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2024 Supreme(Bom) 102

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SHARMILA U. DESHMUKH, J.
Bata India Limited. – Appellant
Versus
Bindiya Co-operative Housing Society Limited – Respondent
Civil Revision Application No. 549 of 2022
Decided on : 19-01-2024

Advocates:
Advocate Appeared:
For the Appellant : Mr. Shyam Dewani, Mr. Chirag Chanani, Mr. M. Tahai i/b Dewani Associate
For the Respondent: Mr. S. C. Naidu, Mr. Sudesh Kumar Naidu, Mr. Pradeep Kumar, Mr. Abhishek Ingale i/b Arsh Misra

Headnote:

Mesne Profits - Tenancy Dispute - Order XX Rule 12 of CPC - Section 115 of CPC - [SUMMARY OF ACTS AND SECTIONS REFERENCED: Order XX Rule 12 of CPC, Section 115 of CPC]

Fact of the Case:

The case involves a dispute between a company tenant and a cooperative housing society regarding the payment of mesne profits for a shop premises. The tenant's eviction was sought, and an inquiry for mesne profits was decreed by the Small Causes Court. Both parties filed appeals against the judgment, leading to a final decision in 2022, directing the tenant to pay mesne profits at an increased rate.

Finding of the Court:

The court analyzed the limitation for filing the mesne profits application, the period for which mesne profits can be granted, and the computation of mesne profits. It found that the application was not barred by limitation and that mesne profits could be granted for the entire period from the date of institution of the suit until delivery of possession. The court also discussed the valuation report and the determination of the monthly compensation for mesne profits.

Issues: The key issues included the limitation for filing the mesne profits application, the period for which mesne profits can be granted, the computation of mesne profits, and the enhancement of mesne profits.

Ratio Decidendi: The court held that the application for mesne profits was not barred by limitation and that mesne profits could be granted for the entire period from the date of institution of the suit until delivery of possession. It also determined the monthly compensation for mesne profits based on the valuation report and the carpet area of the premises.

Final Decision: The court partly allowed the revision, modifying the area for computation of mesne profits and directing the tenant to pay mesne profits at a specified rate within three months. It also allowed the respondent to withdraw the deposited amount if the arrears were not paid within the specified period.

JUDGMENT :

1. Rule. Rule made returnable forthwith and heard finally with the consent of the parties.

2. The revisional jurisdiction of this Court has been invoked challenging the common judgment and order dated 5th September 2022 passed by the Appellate Court in appeals filed by both the parties against the Judgment dated 22nd August 2015 passed by the Small Causes Court in Mesne Profits Application No.6 of 2010. Vide the impugned judgment, the Applicant is directed to pay mesne profits at the rate of Rs.1,24,099/- per month for the period from 22nd January 2002 to 31st March 2012 along with interest at the rate of 6% p.a.

3. The facts of the case are that the Applicant is a company registered under the Companies Act and was the tenant of Respondent since the year 1958 at monthly rent of Rs.200/- in respect of Shop no. 8 situated on the ground floor of Respondent-Cooperative Housing Society. At the time of filing of eviction suit, the monthly rent of the suit premises was Rs 313/-. Vide legal notice dated 11th September 2001, the tenancy agreement of Applicant was terminated. T. E. Suit No.21/23 of 2002 was instituted by the Respondent before the Small Causes Court seeking eviction of the Applicant and an inquiry for mesne profits under Order XX Rule 12 of CPC which came to be decreed vide judgment and order dated 2nd August 2005. As against the said judgment and order, Appeal No. 229 of 2005 was filed by the Applicant which came to be dismissed by the Appellate Court by judgment and order dated 28th July 2010.

4. Civil Revision Application No. 912 of 2010 was preferred before this Court, which was dismissed on 27th April 2011. SLP Civil 14753 of 2011 filed before the Apex Court came to be dismissed by order dated 16th September 2011 and the applicant was granted time to hand over possession of the suit premises on or before 31st March 2012.

5. Mesne Profits Application No. 6 of 2010 was filed in T. E. Suit no. 21/23 of 2002 seeking an inquiry into the mesne profits under Order XX Rule 12 of CPC. The Respondent appointed Mr. Roshan H Namavati, an Architect and registered estate valuer who submitted valuation report dated 18th May, 2010 on the basis of which the Respondent claimed Rs.2,08,49,018/-as arrears of mesne profits upto 31st July, 2010 and Rs.2,82,318/- per month as mesne profits from 1st August, 2010 till handing over possession alongwith interest @ 6% p.a. The application was resisted by the Applicant contending that the suit building is more than 70 years old and is dilapidated. It was contended that considering the present day position, locality and amenities, rate claimed by the Applicant was highly disproportionate and the instances of the valuer are not comparable.

6. The Small Causes Court by judgment dated 22nd August 2015 allowed the mesne profits application and directed the applicant to pay Rs. 1,07,040/- per month for the period from 22nd January 2002 to 31st March 2012 alongwith interest @ 6% p.a. Both parties challenged the judgment of the Trial Court and vide common judgment dated 5th September 2022 the appeal filed by the applicant was dismissed and the appeal filed by the respondent was partly allowed increasing the amount of mesne profits to Rs. 1,24,099/- per month from 22nd January, 2002 to 31st March, 2012.

7. Heard Mr. Shyam Dewani, learned counsel appearing for the Applicant and Mr. S. C. Naidu, learned counsel appearing for the Respondent.

8. Mr. Dewani, learned counsel for the Applicant submits that the mesne profits application being filed after period of five years from the date of decree of eviction was barred by limitation as also the period for which mesne profits can be granted is three years preceding the application for mesne profits whereas in the instant case the mesne profits is granted for period of eight years preceding the application. Pointing out to the averments in mesne profits application, he would contend that it is the case of Respondent that there is no specific order staying th

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