The main legal point established in the judgment is the determination of mesne profits and damages, based on the existing rent in the area and an annual increase of 15% for the calculation of damages.

JUDGMENT :

JAYANT NATH, J.

1. This suit has been filed for recovery of possession of immovable property, damages, by way of compensation and for mesne profits/compensation pendente lite and future.

2. The case of the plaintiffs is that they are the co-owners of the property No.7, Community Centre, Friends Colony, measuring 222.96 sq.mts. The defendant is a body corporate engaged in the business of banking. It is pleaded that w.e.f. 1.4.2002 defendant bank occupied portion of the plaintiffs above described property consisting of an area of 5742 sq. ft. scattered on various floors of the above property being basement area, ground floor, mezzanine at a monthly rent of Rs.3,50,000/- per month. The terms and conditions of the lease agreed upon by the parties were stated in a duly registered Lease Deed dated 2.9.2002. As per terms of the Lease Deed defendant came in occupation of the above described property for a period of five years to be computed w.e.f. 1.4.2002 to 31.3.2007. On 2.2.2007 the plaintiff by notice invited attention of the defendant to the terms of the Lease Deed expiring on 31.3.2007 by efflux of time, by calling upon the bank to deliver and hand over vacant possession of the premises failing which it was stated that the bank will have to pay Rs.50,000/- per day as damages. It is stated that despite expiry of the lease on 31.3.2007 the bank continued to be in occupation of the property on the representation that the bank is in the process of identifying new premises. In the first week of June, 2007 some proposals were discussed whereby it was suggested that the lease period be extended to 31.3.2012 and the revised monthly rent for the ground floor and the basement floor would be Rs.6,50,000/- w.e.f. 1.4.2007. The mezzanine floor was to be dropped. Appropriate letter dated 18.6.2007 was submitted to the defendant. Hence, the bank continued in possession of the premises. By demand notice dated 10.6.2008 the plaintiff stated to the bank its liability to pay occupation charges for use of the premises at current prevalent market rate w.e.f. 31.3.2007 and requiring the bank to vacate the premises by 30.6.2008. As the defendant failed to vacate the present suit has been filed seeking eviction of the bank from the premises and recovery of damages and possession w.e.f. 1.4.2007 to 30.6.2008 @ Rs.3,00,000/- per month (in addition to the rent already paid) and mesne profit commencing 1.7.2008 onwards.

3. Defendants have filed their written statement. The defendants in the written statement have stated that the plaintiff has concealed material facts inasmuch as the bank had been in possession of the property prior to execution of the Lease Deed dated 2.9.2002. In fact the bank is in occupation of the suit property since 1.4.1997. A lease deed dated 22.9.1998 was executed giving the option to the bank to renew the lease for a further period of five years. The lease was renewed on 2.9.2002 recognising the right of renewal. It was further pleaded that despite efforts of the defendant bank the bank could not locate an alternative accommodation. However, the bank has been making regular payment of rental amount which the plaintiffs have duly accepted and as such the lease got renewed in favour of the bank automatically on a monthly basis.

4. During pendency of the present proceedings the bank handed over to the plaintiffs vacant premises on 20.7.2010. Hence, the only issue that survives is unpaid mense profits/damages.

5. On 23.7.2010 this court framed the following issues:-

(i) “Whether the plaintiff is entitled to damages/mesne profits? If so, the period and the rate at which it is payable? OPP

(ii) Whether the plaintiff is entitled to any interest? If so, the rate and the period for which it is payable? OPP

(iii) Reliefs.”

6. Parties have led their respective evidence. Plaintiff No.1 has led his own evidence as PW-1 and of Mr.Vimal Kumar PW-2