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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
M. M. SATHAYE
State Trading Corporation of India Ltd. – Appellant
Versus
Ravinder Singh Indersingh Sehgal – Respondent
| Table of Content |
|---|
| 1. identical legal questions regarding lease agreements. (Para 1 , 2 , 3 , 4) |
| 2. interpretation of clause 15 of the lease-deed. (Para 5 , 6) |
| 3. distinction between compensation and mesne profits. (Para 10 , 11 , 12 , 18 , 21) |
| 4. binding nature of contracts and their interpretation. (Para 13 , 14 , 15 , 19 , 32) |
| 5. essence of wrongful possession in determining mesne profits. (Para 25 , 26) |
| 6. final ruling on mesne profits and dismissal of applications. (Para 33 , 34 , 35 , 36) |
JUDGMENT :
M. M. SATHAYE, J.
1. These Civil Revision Applications raise identical questions of law in respect of same lessee – State Trading Corporation of India Ltd. (‘STC’ for short) involving different lessors/landlords and therefore are being disposed of together.
2. The Civil Revision Application No. 308 of 2011 is filed by STC challenging the impugned judgment and order dated 11/01/2011 passed in the Appeal No. 177 of 2010 and Cross objection No. 28 of 2010 by the Appellate Bench of Small Causes Court at Mumbai, thereby dismissing both the appeal and the cross-objections, thereby confirming the judgment and order dated 08/02/2010 passed in Mesne Profit Application No. 1 of 2006 filed by the Ravin
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 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 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.
The court established that after the termination of tenancy, the tenant is treated as a trespasser, and mesne profit is to be assessed based on the market rate rather than any statutory rent control ....
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.
The central legal point established in the judgment is the determination of fair rental value based on market rates and the rejection of unreasonable valuation reports.
The main legal point established in the judgment is that the procedure under Order 20 Rule 12 CPC for the passing of a decree for possession and mesne profits should be followed only when a suit is f....
The court upheld the eviction decree, confirming that the lease had expired and was not validly renewed, thus justifying the termination notice and the determination of mesne profit.
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