Institutions
Sell out at the Ripon Club?
Members of the Ripon Club authorized the trustees to negotiate a settlement with the landlord
At a stormy one hour extraordinary general meeting (EGM) on December 8, 2016 the trustees, managing committee and members of the 132-year-old Ripon Club (RC) engaged in a heated debate over the merits and demerits of surrendering one of the two floors of the Club premises to the landlord to settle a six-year-old suit for eviction. Finally the members agreed to permit the trustees to negotiate a settlement which includes "sale” of a portion of the premises with the M. N. Wadia Charities that own the building.
The original resolution was watered down to exclude the word "surrender” of the premises and also altered to require the Club trustees to place before the members within a year the final terms for discussion/approval. The Club occupies the top two floors of the M. N. Wadia Building at 123 Mahatma Gandhi Road, once the financial and business hub of the city. The Club offers breakfast, lunch and tea but no dinner. The third floor is used for dining and lounging while the fourth floor comprises a billiard table and an open terrace in the rear portion. As the number of Parsis declined and establishments moved towards the suburbs, the membership and utilization of the Club’s premises suffered.
The original resolution was watered down to exclude the word "surrender” of the premises and also altered to require the Club trustees to place before the members within a year the final terms for discussion/approval. The Club occupies the top two floors of the M. N. Wadia Building at 123 Mahatma Gandhi Road, once the financial and business hub of the city. The Club offers breakfast, lunch and tea but no dinner. The third floor is used for dining and lounging while the fourth floor comprises a billiard table and an open terrace in the rear portion. As the number of Parsis declined and establishments moved towards the suburbs, the membership and utilization of the Club’s premises suffered.
Bust of Sir Pheroze-shah Mehta on the third floor Photo: Jasmine D. Driver
"We are not giving up any of the facilities,” assured RC trustee Mehli Cama. "The billiard table will be brought down.”
"We are zero in funds,” proclaimed trustee Jimmy Pochkhanawalla. "Eight people eating lunch and eight people playing billiards is not enough” to fill the Club’s coffers. He termed the proposal to alienate half the Club’s premises "a golden opportunity on our hands” to settle the costly litigation and enrich the Club. He said the Club had already spent Rs 4,40,000 (US $ 6,520) on the litigation over the past six years and predicted the total cost for the Small Causes Court trial alone would be Rs 20,00,000 (US $ 29,638). Mesne profit could also be levied by the Court which could result in the Club having to cough up nine to 10 lakh rupees per month as rent. He claimed a social club could not seek protection under the Maharashtra Rent Control Act and that the suit had been filed under the Transfer of Property Act.
This statement was challenged by lawyer and Club member Kurus Presswalla who stated, "I am willing to say the Rent Act is applicable.” Presswalla said he was agreeable to even give up both the floors if the amount could buy the Club smaller ownership premises in the same area.
Member and lawyer Anosh Shroff suggested a brief be made and given to senior counsels who are Club members such as retired Supreme Court judges Sam Bharucha, Sam Variava or other eminent jurists such as Tehmtan Andhyarujina, Navroz Seervai and Dinyar Madon for their opinion. Shroff said one would have to see the "purpose for which the license had been given and whether there was any violation of the terms. This is premature,” he said, referring to the proposed negotiations. He recommended a larger negotiating team be formed and felt the trustees by themselves may not be able to derive the best terms possible. "Handing over the property is the easiest thing to do.”
Member Rustom Irani said "as an Irani I don’t like to sell but buy. We should buy an asset.”
A suggestion has been made that the Club admit full-fledged lady members to augment their funds but the rules have not been amended to date. The Club admits women only as associate members without voting rights. Accordingly Simin Patel, the un-married daughter of a member was asked to leave the EGM.
The Club’s president is Sir Dinshaw Petit, fifth baronet, the vice president is Rohinton Dhalla and trustees are Cama, Dhalla, Jehangir Chowna, Xerxes Dastur and Pochkhanawalla.
A similar resolution to surrender the fourth floor was made in 2008 and turned down by 90% of the members present at the meet. Referring to the then rejection as "a slap to the face” of the landlord, Pochkhanawalla said this time they thought it prudent to first consult the general body if the negotiations for surrender/sale should be held.
