SUPREME COURT OF INDIA
Dipankar Datta, Sandeep Mehta, JJ.
Kawaljit Singh - Appellant
Versus
Davinder Singh Dhaliwal & Ors. - Respondents
C.A. Nos. ..........of 2024 @ SLP (C) Nos. 28295-28296/2019
With
Davinder Singh Dhaliwal & Ors. - Appellants
Versus
Kawaljit Singh - Respondent
C.A. No. .........of 2024 @ SLP(C) No. 4812/2020
Decided On : 02-12-2024
ORDER :
1. Leave granted.
2. The tenant (Kawaljit Singh) suffered an order of eviction1[dated 28th July, 2015], passed by the Rent Controller. The order of eviction was carried in appeal by him before the Appellate Authority. The landlord (Davinder Singh Dhaliwal and others) applied in August, 2015 for calculation of mesne profits and prayed that the tenant be directed to pay mesne profits from the date of the order of eviction. The application was allowed2[by an order dated 30th October, 2017]. The tenant was directed to pay mesne profits @ Rs.90,000/-per month from the date of the order of eviction till actual eviction. The order of the Appellate Authority was challenged before the High Court of Punjab and Haryana at Chandigarh in two revision petitions, both by the landlord as well as by the tenant.
3. The High Court by the common impugned judgment and order dated 6th September, 2019, disposed of both the revision petitions. Though the High Court arrived at the conclusion that mesne profits on the basis of the deeds brought on record by the landlord and the tenant work out to Rs. 95,231.25 paise, yet, keeping in mind marginal variations, interference with the rate of mesne profits fixed by the Appellate Authority was declined. Thereafter, the High Court directed the tenant to deposit the amount towards mesne profits fixed by the Appellate Authority “within two months from the date of receipt of a certified copy of … order by calculating the same from three years preceding to the date of application for mesne profits”. It also directed that the “rent” shall be paid directly to the landlord.
4. Aggrieved by the impugned order, both the tenant (represented by Mr. P.S. Patwalia, learned senior counsel) and the landlord (represented by Mr. Abhimanyu Tewari, learned counsel) are in appeal.
5. We have heard Mr. P.S. Patwalia and Mr. Tewari at some length and are of the considered opinion that the appeals ought to be and are disposed of on the following terms:
(ii) The direction of the High Court that the tenant has to pay mesne profits for the period of three years preceding the date of the application for mesne profits (the application for mesne profits having been filed in August, 2015), stands substituted by the direction that the landlord shall be entitled to mesne profits @ Rs.80,000/-(Rupees eighty thousand) to be paid by the tenant from 1st August, 2015; and
(iii) the word “rent” in the last sentence of the impugned judgment and order shall be read to mean mesne profits.
6. The tenant has reportedly vacated the subject premises. In that view of the matter, it is also directed that the arrears in terms of this order have to be paid by the tenant to the landlord from 1st August, 2015 till the date he vacated the subject premises, within six months from date; in default thereof, the rate of mesne profits fixed by the Appellate Authority, which was affirmed by the High Court, shall be maintained and the tenant shall make himself liable to arrears of mesne profits @ Rs.90,000/-(Rupees ninety thousand). If there be further default, the landlord shall be at liberty to work out his remedies in accordance with law.
7. Except for the aforesaid modification, the other terms and conditions in the impugned judgment and order are not disturbed.
8. Pending applications, if any, also stand disposed of.
The court has the authority to modify mesne profits and clarify payment terms in eviction cases.
The court reaffirmed that tenants must pay mesne profits equivalent to market rent post-eviction, regardless of ongoing appeals.
Court may reassess mesne profits based on market evidence and principles to avoid punitive outcomes.
The issue of title cannot be adjudicated upon in the eviction proceedings and does not bar the award of mesne profits once an eviction order has been passed.
Assessment of mesne profits must rely on cogent evidence and judicial notice of market conditions, balancing landlord and tenant interests.
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