Just for 105 sq ft, Air-India lands tenancy battle in SC

Principal Judge A S Aguiar had earlier quashed the eviction order issued by Air-India’s estate officer against one R Kannan under the PPA. It is probably the first time a principal judge, the appellate authority over all estate officers under the act, has taken cognisance of the guidelines for the PPA issued by the Union Ministry of Urban Affairs in 1992.

Now, the SC has ordered a staytill October 8 or till the special leave petition is admitted, whichever is earlier. Kannan had originally taken the ground floor room on lease in Air-India’s building at Nariman Point over two decades ago for commercial purposes. However, following the 1993 serial bomb blasts in the city, he was prevented from entering the damaged premises for security reasons. While Air-India allowed its other tenants — like the Bank of Oman, Haryana Emporium and Mauritius Bank — to return, it initiated eviction proceedings against Kannan in 1994.

This was followed by a show-cause notice under the PPA in November 1995, with Air-India claiming that Kannan’s occupancy was “unauthorised” under the act.

Contesting the claim, Kannan’s advocate Rajan Jaykar, says, “My client was a small businessman and the premises he occupied would fetch higher profits if it was let out to commercial undertakings.”

Counsel P K Bhatia for Air-India argued that there was no “arbitrariness in termination of leave and licence agreementand pointed out that the airline was entitled to invoke the provisions of the PPA.”

However, Jaykar alleges that Air-India has also committed contempt of court by violating an earlier Bombay High Court (HC) order. On September 8, a division bench of the HC had ordered the corporation to give back possession of the premises to the tenant by September 15. The airline, however, defaulted on the deadline. The HC had also rejected an appeal for a stay on its own order.

A division bench comprising Justices Ashok Agarwal and S S Nijjar directed the airline to hand over possession of the premises by September 15, pending disposal of the case. The court has also taken an undertaking from Kannan that in case the court ruled in favour of Air-India at a later date, the tenant would have to return the premises.

On July 6, 1998, Principal Judge A S Aguiar quashed the eviction order dated January 6, 1996, issued by Air-India’s estate officer. The airline then had filed a writ petition in the Bombay High Courtchallenging the city civil Court order.

In his ruling, Judge Aguiar took into consideration a set of guidelines issued in 1992 by the Ministry of Urban Development under the PPA. The judge observed that Air-India’s action for eviction is “discriminatory and in direct contravention to the guidelines issued by the ministry”. He further held that the actions appear to be “motivated and malafide”.

Apart from Air-India, other public limited companies that have leased out land and property include the Life Insurance Corporation (LIC) and various nationalised banks.

Numerous eviction cases under the PPA are also pending in the courts or are at estate officer levels. Legal experts say the City Civil Court judgement will set a precedent as it is binding on all estate officers here.