
Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration
Date: 03.10.2026
Bombay HC: Eviction Can Survive if One Valid Ground in Show-Cause Notice Independently Sustains Action
This Short Article has been prepared & written by Advocate Madhumita Jha. The views expressed are based on her interpretation of the law. She can be reached at her email id jhamadhumita27@gmail.com .

In a significant ruling concerning eviction from government premises, the Bombay High Court has upheld eviction proceedings initiated by the Maharashtra Industrial Development Corporation (MIDC) against Jay Steel Rolling and Engineering Works over an industrial plot at Wagle Estate, Thane, holding that the allegation of illegal subletting was common to both the show-cause notice and the final eviction order and was sufficient to sustain the proceedings.
Justice Aarti Sathe declined to exercise the High Court’s supervisory jurisdiction under Article 227 of the Constitution, finding no perversity, arbitrariness or legal infirmity in the order of the Principal District Judge, Thane, which had earlier upheld MIDC’s eviction action.
The Court also reiterated an important administrative law principle: where a quasi-judicial order rests on several grounds, the inclusion of an irrelevant or additional ground does not necessarily invalidate the order if another existing and relevant ground was part of the notice and is independently sufficient to support the action.
Challenge to MIDC Eviction From Wagle Industrial Estate
- The dispute concerned Plot No. B-4, Wagle Estate Industrial Area, Thane.
- Jay Steel challenged the judgment dated 6 February 2020 of the Principal District Judge, Thane, in Regular Civil Appeal No. 19 of 2020. The District Judge had dismissed the company’s appeal and thereby confirmed MIDC’s eviction notice dated 19 March 2019 and subsequent eviction order dated 11 December 2019 under the Bombay Government Premises (Eviction) Act, 1955.
- Jay Steel approached the High Court under Article 227 seeking, among other reliefs, quashing of the District Court judgment, eviction notice and final eviction order.
Industrial Plot Traces Back to 1961 Lease
- The property had a long history.
- On 25 November 1961, MIDC executed an Agreement to Lease in favour of M.B. Patel, proprietor of Mohanlal and Company, for setting up an industry. The industrial undertaking, including the re-rolling mills, fixtures and fittings, was subsequently agreed to be sold to the petitioner for βΉ3.31 lakh.
- On 14 November 1972, MIDC permitted assignment and transfer of the leasehold rights to Lokender Bhagwan Jain and Tejaswani Bhagwan Jain, partners of Jay Steel. A sale certificate was subsequently issued on 2 March 1974 confirming the transaction.
- Following the death of Lokender Bhagwan Jain in December 2013, Amit Lokender Jain sought transfer of the premises in his name. The judgment records that the transfer application made to MIDC on 24 March 2014 had not been acted upon.
MIDC Alleged Unauthorised Subletting
- The dispute escalated when MIDC issued a demand notice on 20 December 2016, alleging unauthorised subletting and demanding βΉ1,51,79,700, with a warning that the Agreement to Lease would otherwise be terminated.
- MIDC subsequently issued a termination notice dated 19 July 2017, directing the petitioner to hand over vacant possession. Jay Steel challenged those actions in Writ Petition No. 9771 of 2017.
- In November 2017, the High Court recorded MIDC’s statement that it had already taken possession of the premises on 2 August 2017 and had drawn a panchnama. That earlier writ petition remained pending.
Fresh Eviction Notice Issued in 2019
- MIDC thereafter issued the impugned notice dated 19 March 2019 under Section 4(2) of the Bombay Government Premises (Eviction) Act.
- The notice alleged breach of Clause 3(j) of the Agreement to Lease on account of unauthorised subletting, as well as failure to enter into a lease deed following transfer of the premises.
- The final eviction order was passed on 11 December 2019, requiring the petitioner to vacate the premises within one month.
- Jay Steel challenged that order before the Principal District Judge under Section 7 of the Act, but its appeal was dismissed on 6 February 2020.
Jay Steel: Final Eviction Order Travelled Beyond Show-Cause Notice
- A central argument before the High Court was that the final eviction order had travelled beyond the grounds contained in the show-cause notice.
