SC Dismisses L&T Petition in Pali Hill Property Battle, Orders Eviction
SC Dismisses L&T Petition in Pali Hill Property Battle

The Supreme Court has dismissed a special leave petition filed by Larsen & Toubro, bringing an end to a prolonged legal dispute over a prime residential property on Pali Hill Road in Bandra. The company is now required to hand over vacant and peaceful possession of the bungalow known as 'High Trees', one of the few heritage properties still standing in the posh residential enclave. The dismissal affirms the eviction decree earlier upheld by the Bombay High Court.

Background of the Dispute

The dispute traces back to a tenancy that originated in 1961 with a formal lease that expired in 1970. The landlord group, comprising members of the KC Kothari family and other co-owners, initiated eviction proceedings in 2001 before the Small Causes Court in Bandra after terminating the tenancy. During the pendency of the litigation, L&T acquired a 7% undivided share in the property from Amar Munot, a co-owner who has since passed away, and subsequently increased its holding to 29.5%.

L&T's Legal Arguments

On the basis of its ownership stake, L&T cited a 2017 Supreme Court ruling in the Mangal Builders case to argue that it had become a co-owner and that eviction proceedings could not continue against it. Additionally, the company argued that a partition suit among co-owners, including L&T, was pending, which should affect the eviction case.

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Bombay High Court Ruling

In its judgment delivered on March 27, 2026, Bombay High Court judge MM Sathaye rejected L&T's arguments. The court held that the objection raised by a co-owner who had sold a 7% share to L&T during the pendency of the eviction suit was 'tainted with collateral purpose' and could not adversely affect the maintainability of the suit. The High Court further ruled that the eviction order passed by an appellate bench of the Small Causes Court in 2010 could not be faulted. It stated that one co-owner's objection, particularly when motivated to benefit a tenant, cannot defeat the eviction rights of the remaining co-owners. The court found no perversity in the Small Causes appellate court's eviction order, calling it the 'most probable view', and dismissed L&T's application but stayed the order for six weeks to allow the company to appeal.

Supreme Court Verdict

L&T subsequently filed a special leave petition seeking to appeal the High Court judgment. However, the Supreme Court bench comprising Justices Prashant Mishra and N V Anjaria, at the initial hearing on April 27, stated, 'We are not inclined to entertain these Special Leave Petitions. Accordingly, the Special Leave Petitions stand dismissed.' With this dismissal, the legal battle has concluded, and L&T must now vacate the property where the company's former chairman and present chairman emeritus, A M Naik, has been living for over 20 years.

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