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SANDEEP V. MARNE
Forbes Gokak Ltd. – Appellant
Versus
Bharat Petroleum Corporation Limited – Respondent
JUDGMENT :
Sandeep V. Marne, J.
1. These are cross Civil Revision Applications filed by the tenant and landlord aggrieved by the decisions of Small Causes Court and its Appellate Bench with regard to fixation of mesne profits and rate of interest payable thereon. The Tenant-Bharat Petroleum Corporation Limited (BPCL) has filed Civil Revision Application (Stamp) No.1604 of 2024 challenging the judgment and order dated 15 July 2023 passed by the Appellate Bench of Small Causes Court rejecting its Miscellaneous Appeal No.130 of 2022 and confirming the order dated 21 January 2022 passed by the learned Single Judge of Small Causes Court in Mesne Profits Application No.747 of 2013. The landlord had filed Cross-Objections in BPCL’s Miscellaneous Appeal No.130 of 2022 aggrieved by the quantum of mesne profits fixed by the learned Single Judge of Small Causes Court as well as the rate of interest payable thereon. The Cross-Objection is also rejected by the Appellate Bench by impugned judgment and order dated 15 July 2023, which is subject matter of challenge in Civil Revision Application No.424 of 2024 filed by the landlord. In short, while the Tenant-BPCL expects reduction of quantum of mesn
The court clarified that interest on mesne profits should be limited to 6% as the transaction was not commercial in nature under Section 34 of the Code of Civil Procedure.
Mesne profits are payable from the date of lease termination, and the Appellate Court can extend payment periods and correct errors in lower court decisions.
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.
Mesne profits arise independently of breach of contract, and landlords are entitled to claim beyond stipulated amounts in lease agreements where wrongful possession is established.
Mesne profits must be quantified based on credible evidence reflecting prevailing market rates, with the burden of proof resting on the claimant to substantiate the claims.
The court determined that mesne profits should reflect the market rate while balancing the landlord's interests against the tenant's ability to pay, setting the amount at Rs. 13,000/- per month.
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