Society nor individual Obstructionists
/unit occupiers have deposited any interim compensation.
6) In my view, therefore, liability to deposit interim compensation
by Obstructionists need to be from January-2018. To this limited extent
the Appellate Court has erred in directing to deposit of interim
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compensation from the date of decree i.e. 29 January 2014. If
Obstructionists are required to deposit interim compensation from 29
January 2014 there shall be double deposit / payment of interim
compensation during 29 January 2014 to December-2017 since Society
has already deposited interim compensation of Rs.7,05,637/- upto
December-2017.
7) So far as quantum of interim compensation @xed by the
Appellate Bench is concerned, the Decree Holders have questioned the
same. Since the Decree Holders did not question the quantum of interim
compensation @xed against the Society of Rs.7,05,637/- in my view they
cannot now question the quantum of interim compensation of
Rs.13,000/- @xed by the Appellate Bench. There are apparently 56 units
of the building and if amount of Rs.7,05,637/-is divided by 56 units, the
amount payable in respect of each unit roughly comes to the tune of
Rs.13,000/-. I am therefore, not inclined to interfere in the quantum of
interim compensation @xed by the Appellate Court.
8) Mr. Deo, the learned counsel appearing for the Obstructionists
has relied upon order dated 6 August 2024 in Civil Writ Petition No.2721
of 2024 (Ratnakar Dattatraya Khambe and Ors. V/s. M/s. New Dholera
Shipping and Trading Company Ltd. and Ors.). However, it appears that
order dated 6 August 2024 is merely a pro tem arrangement made during
pendency of the said Petition. In that case, the Obstructionists
apparently lost even before the Appellate Bench and have challenged the
order of the Appellate Bench by @ling writ petition before this Court. As a
pro tem arrangement, this Court directed to deposit the interim
compensation of Rs.13,000/- per month from month of February-2024.
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The date of February 2024 is not sacrosanct and cannot be applied in the
present case. There is no dispute to the position that the Society has
failed to deposit the interim compensation after January 2018 and
therefore, if Obstructionists are opposing execution of the decree, it is
their responsibility to deposit the interim compensation from January-
2018.
9) It is contended on behalf of the Obstructionists that some respite
be granted in respect of Covid-19 period due to Pandemic related
restrictions. Considering the fact that economic activities had come to a
grinding halt and were largely affected during Covid-19 Pandemic period
from March 2020 till February-2022, in my view, some concession can be
granted to the Obstructionists in respect of said period. It must also be
borne in mind that the Obstructionists are ultimately the purchasers of
the units and have purchased the same under a sanguine hope that they
would acquire ownership in respect of the structures. The decree for
eviction is passed essentially on account of failure on the part of the
Developer to register the condition of lease.
10) Considering the peculiar circumstances of the present case, 50%
concession deserves to be granted in respect of the period from March-
2020 till February-2022 during Covid-19 Pandemic restrictions.
11) Accordingly, I proceed to pass the following order:-
(i) Orders dated 2 December 2025 passed by the Appellate
Bench of the Small Causes Court are modi@ed to the
following extent:-
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(a) Quantum of compensation of Rs.13,000/- per
month by the Appellate Bench is con@rmed.
(b) Obstructionists shall be liable to deposit
interim compensation of Rs.13,000/- per month
from January-2018 till disposal of the Appeal.
(c) Obstructionists shall be entitled to 50%
concession in making the deposit of the interim
compensation and they shall deposit amount
only of Rs.6,500/- per month from March-2020
to February-2022.
(ii) If the Obstructionists deposit the arrears of interim
compensation as modi@ed above, within a period of 8
weeks from today, stay to the execution of the decree
granted by the Appellate Bench shall continue to operate
during pendency of the Appeals.
(iii) In respect of those Obstructionists, who fail to deposit
the interim compensation as modi@ed above, within the
stipulated period, the Executing Court shall proceed to
execute the decree only qua their units.
12) With the above directions, all the Petitions are disposed of.
[SANDEEP V. MARNE, J.]
Signed by: Megha S. Parab
Page No.11 of 11
Designation: PA To Honourable Judge 10 April 2026
Date: 16/04/2026 19:52:32
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