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

2023 Supreme(Del) 1794

IN THE HIGH COURT OF DELHI AT NEW DELHI
Tara Vitasta Ganju, J.
Swadesh Pal Gupta – Appellant
Versus
Late Smt. Shakuntala Harit Through Lr Amrit Prakash Harit – Respondent
RC.REV. 12 of 2023 & CM APPL. 2159 of 2023
Decided On : 31-05-2023

Advocates appeared:
Mr. Alok Kumar, Senior Advocate with Mr. Amit Kr. Singh, Advocate, for the Petitioner.
Mr. Sandeep Garg, Mr. Shobhit Gupta & Mr. Jatin Kumar, Advocates, for the Respondent.

The determination of mesne profits or compensation depends on the location, nature, and standard rate of rent, as guided by legal principles established in Atma Ram Properties (P) Ltd. vs. Federal Motors (P) Ltd. and Martin and Harris Private Limited and Another v. Rajendra Mehta and Others.

Headnote:

Eviction Order - Tenant - Atma Ram Properties (P) Ltd. vs. Federal Motors (P) Ltd., (2005) 1 SCC 705, Martin and Harris Private Limited and Another v. Rajendra Mehta and Others, (2022) 8 SCC 527

Fact of the Case:

The tenant filed a Revision Petition against the Eviction Order passed by the Trial Court. The parties submitted lease agreements and rental rates for similarly situated properties to determine use and occupation charges for the demised Premises.

Finding of the Court:

The Court fixed interim use and occupation charges at Rs.25,000 per month, considering the location and commercial use of the demised Premises. The execution of the Eviction Order was stayed subject to payment of the charges.

Issues: Interim use and occupation charges, comparison of rental rates for similar properties, interpretation of lease agreements, and application of legal principles for determining mesne profits or compensation.

Ratio Decidendi: The Court relied on Atma Ram Properties (P) Ltd. vs. Federal Motors (P) Ltd. and Martin and Harris Private Limited and Another v. Rajendra Mehta and Others to consider location, nature, and standard rate of rent as guiding factors for determining mesne profits or compensation.

Final Decision: The Court ordered the tenant to pay interim use and occupation charges at Rs.25,000 per month, stayed the execution of the Eviction Order, and directed the parties to file written synopsis and judgments for the next hearing.

JUDGMENT

Tara Vitasta Ganju, J. (Oral)

CM APPL. 2159/2023 [Application filed on behalf of Petitioner seeking interim relief]

1. The present Revision Petition has been filed by the Petitioner/tenant impugning the Order dated 20.09.2022 [hereinafter called `Eviction Order'] passed by the learned Senior Civil Judge cum Rent Controller, South-East, Saket Courts, New Delhi, in Eviction Petition bearing No. RC/ARC 1/2020 qua premises at Property No. 24, Bhogal Road, Jangpura, New Delhi-110014 [hereinafter called "demisedPremises"].

1.1. By way of the Eviction Order, the learned Trial Court has dismissed the Application for Leave to Defend/Contest filed by the Petitioner/tenant.

2. The matter was listed for the affixation of use and occupation charges qua the demised Premises. Both parties have filed their respective submissions along with sample copies of rent agreements of similarly situated properties in the vicinity of the demised Premises.

3. Learned Senior Counsel appearing on behalf of the Petitioner/tenant, Mr. Alok Kumar on instructions, submits that the Petitioner/tenant is agreeable to pay the use and occupation charges for the demised Premises. However, he submits that the demised Premises is one hall on the back side of the property and admeasures 324 sq. ft. which does not have electricity or water connection and does not open on a main street.

3.1. Learned Counsel of the Petitioner/tenant submits that the rental for the shop would thus not be more than Rs.15,000/- to Rs.17,000/- per month.Mr. Kumar seeks to rely upon the following two rental agreements to evidence the rentals for the like premises in the area:

(i) a shop admeasuring 394 sq. ft. on the Ground Floor with the rental of Rs.21,000/- per month situated on a main road;

(ii) a residential property admeasuring 55 sq. yds., situated opposite to the demised premises with a rental of Rs.13,000/- per month.

4. Learned Counsel for the Respondent/landlord Mr. Garg,on the other hand has filed three lease deeds of commercial shops, in support of his contention that the rentals for premises similarly situated as the demised Premises varies between about Rs.300/- to Rs.900/- per sq. ft. (approx.) depending on the location of the premises. Learned Counsel for the Respondent/landlord further submits that the location of the demised Premises is a prime location of South Delhi, being Bhogal/Jangpura and hence, the rental would be about Rs.75,000/- per month. It is, however, not disputed that the shop opens out onto the rear side of the lane.

4.1. Learned Counsel for the Respondent/landlord has further averred that the Petitioner/tenant and/or his family members have taken a shop admeasuring approximately 100 sq. ft. about 30 yds. away from the shop in question at the rate of Rs.25,000/- per month. He, thus, submits that the rate of commercial establishments in the vicinity would not be less than Rs.75,000/- per month.

4.2. Mr. Garg further submits that the Respondent is an 84 years old lady and that the demised Premises was let out in the year 1984 at the rate of Rs.440/- per month.

5. The law as laid down by the Supreme Court in Atma Ram Properties (P) Ltd. vs. Federal Motors (P) Ltd., (2005) 1 SCC 705 has been re-affirmed by the Supreme Court in Martin and Harris Private Limited and Another v. Rajendra Mehta and Others, (2022) 8 SCC 527, holding that the direction to pay mesne profits or compensation depends on the facts and circumstances of each case, with the location of the property whether it is in a village, city, or metropolitan areaas well as its naturewhether it is a commercial or residential area and the standard rate of rent serving as guiding factors in the facts of each case.

6. An analysis of the information given by the parties qua the lease agreement for similarly situated premises can be conveniently set forth in terms of the table's below:

6.1. Sample Lease Deeds placed by Petitioner/tenant on record:

NatureShop
UseCommercial
Size394 sq. ft.
RentRs.21,000/-

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
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