TaxTMI 
TaxTMI 
2007 (4) TMI 761
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....411, New Udyog Mandir Compound, Mogul Lane, Mahim, Mumbai-400 016; (ii) In the alternative, appointment of a Receiver in respect of the premises with a direction to collect compensation at the rate of ₹ 35,000/-per day from the Respondent or any occupant for payment to the Appellant; and (iii) A direction to the Respondent to deposit an amount of ₹ 71,46,150/- as security towards the claim of the Appellant in arbitration. 3. By a leave and licence agreement, the Appellant agreed to permit the Respondent, use and occupation of the premises in dispute for a period of nine years from 10th March 1997 until 9th March 2006. An arbitration clause is contained in the leave and licence agreement. A service agreement and a deposit agreement were also entered into between the parties and the Respondent is stated to have deposited an interest free amount of ₹ 2 crores with the Appellant. In pursuance of the licence granted by the Appellant, the Respondent is alleged to have inducted a sub-licensee. Disputes have arisen between the parties and there was an exchange of correspondence to which a reference has been made in the Arbitration Petition. The Appellant claims to ha....
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.... -(2) Nothing contained in Sub-section (1) shall apply to suits or proceedings for the recovery of possession of any immovable property, or of licence fee or charges or rent thereof, to which the provisions of the Bombay Rents, Hotel and Lodging Rates Control Act, 1947, the Bombay Government Premises (Eviction) Act, 1955, the Bombay Municipal Corporation Act, The Maharashtra Housing and Area Development Act, 1976 or any other law for the time being in force, apply. 7. Sub-section (1) of Section 41 as it stands now commences with a non-obstante provision which operates qua anything contained elsewhere in the Act. The Court of Small Causes, subject to subsection (2) has the conferred with the jurisdiction to entertain and try all suits and proceedings between a licensor and licensee or a landlord and tenant relating to recovery of possession of immovable property or the recovery of licence fees, charges or rent in Greater Mumbai. However, by Sub-section (2), the legislature has mandated that the provisions of Sub-section (1) shall not apply to suits for the recovery of possession or of licence fee, charges or rent to which Bombay Rent Act, certain other Acts stipulated therein or an....
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....t Act, 1887: Since these amendments were of drastic nature, it was considered desirable to watch the working of the new Chapter VII inserted in the Presidency Small Cause Courts Act, 1882, before similar amendments are made in the Provincial Small Cause Courts Act, 1887, which is in force outside the area of Greater Bombay. The experience regarding the working of the new Chapter VII inserted in the Presidency Small Cause Courts Act, 1882, is found to be most satisfactory to the litigants, Judges and members of the Bar. It is necessary to make similar provisions in the Provincial Small Cause Courts Act, 1887. It is, therefore, proposed to insert in the said Act a new Chapter IV-A1 before Chapter IV-A on the lines of the new Chapter VII of the Presidency Small Cause Courts Act, 1882, with necessary modifications. Consequently it is also proposed to delete Clauses (4), (8), (25) and (26) and amend Clauses (13) and (38) in the Second Schedule to the Provincial Small Cause Courts Act, 1887, so as to bring the suits covered by these clauses under the jurisdiction of Small Cause Court as recommended by the Law Commission of India in Chapter 13 of its 14th Report. 8. In so far as the am....
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....s to obliterate the exclusive jurisdiction of the Presidency Small Cause Courts Act, 1882 under Section 41 of the Act. 10. On the contrary, the Court would have due regard to the fact that the Legislature had a stated object - conceived in the public interest -in conferring exclusive jurisdiction to deal with matters between licensors and licensees or between landlords and tenants on the Small Causes Court. Rent Control Legislation constitutes a statutory regulation of the relationship between landlords and tenants and between Licensors and licensees in the public interest and as a matter of protecting public welfare. The question whether the Small Causes Court has exclusive jurisdiction must be understood in the backdrop of the object which the legislature intended to subscribe. A comprehensive remedy has been provided. Sub-section (1) of Section 42 provides an appeal from a decree or order made by the Court of Small Causes exercising jurisdiction under Section 41 to a Bench of two Judges of the Court. In Natraj Studio Pvt. Ltd. v. Navrang Studio, (supra), the Supreme Court had occasion to consider the question as to whether an arbitration agreement could operate in respect of a ....