The Municipal Corporation of Greater Mumbai & Ors. v. Century Textiles and Industries Limited & Ors.

The Municipal Corporation of Greater Mumbai & Ors. v. Century Textiles and Industries Limited & Ors.

“VIII To use the demised premises (except such portions thereof as contain shops, caretakers’ quarters, and the like) exclusively as dwellings for the members of the poorer classes, being persons employed by the Lessees in the course of their business, and the families of such persons, except in so far as there may not be sufficient numbers of such persons willing to occupy the same, and in any case only for members of the poorer classes. And in particular not to use the demised premises or any part thereof, or permit the same to be used as a public house, refreshment room, booth, or shop for the sale for consumption either on or off the demised premises of intoxicating liquors, whether country or foreign, and whether by retail or wholesale, or for any other purpose whatsoever otherwise than as dwellings, except with the previous consent in writing of the Board, and not at any time to permit stables, factories, workshops, or workplaces on the demised land. And not to do or suffer to be done on the said premises anything which may be or become noisome, injurious, or offensive to the Board or the owners or occupiers of this or any other property in the neighbourhood.”

65. Moreover, the Preamble to the 1925 Act also clearly states that it “was enacted with a view to make provision for the improvement and for the future expansion of the City of Bombay by forming new and altering streets, by removing or altering insanitary buildings in certain areas, by providing open spaces for better ventilation and for recreation, by constructing new sanitary dwellings for certain classes of the inhabitants of the said city and for the Bombay City police, by laying out vacant lands and by divers other means;”. While the Respondent No.1 would have been allowed to use it for commercial purposes had the land been duly conveyed to them, it has already been shown that conveyance was never granted in the sale deed dated 1928, nor was any “cost” paid for the conveyance. The lease deed, by itself, did not confer any rights to convert the usage of the lands for commercial purposes.

66. It is clear that the protective and welfare-oriented character of the arrangement is integral to the statutory objective. The inclusion of Clause 2(VIII) in the lease deed was not a casual insertion; it was intended to ensure that the property would serve as an instrument of

p. 360

Digital Supreme Court Reports

social betterment by housing those who are economically vulnerable. This provision, coupled with the Preamble’s emphasis on “constructing new sanitary dwellings for certain classes of the inhabitants,” reflects a deliberate legislative policy to secure tangible benefits for the poorer sections of society. The statutory and contractual framework is not merely concerned with property rights and transactions in the abstract; it aims to harness urban development to serve the pressing social needs of the community. By seeking to redirect the property towards commercial exploitation, Respondent No.1 threatens to erode the very foundation upon which the original agreement stood. The contractual language and statutory purpose are both premised on ensuring that the “demised premises” remain dedicated to providing adequate housing to those otherwise struggling to find decent living conditions in a rapidly expanding metropolis. To ignore or circumvent these conditions would nullify the intended social function of the property and transform a carefully crafted scheme of public welfare into a mere instrument of private profit.

67. Such a departure from the intended purpose is not only a breach of the lease conditions but also a subversion of the policy that animated the entire statutory regime. The legislation and the contract work in tandem to ensure that urban improvement aligns with the welfare of weaker segments. When land allocated under a special scheme, particularly one centred on “poorer classes” accommodation, is sought to be commercially exploited, it represents a direct affront to the spirit of the enactment. Rather than addressing housing inadequacies and improving urban life for those in need, the resource would be diverted to profit-making ventures that do nothing to alleviate the conditions of the underserved.

68. This conduct amounts to an abuse of beneficial legislation. The 1925 Act was clearly intended to secure broader societal goals— better sanitation, improved living standards, and well-planned urban growth that includes and benefits marginalized communities. Allowing Respondent No.1 to disregard these obligations would open the door to hollowing out the protections and advantages established by the statute. It would set a precedent where statutory schemes designed to uplift vulnerable groups could be co-opted for purely commercial ends, undermining the trust and faith that must exist between public authorities, private actors, and the most vulnerable segments of the population.

p. 361

The Municipal Corporation of Greater Mumbai & Ors. v. Century Textiles and Industries Limited & Ors.

69. In essence, the entire arrangement is anchored on a quid pro quo : the property is leased on special terms, with minimal rent and under carefully prescribed conditions, to ensure that the less-privileged receive tangible benefits. When the lessee attempts to convert this arrangement into a vehicle for commercial gain, it repudiates the fundamental bargain. The public trust reposed in the private entity to serve a greater good is thus betrayed. This not only harms the class of beneficiaries whom the legislation and agreement were designed to protect, but also imperils the broader public interest by allowing beneficial legislative frameworks to be distorted and exploited contrary to their genuine purpose.

70. For all the reasons recorded above, the judgment of the High Court cannot be sustained. Accordingly, the appeal is allowed, the impugned judgment of the High Court is set aside, and the writ petition is dismissed.

71. Pending application(s), if any, shall stand disposed of.

Result of the case: Appeal allowed