IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SANDEEP V. MARNE, J.
Union of India, Through Defence Secretary, Ministry of Defence, New Delhi and Ors. - Applicants
Versus
Dr. Rustom Sam Boyce, (Adult) – Respondent
Civil Revision Application No. 269 Of 2024 With Civil Revision Application No. 270 Of 2024
Decided On : 05-08-2024
Mesne Profits - Recovery of Possession - Bombay Rent Act - Sections 12, 2(12) - The court interpreted the provisions of the Bombay Rent Act and the Code of Civil Procedure regarding mesne profits, concluding that liability for mesne profits arises only after a decree for eviction is passed, not from the date of filing the suit.
Fact of the Case:
The Union of India challenged the orders of the Small Causes Court regarding mesne profits for a property occupied under a tenancy agreement. The original suit was filed for recovery of possession due to arrears of rent, and the decree was executed after the tenant's death.
Finding of the Court:
The court found that the defendants' possession was lawful until the decree was passed, thus mesne profits could only be claimed from that date, not from the date of filing the suit.
Issues: Whether mesne profits can be claimed from the date of filing the suit or only from the date of the decree for eviction.
Ratio Decidendi: The court held that mesne profits are payable only from the date of the decree, as the defendants were lawful tenants until that point, aligning with the interpretation of the Bombay Rent Act.
Result: The court set aside the orders directing payment of mesne profits from the date of filing the suit and established liability from the date of the decree.
JUDGMENT :
(Sandeep V. Marne, J.) :
1) Union of India has filed these Civil Revision Applications challenging the Orders dated 3 March 2022 passed by the Appellate Bench of the Small Causes Court, by which Misc. Appeal No.325 of 2015 filed by the Applicant-Union of India has been dismissed, whereas Misc. Appeal No.354 of 2014 filed by the Respondent/Decree- holder is allowed by determining the mesne profits in respect of the suit property at the rate of Rs. 2,50,000/- per month from the date of filing of the suit i.e. 29 July 1979 till 20 November 2022 along with interest @ 6% p.a. By its order dated 9 May 2014, the Small Causes Court had determined the amount of mesne profits @ Rs.2,00,000/- per month with a direction to pay the same from the date of filing of the suit till 20 November 2000 with interest @ 6% p.a. The Appellate Bench has enhanced the quantum of mesne profits to Rs. 2.50,000/- per month.
2) R.A.E.& R. Suit No.1429/4857 of 1979 was filed by Dr. Sam Framrose Boyce against Union of India and its Military Estate Officer for recovery of possession of the suit premises named Boyce Building situated at Gowalia Tank Road, August Kranti Marg, Mumbai-400 026 (suit premises). The suit premises were let out to Defendant-Union of India on monthly tenancy. It appears that during pendency of the suit, Original Plaintiff passed away and his heirs, Dr. (Mrs.) Roshan S. Boyce and Dr. Rustom S. Boyce were brought on record. The suit came to be decreed on the grounds of arrears of standard rent and permitted increases by decree dated 4 September 2000. Defendant-Union of India was directed to handover possession of the suit premises to the Plaintiff. The claim for arrears of rent was however dismissed. The Small Causes Court directed separate enquiry into mesne profits from the date of filing of the suit till handing over of possession of the suit premises to the Plaintiff. The decree was confirmed by the Appellate Bench of the Small Causes Court on 6 June 2002. The decree was thereafter executed on 20 November 2002.
3) The Plaintiff/Decree-holder took out Misc. Notice No. 794 of 2003 for quantification of mesne profits under the provisions of Order 20 Rule 12(1)(c) of the Code of Civil Procedure, 1908 (Code). The Small Causes Court allowed Misc. Notice No. 794 of 2003 and determined the mesne profits in respect of the suit premises at the rate of Rs.2,00,000/- per month and directed the Defendant to pay the same from the date of filing of the suit i.e. 29 July 1979 till the date of execution of the decree i.e. 20 November 2002 alongwith interest @ 6% p.a.
4) Cross-Appeals were filed by the parties challenging the Order of the Small Causes Court dated 9 May 2014 before its Appellate Bench. Plaintiff/Decree-holder filed Misc. Appeal No. 354 of 2014 for enhancement of quantum of mesne profits as well as rate of interest, whereas, Defendant-Union of India filed Misc. Appeal No. 325 of 2015 challenging quantification of mesne profits @ Rs.2,00,000/- per month by the Small Causes Court. By two separate orders passed on 3 March 2022, the Appellate Bench has dismissed Misc. Appeal No. 325 of 2015 filed by the Defendant-Union of India. Misc. Appeal No. 354 of 2015 filed by Plaintiff/Decree-holder is however partly allowed enhancing the quantum of mesne profits to Rs.2,50,000/- with direction to the Defendants to pay the same from the date of filing of the suit i.e. w.e.f. 29 July 1979 till 20 November 2002 alongwith interest @ 6% p.a. Aggrieved by the orders passed by the Appellate Bench of the Small Causes Court on 3 March 2022, the Defendants-Union of India have filed the present Civil Revision Applications.
5) The delay in filing Civil Revision Application No. 269 of 2024 has been condoned by this Court by order dated 3 April 2024.
6) Mr. Redij, the learned counsel would appear on behalf of the Applicants in both the Civil Revision Applications and submit that the Small Causes Court and its Appellate Bench have erred in directing payment of m
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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 are payable from the date of lease termination, and the Appellate Court can extend payment periods and correct errors in lower court decisions.
A claim for future mesne profits is a distinct cause of action and can be validly pursued even if not initially included in a decree for possession, negating previous res judicata arguments.
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 – 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....
(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 mesn....
The court ruled that conditions for stay of execution cannot include mesne profits payments without proper ascertainment, ensuring rights of both parties are preserved during appeals.
Possession protected by law cannot be deemed wrongful, and mesne profits can only be recovered post-legal entitlement.
The valuation of a suit for recovery of possession must comply with statutory provisions, and claims for mesne profits require a declaration of unauthorized occupation.
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