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SANJAY KAROL, MANOJ MISRA
Mohit Suresh Harchandrai – Appellant
Versus
Hindustan Organic Chemicals Limited – Respondent
| Table of Content |
|---|
| 1. details regarding the landlord-tenant relation and the legal actions taken. (Para 3 , 4 , 5) |
| 2. determining mesne profits and related legal procedures. (Para 6 , 7) |
| 3. court's findings related to the rates of mesne profits. (Para 8 , 9 , 10 , 11) |
| 4. concluding observations on the case and judicial delays. (Para 12 , 13) |
| 5. final orders and directions regarding the disputes. (Para 14 , 15) |
ORDER :
SANJAY KAROL, J.
1. Delay Condoned.
2. Leave Granted.
3. These are cross-appeals filed by both parties against the judgment and order passed by the High Court of Judicature at Bombay in W.P. No. 16741 of 2024, dated 4th December 2024. The crux of the dispute is the ‘per square foot rate’ at which the mesne profit is to be calculated in connection with Hindustan Organic Chemicals Ltd. (HOCL) occupation, as ‘tenant’ of ‘Harchandrai House’ situated at 81/A, Maharshi Karve Road, Mumbai1. The Appellants in C.A. Diary No. 19731 [hereafter referred to as the demised premises] of 2025 are the ‘Landlords’. C.A. SLP (C) Nos. 5754-5755 shall stand disposed of in accordance herewith.
4. The tenant originally entered into the demised premises and 2nd floor thereof, totalling 7825 Sq. ft. built
Tenants are required to pay mesne profits equivalent to standard rent from the point they lose entitlement to occupation, regardless of their status as a Public Sector Undertaking.
The court has the authority to modify mesne profits and clarify payment terms in eviction cases.
Mesne Profits – A tenant who once entered property in question lawfully, continues in possession after his right to do so stands extinguished, is liable to compensate landlord for such time period af....
The court reaffirmed that tenants must pay mesne profits equivalent to market rent post-eviction, regardless of ongoing appeals.
Mesne profits can only be claimed from the date of the eviction decree, not from the date of filing the suit, as possession remains lawful until the decree is passed.
The court established that tenants must compensate landlords with mesne profits during the appeal process, reflecting current market rates, not just contractual rent.
Court may reassess mesne profits based on market evidence and principles to avoid punitive outcomes.
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