Mumbai The Bombay high court (HC) has held that Bed and Breakfast (B&B) outlets in residential units that are recognised by the Maharashtra Tourism Development Corporation (MTDC) are not exempted from licence rules of the civic body.
In light of this observation, the HC set aside an appeal by a Vile Parle (W) B&B against a seizure notice issued by the Brihanmumbai Municipal Corporation (BMC). As the outlet had failed to secure appropriate food and fire safety licences from the corporation, the civic body had issued them a notice.
The HC held that in light of section 394 of the Mumbai Municipal Corporation (MMC) Act, the civic corporation was entitled to seize the objects being used in the B&B.
The single-judge bench of justice Bharati Dangre, while hearing the interim application in a suit filed by Harmesh Singh Chaddha through advocate Anuj Narula, was informed that the application was appealing against a previous order in the suit wherein his prayer for an interim relief against the BMC action had been rejected.
Narula informed the court that as the B&B was already granted recognition by the MTDC and its functioning was governed by the tourism department rules, the claim of the civic authority could not be allowed as it would imply two separate authorities controlling the functions of the outlet. The advocate further submitted that as functioning of the B&B was not classified as a “trade”, the BMC rules for lodging and hotels could not be applied.
In light of these submissions, Narula submitted that the January 13 inspection report and January 14 seizure notice was bad in law and should be set aside.
Chaddha’s father has been running the B&B outlet since 2010. After his demise, it underwent a name change and is currently known as JC Chalet.
In the suit, Chaddha had claimed that only five rooms on the ground floor of the bungalow at Juhu Tara road were being used for B&B, while six rooms on the first floor were occupied by his family. However, based on a complaint, the BMC had conducted an inspection and had found that 11 rooms on each floor were being used for B&B without the requisite permission.
While opposing the appeal, advocate Dhruti Kapadia for the BMC said, “It is quite possible in a situation that to carry out a particular industry/establishment, licence/permission from multiple authorities is required.”
She further added that for a hotel/lodge/eating house, the permission from the local health department of the Corporation, the building department, the fire safety department, etc, are required to be obtained apart from the licence from the Food Safety and Standards Authority of India, registration under the Shops and Establishment Act, 1948, none of which had been obtained by Chaddha.
In light of these submissions, Kapadia stated that the BMC had issued the inspection note wherein it had asked the B&B to stop offering the services within seven days failing which it would seize the items inside the premises.
After hearing the submissions, the bench observed, “This registration/permission to operate an establishment of B&B facility in a residential house is not a purely commercial venture as what is expected is, some of the rooms of the residential house, are permitted to offer B&B facility. This, however, prima facie will not absolve the establishment to obtain necessary other permission/licences which are required for its operation. The property is not exempted completely from the tax, but a certain concession is granted.”
The bench also observed, “The MTDC prima facie has not intended to do away with the statutory requirements or denude the Corporation of its power to control the activities including any trade activity being undertaken within its jurisdiction.”
The court, while dismissing the appeal, said that the refusal for interim reliefs was valid. “When the Officers of the defendant (BMC) visited the premises, the plaintiff was using more rooms and beds in the suit premises than actually permitted to him by MTDC itself, reflecting that the plaintiff himself was carrying an activity beyond the permission granted by the MTDC.”