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2022 Supreme(SC) 552

SUPREME COURT OF INDIA
Indira Banerjee, J.K. Maheshwari, JJ.
M/s. Martin & Harris Private Limited & Anr. – Appellants
Vs.
Rajendra Mehta & Ors. – Respondents
Civil Appeal Nos. 4646-47 of 2022 [Arising Out of SLP(C) Nos.20243-44 of 2019]
Decided on : 06-07-2022

Advocates appeared:
For the Appellant :Ms. Arti Singh, Advocate
For the Respondent:Mr. Upendra Pratap Singh, Advocate, Ms. Kheyali Singh, Advocate, Mr. D. K. Devesh, Advocate, Mr. Harsh Singh Rawat, Advocate, Ms. Sneha U. Kanzarkar, Advocate

IMPORTANT POINTS
(1) Once a decree for possession has been passed and execution is delayed depriving decree holder to reap fruits, it is necessary for Appellate Court to pass appropriate orders fixing reasonable mesne profits which may be equivalent to market rent required to be paid by a person who is holding over property.
(2) After passing decree of eviction tenancy terminates and from said date landlord is entitled for mesne profits or compensation depriving him from use of premises.

Headnote:

Civil Procedure Code, 1908 – Order XX Rule 12 – Suit for possession and mesne profit – Eviction decree – Quantum of mesne profits – Once a decree for possession has been passed and execution is delayed depriving decree holder to reap fruits, it is necessary for Appellate Court to pass appropriate orders fixing reasonable mesne profits which may be equivalent to market rent required to be paid by a person who is holding over property – On passing decree for eviction by a competent Court, tenant is liable to pay mesne profit or compensation for use and occupation of premises at same rate at which landlord would have able to let out premises in present and earn profit if tenant would have vacated premises – After passing decree of eviction tenancy terminates and from said date landlord is entitled for mesne profits or compensation depriving him from use of premises – Basis of determination of amount of mesne profit depends on facts and circumstances of each case considering place where property is situated, nature of premises and rate of rent precedent on which premises can be let out are guiding factor in facts of individual case – It is it reasonable to determine Rs.2,50,000/- per month as mesne profit – Order fixing mesne profit and order passed on review petition, filed by Appellants, are just and proper which do not warrant any interference. [Section 20 of Rajasthan Premises (Control of Rent and Eviction) Act, 1950] (Paras 10, 11, 12 and 13)

Facts of the case:

In present appeals order of the High Court directing to pay the mesne profits @ Rs.2,50,000/- per month with other ancillary directions have been questioned. It is contended by Counsel for the Appellants that as per Section 20 of Rajasthan Rent Control Act, 2001, maximum amount of mesne profit may be payable three times of the standard rent in case premises is let out for commercial purposes. It is said the mesne profit, as determined by High Court, is excessive without looking to the year of construction of premises, location of property which is on inside road of colony and also without taking note of the DLC rate, therefore, the order impugned may be set aside and the quantum of mesne profits may be revised to three times of the amount of rent making it Rs.1,35,000/- per month.

Findings of Court:

High Court in the impugned order observed that the tenanted property is located on the main road of New Colony near Panch Batti which is a commercial area in the heart of Jaipur City. The said finding has been arrived considering voluminous documentary record dispelling the plea taken by Appellants. However, the Court in the facts and circumstances found it reasonable to determine Rs.2,50,000/- per month as mesne profit.

Result : Appeals dismissed.

JUDGMENT

J.K. Maheshwari, J.

Leave granted.

2. Plaintiffs/Respondents being the owners of the suit property situated at Plot No.1, Block No.D-1, Nagar Nigam No.2844 known as Khinduka Bhawan, New Colony, Jaipur filed a suit bearing No.4/2016 (9/2002) for eviction, possession, recovery of rent and permanent injunction. The said suit was filed in November 2002 invoking the Provisions of Section 13 of the Rajasthan Premises (Control of Rent and Eviction) Act, 1950 (hereinafter referred as Old Act). The suit was decreed vide judgment dated 03.06.2016 passed by Senior Civil Judge No.7, Jaipur. On filing the appeal bearing No.11/2016 before Additional District Judge No.10, Jaipur, it was dismissed on 10.01.2017 confirming the judgment of the Trial Court. The Second Appeal No.144/2017 was filed challenging both the judgments before the High Court which was admitted vide order dated 14.10.2017 granting stay on ejectment. The order of stay was extended time to time. On filing an application under Order XLI Rule 5 read with Section 151 of the Code of Civil Procedure (in short CPC) by the Plaintiffs/Respondents asking mesne profit due to continuation of stay on eviction decree it was decided vide order dated 18.05.2018. Whereby the appellants were directed to pay the mesne profit @ Rs.2,50,000/- per month from the date of filing of the application i.e. 20.12.2017 till disposal of the appeal. The directions have also been issued to deposit the arrears of mesne profits upto April 2018 by depositing the same in the bank account of the Plaintiffs within six months, with further direction to pay mesne profits from May 2018 consecutively by 15th date of every succeeding month. Failing to deposit the amount of mesne profit in future for four months consecutively, Plaintiffs would have right to get execute the decree of eviction. The Plaintiffs were granted liberty to withdraw the amount subject to furnishing surety and undertaking to re-deposit the mesne profits so withdrawn with 9% interest in case they lose in the second appeal. The said order was challenged by filing the Special Leave Petition No.19863/2018 before this Court, which was dismissed as withdrawn with liberty to the Appellants to file review petition before the High Court. On filing the review petition bearing No.95/2018, it was dismissed vide order dated 01.04.2019 which led to file the present appeals challenging the order dated 18.05.2018 as well as the order passed in review dated 01.04.2019 questioning the grant of mesne profit.

3. The facts unfolded are that the Plaintiffs purchased the property through six different registered sale deeds executed on 23.12.1985. By virtue of those sale deeds, Plaintiffs became the owner of the tenanted premises. Appellants were tenant to the erstwhile owner and after selling the premises they became tenant of Plaintiffs/Respondents by attornment. Earlier a suit under Section 6 of the Old Act was filed by the Plaintiffs/Respondents against the Appellants bearing No.61 of 2002 for determination of the standard rent. During the pendency of the suit an application under Section 7 of the Old Act was filed for fixing the provisional rent which was decided vide order dated 09.01.2004 fixing provisional rent @ Rs.1,00,000/- per month. The said order was challenged, which was confirmed by the High Court vide order dated 18.04.2007. The Appellants had filed a Special Leave Petition bearing No.9775 of 2007 wherein this Court fixed the ad hoc provisional rent @ Rs.60,000/- per month vide order dated 12.11.2007 with direction to the Trial Court to decide the issue of standard rent expeditiously. The Trial Court vide judgment dated 12.08.2009 decreed the said suit and fixed the standard rent @ Rs.45,000/- per month. The appeals filed by both the parties against the said order are pending before the High Court.

4. In the present appeals the order of the High Court directing to pay the mesne profits @ Rs.2,50,000/- per month with other ancillary directions have


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