The Supreme Court has held that government companies having a total paid up share capital of more than Rs 1 crore are not entitled to protection from eviction in Maharashtra.
While noting that one of the reasons for enacting the rent control legislation was to prevent exploitation of the tenants by the landlords, the court, however, said, "The pegging down of rent, coupled with the inability of the landlord to evict the tenants, has given rise to unlawful tendencies."
The ruling was given by a bench headed by Justice S H Kapadia while allowing the appeals of Leelabai Gajanan Pansare & Ors and Hongkong & Shanghai Banking Corporation Ltd.
It said Oriental Insurance Company Ltd, United India Insurance Company Ltd, Bharat Petroleum Corporation Ltd and such other government companies having a total paid up share capital of more than Rs 1 crore are not entitled to protection from eviction under the Maharashtra Rent Control Act.
However, the court said that decree against the insurance companies mentioned above and BPCL for eviction shall not be executed for a period of one year commencing from the date of the judgment.