SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2014 Supreme(Del) 97

High Court of Delhi
THE HONOURABLE MR. JUSTICE RAJIV SAHAI ENDLAW
Rajesh Bansal & Another
Versus
A.S. Rastogi
RFA No. 228 of 2013
Decided On : 10-01-2014

Advocate Appeared:
For the Appellants:Laliet Kumar, Deepak Vohara, Advocates.
For the Respondent:D.r. Bhatia, Rishi Manchanda, Ankur Bansal, Advocates with respondent in person.

Headnote:

Mesne Profits - Recovery from Unauthorized Use and Occupation - Lease Deed, Civil Procedure Code - [Indian Contract Act, 1872, Section 74; Fateh Chand Vs. Balkishan Dass AIR 1963 SC 1405; Vishal Engineers & Builders Vs. Indian Oil Corporation Limited; Dayamathi Bai Vs. K.M. Shaffi (2004) 7 SCC 107] - The court awarded mesne profits/damages for use and occupation at a rate lower than the agreed amount in the Lease Deed, considering prevailing market rates and the conduct of the appellants/defendants. The judgment discussed the liability of the appellants/defendants for mesne profits/damages, the admissibility of Lease Deeds as evidence, and the discretion of the court in determining mesne profits.

Fact of the Case:

The respondent/plaintiff filed a suit for recovery of mesne profits/damages for unauthorized use and occupation of a flat by the appellants/defendants after the expiry of the lease. The appellants/defendants contested the suit, but a decree for ejectment was passed, and they vacated the flat. The suit proceeded for trial only for the claim of mesne profits/damages for the period after the expiry of the lease.

Finding of the Court:

The court found that the appellants/defendants were liable for mesne profits/damages for unauthorized use and occupation of the flat after the expiry of the lease. The court considered prevailing market rates and the conduct of the appellants/defendants in overstaying in the premises, and awarded mesne profits/damages at a rate lower than the agreed amount in the Lease Deed.

Issues: The issues included the determination of mesne profits/damages for unauthorized use and occupation, the admissibility of Lease Deeds as evidence, and the conduct of the appellants/defendants in overstaying in the premises.

Ratio Decidendi: The court held that the liability of the appellants/defendants for mesne profits/damages and the period for which the mesne profits/damages are due were not controverted. The court also discussed the admissibility of Lease Deeds as evidence and the discretion of the court in determining mesne profits.

Final Decision: The appeal was dismissed, and the appellants/defendants were ordered to pay costs. The amount deposited by the appellants/defendants in the court was released to the respondent/plaintiff.

Judgment :

Rajiv Sahai Endlaw, J.

1. The appeal impugns the judgment and decree (dated 29th January, 2013 of the Court of the Additional District Judge (ADJ)-06 (Central), Delhi in Suit No.104/09/07 (UID No.02401C0887942007) filed by the respondent/plaintiff) of recovery from the appellants of mesne profits/damages for unauthorized use and occupation of Flat No.210, admeasuring 542.41 sq. ft. Bajaj House, 97, Nehru Place, New Delhi (after the determination of the tenancy of the appellants/defendants) @ Rs.50,000/- per month with effect from 5th September, 2007 till 2nd April, 2012, less the amounts for the said period already paid by the appellants/defendants.

2. Notice of the appeal was issued and vide ex-parte ad-interim order dated 29th May, 2013, subject to the appellants/defendants depositing the decretal amount in this Court, execution was stayed. In compliance therewith, a sum of Rs.18,83,750/- has been deposited in this Court. The appeal was on 7th August, 2013 admitted for hearing and the Trial Court record requisitioned and considering the limited nature of the controversy in the appeal, the appeal posted for actual hearing. The counsels have been heard.

3. The uncontroverted factual position is:

(i) that the aforesaid flat was let out by the respondent/plaintiff to the appellants/defendants vide registered Lease Deed dated 9th September, 2004 for a period of three years commencing from 4th September, 2004 and ending on 4th September, 2007 on monthly rent of Rs.15,750/- per month, besides electricity, water and maintenance charges;

(ii) Clause 1.14 under Part I of the Lease Deed titled “The Lessee Hereby Covenants with the Lessor”, is as under:

“1.14 The LESSEE shall hand over the peaceful, vacant and physical possession of the demised premises to the LESSOR upon expiry of the present lease term (or extension thereof), by efflux of time or termination of the same. Upon failure to hand over the possession the Lease shall pay damages equivalent to triple the monthly rental to the Lessor without prejudice to the rights of the Lessor to file appropriate court cases for recovery of damages/eviction of lessee, entirely upon lessee’s own cost ”

and Clause 3.2, in Part III of the Lease Deed titled “It is Hereby Mutually Agreed”, is as under:

“3.2 That if the Lessee does not vacate the said premises on the expiry of the lease, the lessor shall without prejudice to its rights to get the premises vacated be entitled to the rent increased by @ Rs.5000/- per day of the last rent of the expiry tenure.”

(iii) that though the term of the aforesaid Lease expired on 4th September, 2007 but the appellants/defendants did not vacate the flat; rather, the appellants/defendants were also in arrears of rent;

(iv) that the respondent/plaintiff on 7th September, 2007 i.e. within three days of expiry by efflux of time of the lease, instituted the suit from which this appeal arises, for the reliefs of ejectment of the appellants/defendants from the flat and for recovery of arrears of rent and mesne profits/damages till the date of vacation of the premises and for mandatory injunction directing the appellants/defendants to issue TDS Certificates;

(v) the appellants/defendants contested the suit and in which issues were also framed;

(vi) that on application under Order XII Rule 6 of the Civil Procedure Code (CPC), 1908 of the respondent/plaintiff for a decree for ejectment on admissions, a decree for ejectment of the appellants/defendants from the flat was passed on 8th November, 2011 and in pursuance thereto, the appellants/defendants vacated the flat on 2nd April, 2012;

(vii) that the appellants/defendants in compliance of the interim orders in the suit also paid the arrears of rent admittedly due and also supplied the TDS Certificates to the respondent/plaintiff and the suit thus proceeded for trial only qua the claim for mesne profits/damages for use and occupation as aforesaid for the period from 5th September, 2007 i.e. after the expiry of the term of th































Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top