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2012 Supreme(Del) 1259

High Court of Delhi
VALMIKI J. MEHTA
M/S. Marudhar Services Ltd. & Another
Versus
Ved Parkash & Another
RFA. NO. 374 OF 2004
Decided on : 04-05-2012

Advocates appeared:
For the Appellants:Gurbaksh Singh, Advocate.
For the Respondents:Ms. Mala Goel, Advocate.

The judgment established the legal principle that the rent payable for the suit premises was Rs.10,000/- per month and not Rs.6,000/- per month, and that mesne profits could be granted at a rate of Rs.15,000/- per month from 1.4.1998, with a cumulative increase of 10% per annum.

Headnote:

CPC - Arrears of Rent and Mesne Profits - Section 96 of the Code of Civil Procedure, 1908 - 26.8.1993 - 2.3.1998 - 16.4.2004

Fact of the Case:

The appellant No.1/defendant No.1 became a tenant in the first floor portion of the property being C-52, Soami Nagar, New Delhi – 110 017 under the respondents/plaintiffs in the year 1993. The premises were let out for the residence of appellant No.2/defendant No.2. The tenancy was terminated by the plaintiffs/respondents/landlords by a legal notice dated 2.3.1998.

Finding of the Court:

The trial Court has decided the issue of whether arrears of rent were payable from 1.9.1995 to 31.3.1998, and if yes at what rate. The impugned judgment also grants a decree for mesne profits @ Rs.12,000/- per month from 1.4.1998 till March, 2001.

Issues: (i) Whether the respondents/plaintiffs/landlords ought to be allowed arrears of rent at Rs.10,000/- per month and not Rs.6,000/-per month, as granted by the trial Court from 1.9.1995 to 31.3.1998 i.e. not at Rs.6,000/- per month as granted by the trial Court? (ii) Whether the payment of Rs.1,20,000/-, made by the appellants/defendants by means of two pay orders dated 2.9.1997 and 18.11.1997, should be taken for payment of dues from September, 1997 only as per the case of the appellants/defendants or from 1.9.1995 as per the case of the respondents/plaintiffs? (iii) Whether the respondents/plaintiffs are entitled to enhancements in mesne profits from Rs.12,000/- per month as granted by the trial Court for the period from 1.4.1998 till January/March, 2001?

Ratio Decidendi: The rent payable for the suit premises was held to be Rs.10,000/- per month and not Rs.6,000/- per month. The appellants/defendants failed to prove that they had paid any amount towards rent from 1.9.1995 to 31.3.1998. The rate of mesne profits was determined to be Rs.15,000/- per month from 1.4.1998, with a cumulative increase of 10% per annum.

Final Decision: The respondents/plaintiffs/landlords were entitled to arrears of rent at Rs.10,000/- per month from 1.9.1995 till 31.3.1998, along with interest at 12% per annum. Mesne profits were granted at Rs.15,000/- per month from 1.4.1998, with a cumulative increase of 10% per annum. The appellants/plaintiffs were entitled to adjustment for the deposit of Rs.30,000/-lying with the respondents/plaintiffs/landlords. The appeal and the cross-objections were disposed of by allowing costs of Rs.50,000 to the respondents/landlords.

Judgment :

VALMIKI J. MEHTA, J.

1. The respondent No.1/plaintiff No.1 has died during the pendency of the appeal and an oral request of learned counsel for the parties is accepted, whereby respondent No.2/plaintiff No.2 being the wife of respondent No.1/plaintiff No.1 is substituted as a legal heir of respondent No.1/plaintiff No.1. The name of respondent No.1 is, accordingly, deleted from the array of parties. For the sake of convenience the original plaintiffs are referred to as the respondents/plaintiffs.

2. The challenge by means of this Regular First Appeal filed under Section 96 of the Code of Civil Procedure, 1908 (CPC) is to the impugned judgment of the trial Court dated 16.4.2004 decreeing the suit of the respondents/plaintiffs for arrears of rent and mesne profits. The respondents/plaintiffs have also filed cross-objections in this appeal, inasmuch as, the respondents/plaintiffs claim that the arrears of rent ought to have been granted at Rs.10,000/- per month and not Rs.6,000/- per month, and there should be enhancement in the rate of the mesne profits granted.

3. The facts of the case are that the appellant No.1/defendant No.1 became a tenant in the first floor portion of the property being C-52, Soami Nagar, New Delhi – 110 017 under the respondents/plaintiffs in the year 1993. The premises were let out for the residence of appellant No.2/defendant No.2. There were two documents creating the relationship of landlord and tenant between the parties. One was an unregistered lease deed dated 26.8.1993 for a period of two years at rent of Rs.6,000/- per month, and another was an agreement of the same date for hire charges of the fittings and fixtures @ Rs.4,000/- per month. Effectively, therefore, a sum of Rs.10,000/- was payable as rent of the premises. I may note that now as per innumerable judgments of this Court, hire charges are taken as part and parcel of the rent, inasmuch as, they are charges for use of the rented premises.

4. The tenancy being a monthly tenancy, was terminated by the plaintiffs/respondents/landlords by a legal notice dated 2.3.1998, and receipt of which is not disputed by the appellants/defendants. The said notice was in fact replied to by the appellants/defendants vide reply dated 23.4.1998. In the notice, the respondents/plaintiffs claimed arrears of rent @Rs.10,000/-from 1.9.1995 to 31.3.1998 and mesne profits from 1.4.1998 till the date when physical possession of the tenanted premises is handed over. During the pendency of the suit, which was filed for possession, arrears of rent and mesne profits, the respondents/landlords filed an application under Order 12 Rule 6 CPC with respect to the relief of possession, and which application on being allowed, and the order being upheld by this Court, the appellants/defendants handed over possession in January, 2001. The respondents/plaintiffs, however, claimed that the possession was handed over in March, 2001.

5. By the impugned judgment the trial Court has decided the issue of whether arrears of rent were payable from 1.9.1995 to 31.3.1998, and if yes at what rate. The impugned judgment also grants a decree for mesne profits @ Rs.12,000/- per month from 1.4.1998 till March, 2001, which is the month which the trial Court found when the appellants/defendants handed over physical possession of the suit premises. The counsel for the respondents/plaintiffs state that possession was taken by the respondents/plaintiffs in execution proceedings with the assistance of the Court bailiff.

6. The issues before this Court, and which I am called upon to decide in accordance with the arguments which have been so urged on behalf of the respective parties are as under:-

(i) Whether the respondents/plaintiffs/landlords ought to be allowed arrears of rent at Rs.10,000/- per month and not Rs.6,000/-per month, as granted by the trial Court from 1.9.1995 to 31.3.1998 i.e. not at Rs.6,000/- per month as granted by the trial Court?

(ii) Whether the payment of Rs.1,20
























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