Mumbai: The Supreme Court has directed Larsen & Toubro (L&T) to hand over the plot housing a bungalow on Pali Hill, Bandra that served as its former chairman Anil Manibhai Naik’s residence for over two decades to more than 15 co-owners.
The conglomerate had taken the prime residential property on lease from the Kothari family and other co-owners in the 1940s. While the formal lease expired in 1970, the landlord group initiated eviction proceedings in 2001 after terminating the tenancy.
During pendency of the litigation, L&T acquired a 7% undivided share in the property from one co-owner and later increased its holding to 29.5%. On this basis, it argued that it had become a co-owner of the plot measuring a little less than an acre and that eviction proceedings could not continue against it.
On March 27, the Bombay High Court rejected L&T’s argument, holding that the objections raised were not bona fide and were tainted with collateral purpose. One co-owner’s objection, particularly when motivated to benefit a tenant, cannot defeat the eviction rights of the remaining co-owners, the court held. Strategic acquisition of minority shares during litigation could not be used to circumvent a lawful eviction decree, it said.
L&T subsequently filed a special leave petition in the Supreme Court. On Monday, justices Prashant Kumar Mishra and NV Anjaria dismissed the appeal, saying the plot in its vacant condition must be handed over to the co-owners – Kantilal Kothari, Premchand Kothari, Ramniklal Kothari, Manish Kothari, Snehal Runwal, Saurabh Kothari, Madhubala Kothari, Shilpa Patel, Saraswati Kothari, Mofatraj Munot, Subhash Kothari, Chandra Munot, Anuj Munot, Ajay Munot, Riddhi Singhvi and PLS Technologies.
L&T representatives refused to comment on the outcome of the litigation.
AM Naik was part of the L&T Group for 58 years. He served as the Mumbai-based conglomerate’s chairman and managing director from December 2003 till September 2023, when he relinquished the charge as group chairman.
