Authority: High Court of Judicature at Bombay, Civil Appellate Jurisdiction

Order Date: 24 September 2026

Case Overview

  • Parties: Applicant – M/s. Nishat Trading Co., a partnership firm; Respondents – Ranchhoddas Lotwala Foundation and others (Respondents Nos. 1‑8). The plaintiff is a Public Charitable Trust registered under the Public Trust Act, 1950, owning a ground‑floor shop known as “Nishat Trading Company” at Arya Bhavan, 459/461, S.V.P. Road, Mumbai‑400 004.
  • Nature of Proceedings: Civil Revision Application No. 12693 of 2025 (interim) filed against the judgment and decree dated 4 May 2022 passed by the Appellate Bench of the Small Causes Court in Appeal No. 158 of 2017, which had set aside the Trial Court’s decree in R.A.E. Suit No. 770/1408 of 2004.
  • Background: The Trust alleged that Defendant 1, the tenant of the suit premises, sub‑let part of the premises to Defendants 2 and 3 without permission, violating Section 16(1)(e) of the Maharashtra Rent Control Act, 1999. The sub‑lessees operated a clinic named “Jankharia Imaging”. The Trust sought eviction and injunction.
  • Trial Court Findings: Confirmed unlawful sub‑letting; however dismissed the suit on the ground that the resolution authorising the suit was passed by only two of the five trustees, lacking the required majority.
  • Appellate Court Findings: Reversed the dismissal, holding the suit was maintainable because all trustees had signed the plaint, making a separate resolution unnecessary. It also affirmed the sub‑letting violation and ordered eviction.
  • Arguments on Revision: Applicant contended that a resolution of the majority of trustees was essential, relying on the Cutchi Visa Oswal judgment. Respondents argued that the joint signing of the plaint by all trustees sufficed, citing the Minoo Rustomji Shroff decision.
  • Precedents Cited:
  • Cutchi Visa Oswal Derawasi Jain Pathshala (2004) – requirement of a resolution.
  • Minoo Rustomji Shroff v. Dali Kavasji Gai (2008) – no resolution needed when all trustees sign.
  • J.P. Srivastava & Sons (P) Ltd. v. Gwalior Sugar Co. Ltd. – trustees cannot delegate duties unless trust deed permits.
  • Various High Court decisions supporting the principle that joint signing indicates collective resolution.

Final Outcome

  • The Civil Revision Application No. 12693 of 2025 is dismissed; the appellate order stands, confirming the suit’s maintainability without a separate trustee resolution and upholding the finding of unlawful sub‑letting.
  • The interim application is disposed of, and the parties are directed to comply by 1 October 2026.
  • After the order, counsel for Respondents 7 and 8 sought a 1½‑year period to vacate the premises subject to payment of compensation; the Court noted the request and left instructions for the Applicant’s counsel to take further directions.

Topics: Court Proceedings, Trust Law, Rent Control