The affidavit of evidence on behalf of the plaintiff trustees, namely Burjor Antia, Jamshed Setna, Homi Talati and Khushroo Bahadurshaw states the area of the Club comprises "8,051 sq ft on the third floor and 4,073 sq ft on the fourth floor plus the terrace equivalent to 3,599 sq ft.”
The affidavit noted a lease for 10 years was executed on May 18, 1938 "for the purpose of a Club house.” The Wadia Charities requested an increase in rent but the RC not only "declined the payment of increase in rent (but) also for the payment of property taxes and other payments.” The landlords alleged that the Club was in arrears of Municipal property tax and water charges and "despite several requests made from time to time… did not relent.”
The president of the RC at that time, Rusi Sethna, denied the allegations and stated the taxes "are not based on the ratable value but have been charged at the whims and wishes” of the building management.
That refusal may have finally prompted the trustees to file the suit.
"We are zero in funds,” proclaimed trustee Jimmy Pochkhanawalla. "Eight people eating lunch and eight people playing billiards is not enough” to fill the Club’s coffers. He termed the proposal to alienate half the Club’s premises "a golden opportunity on our hands” to settle the costly litigation and enrich the Club. He said the Club had already spent Rs 4,40,000 (US $ 6,520) on the litigation over the past six years and predicted the total cost for the Small Causes Court trial alone would be Rs 20,00,000 (US $ 29,638). Mesne profit could also be levied by the Court which could result in the Club having to cough up nine to 10 lakh rupees per month as rent. He claimed a social club could not seek protection under the Maharashtra Rent Control Act and that the suit had been filed under the Transfer of Property Act.
This statement was challenged by lawyer and Club member Kurus Presswalla who stated, "I am willing to say the Rent Act is applicable.” Presswalla said he was agreeable to even give up both the floors if the amount could buy the Club smaller ownership premises in the same area.
Member and lawyer Anosh Shroff suggested a brief be made and given to senior counsels who are Club members such as retired Supreme Court judges Sam Bharucha, Sam Variava or other eminent jurists such as Tehmtan Andhyarujina, Navroz Seervai and Dinyar Madon for their opinion. Shroff said one would have to see the "purpose for which the license had been given and whether there was any violation of the terms. This is premature,” he said, referring to the proposed negotiations. He recommended a larger negotiating team be formed and felt the trustees by themselves may not be able to derive the best terms possible. "Handing over the property is the easiest thing to do.”
Member Rustom Irani said "as an Irani I don’t like to sell but buy. We should buy an asset.”
A suggestion has been made that the Club admit full-fledged lady members to augment their funds but the rules have not been amended to date. The Club admits women only as associate members without voting rights. Accordingly Simin Patel, the un-married daughter of a member was asked to leave the EGM.
The Club’s president is Sir Dinshaw Petit, fifth baronet, the vice president is Rohinton Dhalla and trustees are Cama, Dhalla, Jehangir Chowna, Xerxes Dastur and Pochkhanawalla.
A similar resolution to surrender the fourth floor was made in 2008 and turned down by 90% of the members present at the meet. Referring to the then rejection as "a slap to the face” of the landlord, Pochkhanawalla said this time they thought it prudent to first consult the general body if the negotiations for surrender/sale should be held.
The affidavit of evidence on behalf of the plaintiff trustees, namely Burjor Antia, Jamshed Setna, Homi Talati and Khushroo Bahadurshaw states the area of the Club comprises "8,051 sq ft on the third floor and 4,073 sq ft on the fourth floor plus the terrace equivalent to 3,599 sq ft.”
The affidavit noted a lease for 10 years was executed on May 18, 1938 "for the purpose of a Club house.” The Wadia Charities requested an increase in rent but the RC not only "declined the payment of increase in rent (but) also for the payment of property taxes and other payments.” The landlords alleged that the Club was in arrears of Municipal property tax and water charges and "despite several requests made from time to time… did not relent.”
The president of the RC at that time, Rusi Sethna, denied the allegations and stated the taxes "are not based on the ratable value but have been charged at the whims and wishes” of the building management.
That refusal may have finally prompted the trustees to file the suit.
◆ ◆ ◆
From the archive