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Reprieve for Urvashi Cinema: Supreme Court stays February 15 eviction of Bengaluru’s iconic theatre

The Supreme Court has extended the time for Sreenivasa Enterprises to hand over the Urvashi Cinema land and asked it to deposit 50 per cent of the compensation as directed by the Karnataka High Court within six weeks.

Supreme Court Urvashi CinemaThe Supreme Court was hearing an appeal against a Karnataka High Court ruling which ordered eviction of Urvashi Cinema (File Photo).

The Supreme Court Friday extended the deadline for handing over vacant possession of the land over which the single-screen Urvashi Cinema theatre is constructed in Bengaluru. The Karnataka High Court had directed the tenants of the land, Sreenivasa Enterprises, to hand over the vacant possession on or before February 15.

A bench of Justice Prashant Kumar Mishra and Justice N V Anjaria, while issuing notice on the appeal filed by the tenants against the High Court order dated October 13, 2025, said, “The time granted to the petitioner for handing over the vacant possession of the subject premises is extended till the next date of hearing.”

The court directed that the respondents file their affidavit within four weeks and the rejoinder by the appellant within two weeks after filing the counter affidavit.

Further, the court directed Sreenivasa Enterprises to deposit 50 per cent of the mesne profit (compensation) as directed by the High Court, within six weeks. The High Court had directed to deposit Rs 20,00,000 per month as mesne profit/damages for the entire suit schedule property, from April 24, 2018, when the lease period ended till the handing over the suit schedule properties to the landlord: B K Rajendra Prasad and others.

Section 2 (12) of the Civil Procedure Code defines mesne profits of property to be those profits which the person in wrongful possession of such property actually received or might with ordinary diligence have received therefrom, together with interest on such profits.

The appeal in the apex court questions the High Court decision on two grounds: fixing of the revised mesne profits/damages to be paid by the
tenants to the tune of Rs 20 lakh per month, to the landlords. As compared to the amount of Rs 6,25,000 per month fixed by the trial court. The second being that the original lease agreement, dated January 29, 1970, for a period of 45 years had a renewal clause of another 45 years, thus the landlords are bound to follow the same.

Notably, the High Court in its order had rejected the contentions of the tenants. noting that the renewable clause in the registered Lease Deeds for another 45 years were to be with the consent of the landlords only and not at the option or discretion of the tenants. It had upheld the trial court order rejecting relief of specific performance of the contract made by the tenants against the landlords in their suit.

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Background of the case

Under three lease deeds in 1970, the lands were obtained by tenants from the landlords for a period of 45 years. The tenants made the construction of Urvashi Cinema along with other constructions on the suit property. The screening of the first film at the theatre was made on April 24, 1976.

The lease agreement expired on April 23, 2018, after which the landlords issued an eviction notice seeking vacant possession. The trial court decreed the suit filed by the landlords and rejected the suit filed by the tenants by its order dated February 15, 2024, following which appeals were filed in the High Court.

 

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