- Jay Steel argued that the March 2019 notice identified two alleged breachesβunauthorised subletting under Clause 3(j) and failure to enter into a lease deed after transferβbut that the final eviction order relied upon additional grounds not disclosed in the original notice.
- The petitioner also argued that the eviction order was a non-speaking order, that its reply dated 26 March 2019 had not been considered, and that no personal hearing had been afforded before eviction.
- It relied upon principles of natural justice and decisions including Subhash Vishwanath Kolapkar v. Assistant Collector, Associate Switch Gears and Projects Ltd. v. State of U.P., UMC Technologies (P) Ltd. v. Food Corporation of India, Moonline Express Cargo (P) Ltd. v. Union of India and Atlas Cycles Haryana Ltd. v. State of U.P. & Anr.
MIDC Defends Eviction on Illegal Subletting
- MIDC opposed the petition, arguing that Jay Steel had not properly responded to the eviction notice or appeared before the competent authority.
- MIDC maintained that after possession had earlier been resumed in August 2017, the petitioner had illegally inducted persons into the premises, necessitating fresh eviction proceedings in 2019. It further contended that the premises had not been used for industrial activity but had instead been illegally sublet.
- MIDC relied upon Garment Craft v. Prakash Chandra Goel, (2022) 4 SCC 181, emphasising the limited scope of Article 227 jurisdiction, and State of Maharashtra v. Babulal Kriparam Takkamore, AIR 1967 SC 1353, for the proposition that a quasi-judicial order based on multiple grounds is not necessarily invalid merely because some grounds are unsustainable, provided another relevant ground independently supports the result.
Article 227 Is Supervisory, Not a First Appeal
- The Bombay High Court began its analysis by emphasising the restricted scope of its jurisdiction under Article 227.
- The Court explained that it does not sit as a first appellate court to re-appreciate or re-weigh evidence. Article 227 is essentially a supervisory and correctional jurisdiction, intended to address grave derelictions of duty, flagrant abuse, violations of fundamental principles of law or justice, or unreasonable or perverse findings.
- Such power, the Court stressed, must be exercised sparingly.
Court Rejects Natural Justice Challenge
- The Court rejected Jay Steel’s contention that its reply dated 26 March 2019 had been ignored in violation of natural justice.
- It noted that the petitioner had not pleaded before the District Court that such a reply had been filed. More importantly, on examining the document, the High Court found that the purported reply did not answer the substantive allegations in the eviction notice.
- Instead, it referred to the pendency of the earlier writ petition and requested MIDC not to proceed with eviction until that litigation was decided. The Court therefore concluded that Jay Steel could not successfully invoke breach of natural justice on this basis.
Illegal Subletting Was Common to Both Notice and Final Order
- This became the decisive finding.
- The High Court compared the 19 March 2019 eviction notice with the 11 December 2019 eviction order and found that illegal subletting was expressly common to both.
- Both documents referred to violation of Clause 3(j) of the 25 November 1961 Agreement to Lease.
- The Court therefore rejected at the threshold the petitioner’s contention that the eviction order was invalid merely because it travelled beyond the notice.
Additional Grounds Do Not Necessarily Vitiate a Quasi-Judicial Order
- The High Court agreed with MIDC’s reliance on the Supreme Court decision in State of Maharashtra v. Babulal Kriparam Takkamore.
- The principle applied was that where a quasi-judicial order is founded on several grounds, the inclusion of an irrelevant or non-existent ground does not automatically invalidate the order if another existing and relevant ground independently supports the same conclusion.
- In Jay Steel’s case, illegal subletting constituted such a common and independently sustainable ground. The Court noted that the allegation had neither been disproved nor sufficiently answered by the petitioner.
- This is an important qualification to the general administrative-law rule that a final order ordinarily cannot be founded on grounds wholly outside the show-cause notice: where a valid ground was actually disclosed in the notice and independently sustains the action, additional grounds in the final order do not necessarily invalidate the entire proceeding.
Section 4 Eviction Procedure Was Followed
- The Court also examined Section 4 of the Bombay Government Premises (Eviction) Act, 1955.
