A division bench of justices V M Kanade and P R Bora was hearing a petition filed by S C Cambata Trust challenging a show cause notice issued to them by the collector.
The notice was issued for alleged violation of certain conditions of a 1939 agreement between the trust and the state government for leasing a land for 99 years in south Mumbai, which houses the famous Eros theatre building.
The trust, while challenging the notice, approached the high court claiming that the collector does not have jurisdiction to hear the matter as the government is the owner of the land. It also said that due procedure of law was not followed in the matter.
Senior counsel Milind Sathe, appearing for the trust, also pointed out that by looking at the tenor of the notice it appears that the collector has pre-decided the matter and would pass an arbitrary order.
"We express extreme displeasure in the manner in which the collector of Mumbai is conducting herself in such matters. We direct the chief minister of Maharashtra to look into the matter personally and find out the state of affairs in the collector's office," Justice Kanade said.
"Just because you (government) are the owner of the land
does not mean the collector can issue show cause notices and conduct hearings. Is this the way government acts in a high- handed manner? Is the collector not bound by statutory provisions of law? Such actions are obviously mala fide," the court said.
Earlier in January, the iconic building, located opposite the Churchgate railway station, was sealed following an attachment order passed by Mumbai City Collector Ashwini Joshi.
The action came against Cambata Aviation (owner of the building) for non-payment of pending dues of over Rs four crore of their employees since February 2015.
Around 1,200 employees of Cambata Aviation had moved the city labour court against the management.
The labour court had recently directed the city collector to pass an order to seal and lock the the premises.
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