Supreme Court Upholds Bombay HC Ruling: Hotel Operator Not Deemed Tenant Under Rent Act
The Supreme Court dismissed an appeal seeking deemed tenancy rights under Section 15A of the Bombay Rent Act, affirming that a 1967 hotel management agreement constituted a business conduction contract, not a leave-and-license arrangement. The bench emphasized strict interpretation of contractual terms under Sections 91-92 of the Evidence Act, rejecting oral evidence to alter written clauses. The dispute involved a Dadar-based hotel operator claiming tenancy protection after the owner terminated the agreement. The Court ruled that royalty payments and operational control clauses clearly established a business conduction relationship, not tenancy. The judgment reinforces contractual sanctity in landlord-tenant disputes under rent control laws.
ANNAYA KOCHA SHETTY (DEAD) THROUGH LRS
VERSUS
LAXMIBAI NARAYAN SATOSE SINCE DECEASED THROUGH LRS & OTHERS