Tenant remains liable for mesne profits after lease expiration unless proper notice is issued, with courts affirming owner's rights to possession and profit recovery.

JUDGMENT

Neena Bansal Krishna, J.

1. The plaintiff has filed the present suit for Possession along with arrears of mesne profits and occupation.

2. The facts in brief are that the plaintiff, M/s. Devansh Real Estate Private Limited acquired suit property bearing No. X/2538, commonly known as number 4/12, Asaf Ali Road, New Delhi (hereinafter referred to as "suit property") vide a Registered Sale Deed dated 22.09.2010 executed in its favour by its erstwhile owners Shri Deep Chand Mittal and other four owners collectively (referred to as "the Mittals"). Contemporaneously, the plaintiff had also been assigned the right to recover the arrears from the various occupiers including erstwhile tenants as also other tenants who were in use and occupation of various portions of the building, vide a Deed of Assignment that was also executed between the parties on the same date.

3. It is submitted that the entire ground floor (except passage) and the mezzanine (excluding the staircase) above the floor of the suit property was let out by the then owners/landlords i.e. `the Mittals' to the United Bank of India (amended as "Punjab National Bank"), `the defendant Bank' some 45 years ago who is in use and occupation of the aforesaid accommodation since then. On 15.10.1998 a fresh Lease was executed between the Mittals and defendant Bank for a fixed period of 10 years w.e.f. 01st January, 1998 which expired by efflux of time on 31st December, 2007. The defendant paid the agreed rent @ Rs. 87,500/- per month as per the terms of Lease Deed, to the erstwhile owners till 31.12.2007.

4. The plaintiff sent a Letter dated 22.10.2010 informing the defendants about the execution of the Sale Deed and also the Deed of Assignment in favour of the plaintiff. Simultaneously, the erstwhile owners also wrote a letter dated 27.09.2010 to the Defendant Bank informing about the sale of property to the plaintiff. The defendant Bank acknowledged the receipt of these facts in its Letter dated 03.12.2010 and also the earlier communication dated 28th November, 2010 of the plaintiffs.

5. The plaintiff has claimed that since 31.12.2007, the defendant is in illegal, unlawful and unauthorized use and occupation of the premises in suit. The defendant had admitted to tender the rent/occupation charges escalated by 25% i.e. @ Rs. 1,09,375/- per month to the erstwhile owners but the plaintiff has reason to believe that the tender so made was not accepted by the Mittals, who had required the defendant Bank to either negotiate and execute a fresh lease Deed at the prevailing market rate or vacate the premises forthwith. The erstwhile owners did not assent in any manner to the defendant to continue to use and occupy the suit premises.

6. The plaintiff served a Legal Notice dated 28.11.2010 on the defendants claiming possession and the payment of mesne profits/damages for use and occupation charges. The defendant Bank gave a reply dated 03.12.2010 to which a reply/rejoinder was given by the plaintiff on 18.12.2010.

7. The Plaintiff has claimed that defendants are liable to pay the mesne profits/damages for use and occupation of the aforesaid accommodation at the prevailing rate of Rs. 250 per sq. ft. per month w.e.f. 01.01.2008 till the date possession is handed over to the plaintiff.

8. The suit has been therefore filed for possession and mesne profits w.e.f. 01.01.2008 at the rate of Rs. 6,00,000/- per month in addition to the arrears of occupation charges amounting to Rs. 2,22,00,000/- along with the interest at the rate of Rs. 12 % per annum.