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2026 Supreme(Bom) 503

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
RAJESH S. PATIL, J.
In the Matter of: M/s. Bharat Petroleum Corporation Ltd. – Appellant
Versus
Balasaheb Hiralal Zad and Another – Respondents
Interim Application No. 13541 of 2023, Civil Revision Application No. 432 of 2008
Decided On : 04-02-2026

Advocates Appeared:
For the Appellant : S.R. Page
For the Respondent: Amey Borwankar

Appellate stay of eviction decree allows market rent deposit as reasonable term promptly post-admission; belated application after 13 years when ripe for hearing not maintainable, modifying admission order.

Headnote:(A) Civil Procedure - Order XLI Rule 5 - Stay of eviction decree - Appellate court jurisdiction to impose reasonable terms compensating decree holder for execution delay by directing deposit of mesne profits at market rate post-decree, as tenancy terminates with decree and tenant liable for compensation at letting out rate. (Paras 2.1, 2.2, 19)

(B) Such interim application maintainable if filed promptly post-admission; not entertainable after long delay (11-13 years) when proceedings ripe for final hearing, no circumstances change shown, as it modifies admission order after hearing both sides. Liberty at admission implies reasonable time. (Paras 3,4,5,6,7)

Facts of the case:
Civil revision against eviction decree admitted with stay and liberty to landlord for terms application. Interim application filed after 13 years seeking monthly market rent deposit from pre-decree date.

Findings of Court:
Interim application dismissed; revision listed for final hearing.

Issues: Whether landlord's delayed application for market rent deposit as stay condition maintainable post long pendency.

Ratio Decidendi: Prompt post-admission applications per stay jurisdiction principles decidable on merits; belated ones when ready for hearing not, to avoid modifying settled admission without changed circumstances.

Result: Interim application dismissed.

Table of Content
1. landlord files ia for market rent deposit post-cra admission. (Para 1 , 2)
2. stay of eviction requires market rate mesne profits per atma ram. (Para 3)
3. applications for compensation untimely after years, when ripe for hearing. (Para 4 , 5)
4. ia dismissed due to delay; cra listed for final hearing. (Para 6 , 7)

JUDGMENT :

RAJESH S. PATIL, J.

1. Heard learned advocates for both the sides.

2. This interim application has been filed by the applicant/landlord seeking deposit of market rate at Rs.5,55,000/- per month from October 2007. The civil revision application filed by tenant has been admitted on 23 June, 2010 filed by the BPCL.

3. I have taken a view in the judgment passed in Interim Application No. 15729 of 2023 in Civil Revision Application No. 646 of 2012 in case of Brijbhushan Chandrabali Shukla vs. Mahendra Yadav S/o Lavjari S. Yadav dated 12 January, 2024. Paragraph nos. 2 to 7 of the said judgment reads as under:-

Legal Frame Work :

2. It is necessary first to examine the ratio laid down by the Supreme Court in the judgment of Atma Ram Properties (Supra).

2.1. In the said judgment Supreme Court held that while passing an order of stay to eviction decree, the Appellate Court does have jurisdiction to put the applicant on such reasonable terms as would be reasonable to compensate the decree holder for loss occasioned by delay in execution of decree by grant of stay order. In the said proceedings, eviction was sought on the ground of subletting. The decree of eviction was passed. In an Appeal preferred under Section 38 of the Delhi Rent Control Act, 1958, the Rent Control Tribunal directed the eviction to remain stayed but subject to the condition that the respondent shall deposit in the Court Rs.15,000/- p.m., in addition to the contractual rent which may be directly paid to the Appellant. Paragraph No.19 of the said judgment reads as under :-

“19. To sum up, our conclusions are:-

(1) while passing an order of stay under Rule 5 of Order 41 of the Code of Civil Procedure, 1908, the appellate Court does have jurisdiction to put the applicant on such reasonable terms as would in its opinion reasonably compensate the decree-holder for loss occasioned by delay in execution of decree by the grant of stay order, in the event of the appeal being dismissed and in so far as those proceedings are concerned. Such terms, needless to say, shall be reasonable;

(2) in case of premises governed by the provisions of the Delhi Rent Control Act, 1958, in view of the definition of tenant contained in clause (l) of Section 2 of the Act, the tenancy does not stand terminated merely by its termination under the general law; it terminates with the passing of the decree for eviction. With effect from that date, the tenant is liable to pay mesne profits or compensation for use and occupation of the premises at the same rate at which the landlord would have been able to let out the premises and earn rent if the tenant would have vacated the premises. The landlord is not bound by the contractual rate of rent effective for the period preceding the date of the decree;

(3) the doctrine of merger does not have the effect of postponing the date of termination of tenancy merely because the decree of eviction stands merged in the decree passed by the superior forum at a latter date.” (Emphasis Supplied)

2.2. Hence, in the judgment of Atma Ram Properties (Supra) Supreme Court, held that if a tenant suffers a decree of eviction, Appellate Court while granting stay to eviction decree, can put the tenant on reasonable terms, to compensate the decree holder for loss suffered by delay in execution of decree due to stay granted. The Court further held that after passing of eviction decree, in Appeal if stay to eviction decree is sought, the tenant is liable to pay mesne profit or compensation for occupation of premises from the date of decree, at the same rate at which Landlord would have been able to let out the premises and earn rent if tenant had vac

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