Authority: High Court of Bombay at Goa

Order Date: 24 September 2026

Case Overview

  • Petitioner: M/s Novel Cuisines Private Limited, Mumbai, represented by Advocate Mr. Pranay Kamat.
  • Respondents: M/s ABC Enterprises (partnership) and Mr. Tahir Isani, represented by Advocates Mr. Preetam Talaulikar and Ms. Sara Desai.
  • Lease Deed executed on 31 July 2017 for Shops No.15 and 16, Magnum Centre, M.G. Road, Panaji, for a six‑year term commencing 16 Oct 2017 and expiring 15 Oct 2023.
  • Rent schedule: Rs.1,60,000 per month (including GST) for the first three years; increased to Rs.1,84,000 per month for the second three‑year period, with a contractual clause (5.4) requiring a 15% increase at the end of every three‑year period.
  • Petitioner served notice of lease termination before expiry; respondent claimed a purchase agreement which petitioner denied.
  • On 20 July 2023 petitioner reiterated termination and demanded vacancy by 15 Oct 2023 with all dues cleared.
  • Respondent sought extension; on 13 Oct 2023 indicated inability to vacate; on 28 Dec 2023 submitted an affidavit‑cum‑undertaking to vacate by 31 Mar 2024, which petitioner accepted.
  • Respondent paid rent of Rs.1,84,000 for the period 16 Oct 2023 to 15 Jan 2024, then ceased payments and repeatedly requested further extensions without vacating.
  • Petitioner instituted Special Civil Suit No.42/2024/B before the Civil Judge, Senior Division, Panaji, seeking declaration, eviction, recovery of compensation, and permanent injunction, along with an application under Order 39 Rule 10 and Order XV‑A of the Code of Civil Procedure, 1908.
  • Trial Court allowed the application, directing respondent to deposit Rs.12,28,000 within 75 days and thereafter continue depositing Rs.1,84,000 each month until final disposal of the suit.
  • Petitioner filed the present writ petition (Writ Petition No.273 of 2025) challenging the trial court order, arguing that the lease clause mandates a 15% rent increase after the six‑year term, i.e., rent should be Rs.1,84,000 plus 15% (Rs.2,11,600) plus GST from 15 Oct 2023 onward.
  • Respondent contended that any additional rent or compensation should be decided at final suit disposal and that the trial court’s direction to continue paying the last agreed rent was appropriate.
  • The Court examined Clause 5.4 of the lease deed, the statutory provisions of Order XV‑A (Bombay Amendment) and relevant Supreme Court precedent (Atul J. Doshi & Others v. Pramukh Properties & Developers Pvt Ltd, 2025 DGLS (SC) 1668), which emphasizes protecting landlords’ interests by requiring licencees/lessees to deposit rent/licence fee during pending eviction suits.

Final Outcome

  • The writ petition is partly allowed.
  • The impugned order dated 07 May 2025 (exhibit D‑4) is modified.
  • Respondent Defendant shall deposit arrears of rent and continue to deposit rent with a 15% increase over the last rent of Rs.1,84,000 (i.e., Rs.2,11,600) from 15 Oct 2023, in addition to applicable GST, as per the lease terms.
  • All other provisions of the impugned order remain unchanged (mutatis mutandis).

Topics: Lease Dispute, Court Order