Bombay HC allows attachment of Cambata building

The high court restrained the tenants from subletting their premises.

Update: 2017-02-02 00:35 GMT
The collector's office seals Mumbai's iconic Eros Cinema at Cambata Building following a legal dispute involving Cambata Aviation. (Photo: Shripad Naik)

Mumbai: The Bombay high court while disposing off three petitions filed by tenants of Cambata Trust building has sustained the attachment notices issued against them by the district collector. The high court restrained the tenants from subletting their premises.

The collector’s office also assured the court that it would not initiate any action like sealing the entire building without issuing proper notices. The collector’s office had initiated the attachment and sealing procedure of Cambata Aviation premises after it failed to pay the salaries of 1,200 employees to the tune of Rs 4,45 crore.  

Justice K.K. Tated was hearing the petition filed by Galaxy Aviation, Bank of India and United India Assurance after the collector had sealed off their premises on January 19 during an action to recover dues of Cambata Aviation employees. The petition by the three businesses had claimed that they were tenants and hence the action by the collector was against their interest. The court on January 19 and 20 had upheld the contentions of the tenants and directed the collector to de-seal the premises.  

On Wednesday, the tehsil officers through counsel Kedar Dighe and others, while filing their reply, said that the order of the labour court to recover the amount due to the employees of Cambata Aviation would be executed subject to protection of rights of the tenants. After counsels for the tenants advocate Chirag Mody and others pointed out that they had not been served any notice before the sealing process was undertaken, the tehsil officers assured the court that henceforth they would not initiate any action without proper notice.

After hearing the reply, the court said that the attachment notice and notice of demand stood and the collector office was to determine the recovery of the dues as per the law. The court also directed the tenants not to create third party rights to the premises and disposed off the petitions.

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