‘Rent’ Term Alone Cannot Create Tenancy Rights, Bombay High Court Orders Eviction After 32-Year Legal Battle

Mumbai: The use of the word “rent” in an agreement does not by itself make an occupant a tenant, the Bombay High Court has held while ordering the eviction of a woman from a commercial shop in Navi Mumbai after a 32-year-long legal battle.

Justice Sandeep Marne dismissed petitions filed by Navina Dinesh Shetty challenging a lower appellate court order and directed her to hand over possession of Gala No. 9 at APMC Market, Sector 19, Vashi, to its owner Shaikh Ayub Rehman by September 30, 2026.

Caretaker Agreements At Centre Of Dispute

The dispute arose from two 11-month “Caretaker Agreements” executed in 1994 and 1995. The agreements allowed Shetty to use the shop for payments of Rs 1,800 and Rs 2,000 per month. While the trial court treated her as a tenant, the District Court later held that she was only a licensee and had no tenancy rights.

Upholding the appellate court’s decision, Justice Marne said the entire agreement has to be considered while deciding the nature of the arrangement. “Mere use of the word ‘rent’ in the Caretaker Agreement does not elevate the status of the Petitioner from a mere licensee to that of a tenant,” the court held.

Temporary Licence Cannot Become Permanent Tenancy

The court said treating temporary licences as permanent tenancies would affect the very purpose of such arrangements and could discourage property owners from allowing others to temporarily use their premises.

The High Court also noted the owner’s prolonged legal battle, observing that he “would have never imagined in his wildest dreams” that an arrangement for just 22 months would lead to litigation lasting more than three decades.

The court noted that the occupant had earlier been directed to pay Rs 2,000 per month as compensation from August 14, 1996. However, she stopped paying even this amount after September 2012 and continued to occupy the shop without payment for around 14 years.

The High Court has now directed the trial court to conduct an inquiry into the market-rate compensation, known as mesne profits, payable by Shetty for the unauthorised occupation.

The compensation will be calculated from August 14, 1996, until she finally hands over possession of the shop.

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