The main legal point established in the judgment is that the assessment of mesne profits should consider the location, condition of the premises, nature and age of the construction, maintenance, and commercial viability, and should balance the interests of the landlord and the tenant.

ARCHANA PURI, J.

1. These are two revision petitions filed by the landlady and tenant against the order dated 13.04.2018 passed by learned Appellate Authority, while assessing the 'mesne profits' for the entire basement and the ground-floor of the demised premises i.e. SCO No.167, Sector-37C, Chandigarh @ Rs.85,000/- per month.

2. For the convenience of discussion, the parties are referred to landlady and tenant.

3. During the pendency of the appeal filed by the tenant to challenge the eviction order passed against him, the landlady had filed an application for issuance of direction before learned Appellate Authority to order payment of mesne profits, at the market rate, during the pendency of the appeal. There is specific averment of the landlady that the present market rate of rent of ground-floor is Rs.1,57,500/- per month, as per registered lease deed dated 06.10.2016 of the adjoining SCO No.164, Sector-37C, Chandigarh, which is Annexure A-1 and rent of basement is Rs.48,400/- per month, as per the registered lease deed dated 16.03.2016, attached as Annexure A-2.

4. The application was contested by the tenant, while submitting that he is a statutory tenant and he cannot be penalized by mesne profits, as appeal is in continuation of the eviction petition. Moreover, it was asserted that even if mesne profits are to be assessed, then in that eventuality, proper enquiry had to be conducted. Various factors, such like condition of the building, locality, amenities provided in the building, nature of construction, condition of flooring etc., are to be considered. However, it is denied that the rent of similarly situated premises is Rs.1,57,500/- as alleged by the landlady. The old tenancy, as such, cannot be compared with newly inducted tenant. It is denied that SCO in question is having same area and facilities, as compared to the demised premises. In fact, SCO No.164 is newly constructed and renovated building, having maximum covered area, at the ground-floor, as per the latest building byelaws and permissible covered area. It is further submitted that the basement of SCO No.164 is lying vacant, which fact has been concealed by the landlady and as such, cannot be taken into consideration. Moreover, the rent varies from the class of accommodation, quality of construction and interiors.

5. It is submitted that SCO No.167, ground-floor was let out vide lease deed dated 27.03.2014, for a period of five years, w.e.f. 01.04.2013, at a monthly rent of Rs.50,000/-, with annual increase of 5%. The present rent of the said premises is Rs.60,775/- per month. The tenant in the said premises is running the business of jewellery. Copy of the lease deed is Annexure A-1. Also, further SCO No.171, ground floor was let out vide deed dated 18.03.1998, for a period of 25 years, w.e.f 15.03.1998 to 14.03.2023, at the monthly rent of Rs.18,000/- with annual increase of Rs.800/- upto 14.03.2013 and thereafter, annual increase, at the rate of Rs.1000/- every year, upto 14.03.2023. The present rate of said premises is Rs.34,200/- per month. The tenant in the said premises is running a chakki. Copy of the sale deed dated 18.03.1998 is Annexure A-2.

6. Further, it has been submitted that this Court had ordered in the case of SCO No.162, Sector-37C, Chandigarh, to pay rent/mesne profits at rate of Rs.15,000/-per month, during the pendency of the revision petition and the said tenant was paying the rent @ Rs.15,000/- per month. Moreover, it is submitted that reasonableness has to be seen from both sides, while making an assessment of mesne profits. The actual market rent cannot be assessed as mesne profits and the same can only be assessed, keeping in view the condition of the building and continuous possession of the tenant.

7. After hearing learned counsel for the parties, learned Appellate Authority, vide impugned order dated 13.04.2018, affixed the mesne profits to the tune of Rs.85,000/- per month.

8. Feeling aggrieved by the aforesaid order, the rival parti