Mrs. Varsha Narandas Sejpal v. M/s. New Dholera Shipping & Trading Co. Ltd. & Ors

Megha 13_wp_1555_2026V/s.Varsha Narandas Sejpal and Ors....RespondentsWITHWRIT PETITION NO.4641 OF 2026M/s. New Dholera Shipping & TradingCo. Ltd....PetitionerV/s.Narandas Amratlal Sejpal and Ors....Respondents________________Mr. Jaydeep Deo i/b. Mr. Onkar Gawade for the Petitioner inWP/2033/2026 wp/1556/2026, wp/1555/2026,, wp/1925/2026,wp/1944/2026, wp/1943/2026, wp/1924/2026, wp/1957/2026,wp/1921/2026, wp/1942/2026, wp/1920/2026, wp/1955/2026,wp/1922/2026 and wp/1954/2026.Mr. Sudhanva Bedekar with Mr. Mohammed Najmi for the Petitioner inWP/2307/2026.Mr. Piyush Raheja with Mr. Sharad Bansal, Mr. Sahil Gandhi, Ms. DimpleVora and Mr. Darshil Desai i/b. M/s. Makrand Gandhi & Co. for thePetitioner in wp/4611/2026, wp/4613/2026, wp/4615/2026,wp/4619/2026, wp/4621/2026, wp/4622/2026, wp/4624/2026,wp/4625/2026, wp/4627/2026, wp/4628/2026, wp/4629/2026,wp/4630/2026, wp/4631/2026, wp/4641/2026 and for Respondent inwp/2033/2026, wp/1556/2026, wp/1555/2026,, wp/1925/2026,wp/1944/2026, wp/1943/2026, wp/1924/2026, wp/1957/2026,wp/1921/2026, wp/1942/2026, wp/1920/2026, wp/1955/2026,wp/1922/2026 and wp/1954/2026________________CORAM: SANDEEP V. MARNE, J. DATED: 10 APRIL 2026.P.C.:1)These are cross Petitions filed by Obstructionists and byLessor/Decree Holders challenging the orders passed by the AppellatePage No. 6 of 11 10 April 2026 Megha 13_wp_1555_2026Bench of the Small Causes Court on 2 December 2025 determining theinterim compensation payable in respect of each of the units occupied bythe Obstructionists as a condition for stay to the execution of thejudgment and decree dated 29 January 2014 passed in T.E. & R. SuitNo.230/249 of 2003. 2)I have heard Mr. Jaydeep Deo, the learned counsel appearing forthe Obstructionists, Mr. Bedekar, the learned counsel appearing for theObstructionists in WP/2307/2026 and Mr. Raheja, the learned counselappearing for Lessor/Decree Holders.3)The case involves unique circumstances where a lease wasgranted in respect of the open piece of land. Under the novated term oflease, the Lessee was granted permission to construct building on theleased land and to sell the constructed units to third parties. Though thelease was supposed to be for a period of 99 years, since the lease was notregistered, the Small Causes Court interpreted the terms of the lease as asimple monthly lease terminable under Section 106 of the Transfer ofProperty Act, 1882. This is how recovery of possession of the leased landis directed vide decree dated 29 January 2014 in T.E. & R. SuitNo.230/249 of 2003.4)It appears that the original Lessee had disappeared from thescene apparently because he had already sold the constructed units. Thepurchasers of the units have formed a co-operative society, which filedappeal against decree dated 29 January 2014. The Appellate Courtdetermined interim compensation of Rs.7,05,637/- and directed thePage No. 7 of 11 10 April 2026 Megha 13_wp_1555_2026Society to deposit the same as a pre-condition for grant of stay to thedecree for eviction. It appears that the Society had paid amount ofinterim compensation till December 2017. After January 2018, theSociety defaulted in deposit of amount of interim compensation. Sincethe Society defaulted in payment of amount of interim compensation,the Decree Holders attempted to execute the decree and recoverpossession of the suit property. At this stage, several individual membersof the Society, who are unit owners, presented obstruction to theexecution of the decree. Accordingly, several Obstructionist Notices cameto be registered by the Executing Court. The Obstructionists Noticeshave been rejected by the Executing Court against which theObstructionists have filed appeals before the Appellate Bench of theSmall Causes Court. In those appeals, the Appellate Bench hasdetermined interim compensation of Rs.13,000/- per month in respect ofeach of the units and has directed the Obstructionists to deposit thesame from the date of decree i.e. 29 January 2014. 