'Sophisticated Form Of Extortion': Bombay High Court Slaps Rs 5 Lakh Costs On 'Unscrupulous' Tenant For Frivolous Petition
2 weeks ago

'Sophisticated Form Of Extortion': Bombay High Court Slaps Rs 5 Lakh Costs On 'Unscrupulous' Tenant For Frivolous Petition

Live Law  

The Bombay High Court while slapping a fine of Rs 5 lakh on a tenant for 'obstructing' redevelopment of a nearly 83-year-old building, observed that often such petitions by tenants amount to 'sophisticated form of extortion' and thus such 'obstructionist' behaviour of the tenants must be deterred.A division bench of Justices Ajay Gadkari and Kamal Khata noted that filing petitions in the court. The Bombay High Court while slapping a fine of Rs 5 lakh on a tenant for 'obstructing' redevelopment of a nearly 83-year-old building, observed that often such petitions by tenants amount to 'sophisticated form of extortion' and thus such 'obstructionist' behaviour of the tenants must be deterred. A division bench of Justices Ajay Gadkari and Kamal Khata noted that filing petitions in the court is the 'quickest and cheapest' method, often resorted to by the tenants to stall redevelopment of old and dilapidated buildings. For instance, even assuming that filing a Writ in the Bombay High Court costs a tenant a certain minimum amount of rupees, the resulting delays can impose significant financial burden on landlords or developers, including mounting costs for alternate accommodations.

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