Summary: The Bombay High Court ruled on a long-standing conflict involving Mrs. Godavaridevi and the State Trading Corporation (STC) over extra profits for office spaces in Mumbai. The court sided with the landlords, allowing them to claim higher profits than initially agreed.
The case involves Mrs. Godavaridevi Agrawal, a housewife from Mumbai, and the State Trading Corporation of India Ltd. (STC). The dispute centered around office spaces located at Nariman Point, Mumbai, which STC occupied beyond the lease period. The landlords sought extra profits for this unauthorized occupation.
STC's Argument
STC, represented by Senior Advocate Mr. Anil Singh, argued that the lease agreement limited compensation to Rs. 12 per sq.ft. per month. They contended that this amount was the maximum payable, regardless of the actual extra profits.
Landlords' Standpoint
The landlords, including Mrs. Godavaridevi, argued that the Rs. 12 rate was a penalty, not a cap on extra profits. They asserted their right to claim higher profits based on the property's value and STC's unauthorized occupation.
Judge M. M. Sathaye's Ruling
Judge Sathaye ruled in favor of the landlords, allowing them to claim higher extra profits. The court found that Clause 15 did not limit the landlords' rights to seek additional compensation.
Key Quotes from the Judgment
"The words ‘without prejudice to other rights and remedies’ in Clause 15 allow landlords to claim higher extra profits."
The court rejected STC's plea to cap the compensation, emphasizing the distinction between penalties and extra profits.
The Bombay High Court ruled that Mrs. Godavaridevi and other landlords could claim higher extra profits than the Rs. 12 per sq.ft. originally agreed upon, setting it at Rs. 150 per sq.ft. This decision highlights the importance of clear lease agreements and supports landlords' rights to fair compensation for unauthorized property use.
