SC upholds order to evict MSEB Holding, others from HSBC building
This story was originally published at 18:13 IST on 25 March 2025
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NEW DELHI – The Supreme Court has upheld a Bombay High Court order, directing eviction of MSEB Holding Co. Ltd. and others from the two floors of the Hongkong & Shanghai Banking Corp. Ltd. building in Mumbai and handing over its possession to HSBC. "...we are not inclined to interfere with the impugned judgment and order of the high court; hence, the special leave petition is dismissed," said the top court.
However, the apex court granted liberty to the petitioners to vacate and deliver peaceful possession of the premises in favour of Hongkong & Shanghai Banking Corp. by Dec. 31, upon filing of a requisite undertaking by Apr. 17 for the same. In default of filing of the requisite undertakings by the stipulated date, the protection granted by this order shall stand revoked and Hongkong & Shanghai Banking Corp. shall be free to initiate proceedings for execution of their eviction suit, the court added.
The dispute pertains to a leasehold property originally by the predecessor of HSBC, namely Mercantile Bank Ltd., to the then governor of Bombay through lease deeds in 1953. Maharashtra State Electricity Board, on behalf of the governor, had occupied the premises from 1954 and paid rent accordingly.
In 1965, the statutory rights of the governor of Bombay in respect of the premises got vested in the state of Maharashtra, implying that the latter stepped into the rights of the governor. Maharashtra State Electricity Board continued to occupy the premises and pay rent to Hongkong & Shanghai Banking Corp.
Thereafter, HSBC issued termination notices in 1992, 1998, and 2000, which were contested by Maharashtra State Electricity Board. The Maharashtra State Electricity Reforms Transfer Scheme in 2005 transferred all properties, rights, and liabilities vested in the electricity board to the state government, which was further re-vested to the four companies namely, Maharashtra State Electricity Distribution Co. Ltd., Maharashtra State Power Generation Co. Ltd., Maharashtra State Transmission Co. Ltd. and MSEB Holding Co. Ltd.
Subsequently, HSBC filed an eviction suit in the Small Causes Court, Mumbai, seeking possession of the premises, which ruled in favour of MSEB Holding Co. Ltd. and others. When its appeal was also dismissed by the appellate bench of the Small Causes Court, HSBC moved the high court, which favoured them and ordered MSEB Holding and others to evict the property. End
Reported by Surya Tripathi
Edited by Akul Nishant Akhoury
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