Bombay High Court

Bombay HC: Mahendra Builders Retain Mahendra Chambers Amid Lease Dispute

Updated
Dec 2, 2025 7:11 PM
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Quick Summary: The Municipal Corporation of Greater Mumbai (MCGM) and Mahendra Builders are in a legal fight over a piece of land in Mumbai. The court decided in favor of Mahendra Builders, allowing them to stay on the property until the case is completely settled.

The Case Begins

The case is about a piece of land called 'Mahendra Chambers' in Mumbai. The property was first rented to Lallubhai Dharamchand and others in 1901, and eventually, the lease ended up with the Parsi Panchayat. The lease was supposed to end on December 13, 2000.

The Dispute

On March 4, 2003, Mahendra Builders and the Parsi Panchayat submitted a document to MCGM to transfer the lease. However, MCGM said the lease had ended and took over the property on May 2, 2003. Mahendra Builders disagreed with this, leading to a lawsuit filed on September 13, 2004.

Court's Decision

The court, led by Judges M.S. Sonak and Advait M. Sethna, decided on December 1, 2025, in favor of Mahendra Builders. They said that MCGM must follow the proper legal steps to remove Mahendra Builders, who have been on the property for over 25 years.

"The government can only take back possession in a way that is recognized by the law."

Arguments from Both Sides

  • MCGM's Side: MCGM argued that the lease had ended and that the Parsi Panchayat had no right to transfer it. They claimed that Mahendra Builders were on the property illegally.

  • Mahendra Builders' Side: They argued that MCGM had previously agreed to the lease transfer in 1986. They also mentioned that MCGM had accepted rent and communicated about the lease even after it expired.

The Court's Evaluation

The court found that Mahendra Builders had a strong initial case, meaning they had a valid reason to stay on the property until the case is completely settled.

"The plaintiff has shown they have been in possession for over 25 years."

Summary of the Verdict

The court rejected MCGM's appeal, allowing Mahendra Builders to stay on the property until a final decision is made. The court stressed that MCGM must use the proper legal methods to resolve the dispute.

Tags:
Property Rights
Land Dispute
Maharashtra Rent Control Act