A division bench of justices A S Oka and Revati Mohite-Dere was hearing a petition filed by the tenants of the building challenging the municipal commissioner's May 5 order.
The court, however, also said that the tenants' rights must be protected.
The commissioner had passed the order after the High Court directed him to hold a meeting and decide whether demolition was necessary or the building could be repaired.
"The building needs to be pulled down as it is beyond repair. This has been stated in the civic body's technical advisory committee. The commissioner's view will have to be accepted," the High Court today said.
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The judges noted that while earlier the LIC had indicated that if there was a redevelopment, tenants would be accommodated in the new building, today it changed its stand and said the tenants won't have the right to be accommodated in the new building.