MUMBAI: The Bombay High Court has taken significant action in a lease dispute regarding valuable commercial real estate in Chembur. In a crucial interim ruling, the court has placed the contested property under judicial protection until a final decision is reached, and has appointed the Court Receiver to assume possession and provide a status report. The court raised questions about the termination of Decathlon Sports India Pvt Ltd’s lease, which appears to have been canceled in favor of a more profitable option.
The dispute centers around the commercial segment of Godrej RKS, where Decathlon claims to have secured 761 square meters across the lower ground and ground floors, along with 24 parking spaces, under a 10-year lease for approximately Rs 21 lakh per month in 2025.
Decathlon asserts that it made significant business commitments based on this deal, including plans for a flagship store in Chembur and the closure of its Bandra and Worli locations. Planning and regulatory approvals were already in progress, the company reported to the court.
Court questions lease termination
The conflict intensified in February 2026 when Godrej terminated the Lease Agreement, citing unmet conditions, including approval-related issues and unresolved signage permissions.
However, after reviewing various documents—including emails, approvals, and meeting minutes—the court observed that several permissions appeared to have been granted, contradicting Godrej’s claims. A critical piece of evidence came from a meeting held on February 19, 2026, just one day before the termination, during which Godrej purportedly indicated its decision to lease the entire commercial space to a single party instead of managing multiple tenants. The judge suggested that the motivation behind the termination may not have been due to missing approvals but rather a strategic decision to replace Decathlon with a more lucrative option. This theory was further supported by subsequent actions.
Shortly after terminating Decathlon’s lease, Godrej issued a Letter of Intent to Titan Company Ltd and finalized a registered lease deed. This new arrangement encompassed nearly double the space, a 21-year term, and a significantly higher rental agreement.
The court posited that the timing suggested the initial arrangement was terminated to pursue a more profitable deal, labeling Godrej’s stated reasons for termination as a possible “smokescreen.”
Receiver appointed
The court emphasized that contracts cannot simply be disregarded for the sake of a better financial offer. Titan argued it was an innocent party unaware of the previous agreement, though the court expressed doubts regarding this claim.
As interim relief, the High Court has prohibited Godrej and Titan from proceeding with the new lease regarding the disputed property and ordered all parties to maintain the current status. No alterations or construction may take place for the time being. In a pivotal move, the Court Receiver has been designated to take possession of the disputed area and provide a report on its condition. Godrej’s request to stay this action was declined. The court noted that other commercial areas outside of the disputed section could be addressed legally.
The ruling also referenced Godrej’s status as a reputable corporate entity, highlighting that such behavior, if tolerated, could undermine principles of commercial fairness. As a result, one of Mumbai’s most scrutinized commercial property disputes has now escalated into a courtroom battle, with the prized Chembur location under judicial oversight pending a final ruling.
Lawyers representing Decathlon chose not to comment. Efforts to reach Godrej’s legal team were unsuccessful.
