SHAH & CO. BOMBAY versus THE STATE OF MAHARASHTRA & ANR.

SHAH & CO. BOMBAY versus THE STATE OF MAHARASHTRA & ANR.

An assignment of tenancy incidental to a sale of business, even if permitted under section 15 of the Rent Act and relevant Notifications, is deemed to create a vacancy under section 6 of the Requisition Act, giving jurisdiction to the State to requisition the premises. The provisions of the Requisition Act do not infringe Articles 19(1)(f) or (g) as the Act relates to property, not business, and the petitioners cannot claim rights under the assignment, which is a colourable device.

Parties
Petitioner: Shah & Co., Bombay; Respondents: State of Maharashtra & Anr.
Jurisdiction
India
Judgment Date
06 April 1967
Procedural Posture
Writ Petition Under Article 32 of the Constitution of India / Final Judgment
Outcome
Petition dismissed
Legal Topics
Requisition and Acquisition of Property, Control of Tenancy and Assignment, Fundamental Rights Under Article 19, Interpretation of Statutory Notifications
Administrative Law Constitutional Law Property Law Requisition and Acquisition of Property Control of Tenancy and Assignment Fundamental Rights Under Article 19 Interpretation of Statutory Notifications

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Parties

Shah & Co., Bombay

Petitioner

State of Maharashtra & Anr.

Respondents

Procedural Posture

Writ Petition Under Article 32 of the Constitution of India / Final Judgment

Legal Issues

  1. 1 Whether an assignment of tenancy as incidental to the transfer of a going concern constitutes a vacancy under section 6 of the Bombay Land Requisition Act, 1948
  2. 2 Whether the provisions of the Requisition Act infringe Articles 19(1)(f) and (g) of the Constitution of India
  3. 3 Whether Section 15 of the Bombay Rent, Hotel and Lodging House Rates Control Act, 1947, and its Notifications impact the scope of the Requisition Act

Ratio Decidendi

An assignment of tenancy incidental to a sale of business, even if permitted under section 15 of the Rent Act and relevant Notifications, is deemed to create a vacancy under section 6 of the Requisition Act, giving jurisdiction to the State to requisition the premises. The provisions of the Requisition Act do not infringe Articles 19(1)(f) or (g) as the Act relates to property, not business, and the petitioners cannot claim rights under the assignment, which is a colourable device.

Court Disposition

Petition dismissed

Orders

  • Writ petition dismissed; costs awarded to respondents, one set.