The Bombay High Court ruled on a long-standing case involving the State Trading Corporation of India (STC) over extra money owed for properties in Mumbai. The court decided that STC must pay more than initially agreed, affecting two properties at Nariman Point.
This case involves the State Trading Corporation of India Ltd. (STC) and its lease agreements for office spaces in Maker Chamber IV, Nariman Point, Mumbai. The properties in question are office no. 607 (275 sq.ft.) and office no. 601 (1000 sq.ft.). STC was supposed to leave after 20 years but didn't, leading to legal action.
STC's Argument: STC argued that a part of their lease limited extra payments to Rs. 12 per sq.ft. per month after the lease expired. They claimed this was a penalty and should be the maximum amount they pay.
Landlords' Standpoint: The landlords, including Ravinder Singh Indersingh Sehgal and Godavaridevi Agrawal, argued that this part of the lease did not limit extra payments. They believed the payments should match market rates because STC stayed without permission.
The court ruled that:
No Limit on Extra Payments: The lease didn't restrict extra payments to Rs. 12 per sq.ft. The court emphasized that the clause allowed landlords to claim higher amounts.
Judgment for Godavaridevi Agrawal: The court restored the original judgment granting her Rs. 150 per sq.ft. per month, aligning with market rates.
"The person in wrongful possession cannot be heard to say that he has not utilized the property."
"Extra payments are not limited by the lease clause."
The judgment is a significant win for the landlords, reinforcing their right to claim fair compensation for unauthorized occupancy. STC's attempt to limit financial liability was unsuccessful, marking an important moment in how lease agreements are understood.