- Section 4 permits eviction, among other circumstances, where a person authorised to occupy government premises has sublet the whole or any part without permission or has acted in contravention of the terms under which occupation was authorised.
- Before an eviction order is passed, Section 4(2) requires a written notice specifying the proposed grounds and calling upon all concerned persons to show cause against eviction. The statutory framework also allows the affected person to submit a written statement and documents and to appear through an advocate, attorney or pleader.
- The High Court held that MIDC had complied with these requirements. The eviction notice specified the grounds and afforded Jay Steel an opportunity to show cause, but the petitioner did not submit a proper response answering the charges.
Opportunity Given but Not Properly Availed Cannot Become Natural Justice Violation
- The Court drew an important distinction between denial of an opportunity and a party’s failure to effectively avail itself of an opportunity actually provided.
- It found that Jay Steel had been served with an eviction notice setting out the allegations and had been afforded an opportunity to respond. The petitioner’s cited authorities on natural justice were therefore held inapplicable to the factual circumstances.
- The Court’s reasoning was that this was not a case where MIDC had proceeded without notice; rather, an opportunity was made available but was not properly utilised by the petitioner.
District Court’s Order Neither Perverse Nor Arbitrary
- The High Court ultimately found that the Principal District Judge had properly considered the eviction notice, final order and allegations against Jay Steel.
- It also recorded that possession of the premises was undisputedly with MIDC. The District Court’s judgment was therefore not found to be perverse or arbitrary so as to justify interference under Article 227.
Bombay HC Dismisses Jay Steel’s Petition
- The High Court concluded that both the eviction notice and the final eviction order rested upon the allegation of illegal subletting and that it could not be accepted that the final order had travelled beyond the notice merely because other grounds also appeared in the final decision.
- Finding no infirmity in the District Court judgment or MIDC’s eviction proceedings, the Court dismissed Jay Steel’s writ petition and declined to interfere under Article 227. No costs were imposed.
- Accordingly, MIDC succeeded in defending the eviction proceedings, while Jay Steel’s challenge to the eviction failed.
Cases Referred
The judgment expressly refers to the following authorities:
- Subhash Vishwanath Kolapkar v. Assistant Collector, 2002 (2) Mh.L.J. 50 β relied upon by the petitioner on natural justice.
- Associate Switch Gears and Projects Ltd. v. State of U.P., (2024) 126 GSTR 307 β relied upon by the petitioner.
- UMC Technologies (P) Ltd. v. Food Corporation of India, (2021) 2 SCC 551 β relied upon on show-cause notice and natural justice principles.
- Moonline Express Cargo (P) Ltd. v. Union of India, 2022 SCC OnLine Bom 203 β relied upon by the petitioner.
- Atlas Cycles Haryana Ltd. v. State of U.P. & Anr., 2024 SCC OnLine All 10525 β relied upon by the petitioner.
- Garment Craft v. Prakash Chandra Goel, (2022) 4 SCC 181 β relied upon by MIDC concerning the limited supervisory jurisdiction under Article 227.
- State of Maharashtra v. Ramdas Shrinivas Nayak & Anr., (1982) 2 SCC 463 β relied upon concerning what was raised before the subordinate court.
- State of Maharashtra v. Babulal Kriparam Takkamore & Ors., AIR 1967 SC 1353 β relied upon for the principle that an order based on several grounds may survive if an existing and relevant ground independently sustains it.
Key Legal Takeaway
The judgment carries three notable principles for government-premises eviction and administrative proceedings.
First, a final order containing additional or even unsustainable grounds will not necessarily collapse if a valid ground disclosed in the show-cause notice independently supports the decision.
Second, natural justice requires a meaningful opportunity to respond, but where a statutory authority has issued a notice identifying the allegations and the affected party does not properly answer them, that party cannot automatically convert its failure to respond into a denial-of-hearing challenge. Third, Article 227 is not an appellate jurisdiction for re-weighing facts and evidence. Interference is reserved for jurisdictional errors, perversity, grave procedural failures or violations of fundamental principles of law and justice.
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Source: Bombay High Court
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