Judgment on Right of Lessor to Inspect Premises Before Accepting Possession.


26 November 2024 Property Law >> Personal Law  

The case of Saraswat Co-operative Bank Limited, Mumbai v/s Prashant Yeshwant Gokhale, involves a dispute between a lessee (judgment debtor) and a lessor (decree holder) regarding the inspection of a leased property before the lessor accepts possession. The lessee had already handed over the keys to the property as per a court order, but the lessor insisted on inspecting the premises to assess its condition before accepting possession.

The lessee challenged a recent court order that allowed the lessor to inspect the property with the assistance of an engineer and approved valuer. The lessee argued that a similar request for inspection had been rejected earlier, and that the lessee was unaware of the property's condition after the keys were handed over.

 
 

The court ruled that the lessor had the right to inspect the premises before accepting possession, as per the provisions of the Transfer of Property Act. The inspection was intended to ascertain the condition of the property and determine if any alterations or damages had occurred. The court clarified that the appointed inspector (commissioner) should only report on what they observe during the inspection and not offer opinions on alterations or damages. The appellate court was tasked with resolving further issues based on the existing evidence.

The order also outlined that if any issues arose regarding the possession handover or inspection, the concerned party could approach the appellate court for further directions. The writ petition was disposed of with these directions.