5)Considering the above position, it is clear that the Societyinitially opposed execution of the decree and tried its luck by filingappeal before the Appellate Bench challenging eviction decree dated 29January 2014. In its appeal, the Society was directed to deposit interimcompensation of Rs.7,05,637/-, which it deposited upto December 2017.After January-2018 neither the Society nor individual Obstructionists/unit occupiers have deposited any interim compensation.6)In my view, therefore, liability to deposit interim compensationby Obstructionists need to be from January-2018. To this limited extentthe Appellate Court has erred in directing to deposit of interimPage No. 8 of 11 10 April 2026 Megha 13_wp_1555_2026compensation from the date of decree i.e. 29 January 2014. IfObstructionists are required to deposit interim compensation from 29January 2014 there shall be double deposit / payment of interimcompensation during 29 January 2014 to December-2017 since Societyhas already deposited interim compensation of Rs.7,05,637/- uptoDecember-2017. 7)So far as quantum of interim compensation fixed by theAppellate Bench is concerned, the Decree Holders have questioned thesame. Since the Decree Holders did not question the quantum of interimcompensation fixed against the Society of Rs.7,05,637/- in my view theycannot now question the quantum of interim compensation ofRs.13,000/- fixed by the Appellate Bench. There are apparently 56 unitsof the building and if amount of Rs.7,05,637/-is divided by 56 units, theamount payable in respect of each unit roughly comes to the tune ofRs.13,000/-. I am therefore, not inclined to interfere in the quantum ofinterim compensation fixed by the Appellate Court. 8)Mr. Deo, the learned counsel appearing for the Obstructionistshas relied upon order dated 6 August 2024 in Civil Writ Petition No.2721of 2024 (Ratnakar Dattatraya Khambe and Ors. V/s. M/s. New DholeraShipping and Trading Company Ltd. and Ors.). However, it appears thatorder dated 6 August 2024 is merely a pro tem arrangement made duringpendency of the said Petition. In that case, the Obstructionistsapparently lost even before the Appellate Bench and have challenged theorder of the Appellate Bench by filing writ petition before this Court. As apro tem arrangement, this Court directed to deposit the interimcompensation of Rs.13,000/- per month from month of February-2024.Page No. 9 of 11 10 April 2026 Megha 13_wp_1555_2026The date of February 2024 is not sacrosanct and cannot be applied in thepresent case. There is no dispute to the position that the Society hasfailed to deposit the interim compensation after January 2018 andtherefore, if Obstructionists are opposing execution of the decree, it istheir responsibility to deposit the interim compensation from January-2018.9)It is contended on behalf of the Obstructionists that some respitebe granted in respect of Covid-19 period due to Pandemic relatedrestrictions. Considering the fact that economic activities had come to agrinding halt and were largely affected during Covid-19 Pandemic periodfrom March 2020 till February-2022, in my view, some concession can begranted to the Obstructionists in respect of said period. It must also beborne in mind that the Obstructionists are ultimately the purchasers ofthe units and have purchased the same under a sanguine hope that theywould acquire ownership in respect of the structures. The decree foreviction is passed essentially on account of failure on the part of theDeveloper to register the condition of lease.10)Considering the peculiar circumstances of the present case, 50%concession deserves to be granted in respect of the period from March-2020 till February-2022 during Covid-19 Pandemic restrictions. 11)Accordingly, I proceed to pass the following order:-(i)Orders dated 2 December 2025 passed by the AppellateBench of the Small Causes Court are modified to thefollowing extent:-Page No. 10 of 11 10 April 2026 Megha 13_wp_1555_2026(a)Quantum of compensation of Rs.13,000/- permonth by the Appellate Bench is confirmed.(b)Obstructionists shall be liable to depositinterim compensation of Rs.13,000/- per monthfrom January-2018 till disposal of the Appeal.(c)Obstructionists shall be entitled to 50%concession in making the deposit of the interimcompensation and they shall deposit amountonly of Rs.6,500/- per month from March-2020to February-2022.(ii)If the Obstructionists deposit the arrears of interimcompensation as modified above, within a period of 8weeks from today, stay to the execution of the decreegranted by the Appellate Bench shall continue to operateduring pendency of the Appeals. (iii)In respect of those Obstructionists, who fail to depositthe interim compensation as modified above, within thestipulated period, the Executing Court shall proceed toexecute the decree only qua their units. 12)With the above directions, all the Petitions are disposed of.[SANDEEP V. MARNE, J.]Page No. 11 of 11 10 April 2026