The court established that tenants must compensate landlords with mesne profits during the appeal process, reflecting current market rates, not just contractual rent.

ORDER

1. Today the matters come up on two applications. One (No.23159 dated 25.07.2017) filed by the respondents-plaintiffs (for short, 'the plaintiffs') under Order 41 Rule 5 read with Section 151 of CPC for grant of mesne profit @ of Rs.40,000/- per month, and two (No.l dated 01.03.2021) for being heard on the application for mesne profit.

2. The Co-ordinate Bench of this Court vide order dated 04.04.2008 directed that the status-quo as exists today shall be maintained by the parties so far as suit property is concerned. Thereafter, the plaintiffs filed an application under Order 41 Rule 5 read with Section 151 of CPC for grant of mesne profit @ Rs.40,000/- per month. To substantiate their claim, the plaintiffs have produced copies of lease deeds executed by Amit Kumar Soni and Smt. Lajwanti Soni in favour of Punjab National Bank, lease deed executed by Ravi Mohan Mangal in favour of Canara Bank along with site plan, and rent deed executed by Smt. Umrao Kanwar Bharkatiya in favour of State Bank of India along with site plan.

3. It is submitted by learned counsel for the plaintiffs that property in question is situated at Dargah Bazar Ajmer and its area is 240 Sq. Ft., for which the rental value is more than Rs.40,000/- per month. It is also submitted that the both the Courts below have passed the decree of eviction against the appellants-defendants (for short, 'the defendants') and therefore the defendants are in wrongful possession of the property in question. He further submits that looking to the price escalation of each and every commodity and inflation of money value, the rental premises can fetch the rent @ Rs.40,000/- per month. He further submits that since the appeal has already been admitted, stay has been granted and the disposal of the appeal may take considerable time, the plaintiffs are required to be compensated equitably by the defendants, who are in use and occupation of the property in question. The plaintiffs are thus entitled to get the mesne profit at the prevailing market rate in the area. In support of his contentions, he has placed reliance on the judgment of the Hon'ble Apex Court in the case of M/s Atma Ram properties (P) Limited Vs. M/s Federal Motors Pvt. Limited - 2005 (1) SRJ 320.

4. On the other hand, learned counsel for the defendants has opposed the same and submits that the rent of the nearby shops is less. The rent deeds annexed to the application are not genuine, therefore the application deserves to be dismissed.

5. Heard. Considered.

6. It is to be noted here that the defendants have not produced any document to controvert the documents produced by the plaintiffs in support of the application.

7. Having regard to the submission made by learned counsel for the parties and on perusal of the record, it transpires that a decree of the eviction was passed by the trial court and the same was affirmed by the appellate court.

8. In Atma Ram properties (Supra), Hon'ble Supreme Court has observed that while ordering stay, the appellate Court is justify in putting the appellant-tenant on terms and direct him to compensate the landlord by payment of a reasonable amount as mesne profit. Hon'ble Supreme Court summed up the conclusion as under:-

"(1) while passing an order of stay under Rule 5 of Order 41 of the Code of Civil Procedure, 1908, the appellate Court does have jurisdiction to put the applicant on such reasonable terms as would in its opinion reasonably compensate the decree-holder for loss occasioned by delay in execution of decree by the grant of stay order, in the event of the appeal being dismissed and in so far as those proceedings are concerned. Such terms, needless to say, shall be reasonable;

(2) in case of premises governed by the provisions of the Delhi Rent Control Act, 1958, in view of the definition of tenant contained in clause (I) of Section 2 of the Act, the tenancy does not stand terminated merely by its termination under the general law; it terminates with the passing of the decree f