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2023 Supreme(P&H) 2781

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
ARCHANA PURI, J.
Maya Ram Bajaj – Petitioner
Versus
Pankaj Dua – Respondent
CM-20230-CII of 2019 AND/IN CR-555 of 2019 (O&M)
Decided On : 16-11-2023

Advocates Appeared:
Mr. Satyendra Chauhan, Advocate for Mr. P.S.Khurana, Advocate; For the Petitioner
Mr. Divanshu Jain, Advocate; For the Appellant-Respondent.

The court determined that mesne profits should reflect the market rate while balancing the landlord's interests against the tenant's ability to pay, setting the amount at Rs. 13,000/- per month.

Headnote:(A) East Punjab Urban Rent Restriction Act - Section 13 - Eviction proceedings - Determination of mesne profits sought by landlord during the pendency of tenant's revision petition - Tenant liable to pay mesne profits at market rate since eviction order was passed - Court assessed mesne profits at Rs. 13,000/- per month based on valuation reports and market conditions. (Paras 1, 2, 32)

(B) Mesne Profits - Assessment - Court must balance landlord's entitlement to market rent against tenant's ability to pay - Valuation reports and rent agreements of similar properties considered while determining appropriate mesne profits. (Paras 17, 31)

Facts of the case:
The landlord filed for eviction of the tenant based on personal necessity, which was upheld by the Rent Controller and Appellate Authority. The tenant remained in possession while the revision petition was pending, leading to the landlord's application for mesne profits. (Paras 2, 9)

Findings of Court:
The court found that the tenant is liable to pay mesne profits at the rate of Rs. 13,000/- per month from the date of the eviction order until the decision of the revision petition. (Paras 32, 33)

Issues: The main issues included the assessment of mesne profits based on market rates and the balance between the landlord's and tenant's interests. (Paras 17, 18)

Ratio Decidendi: The court ruled that mesne profits must reflect the market rate as determined by valuation reports and comparable rent agreements, while ensuring that the amount is not excessively burdensome for the tenant. (Paras 31, 32)

Result: Application allowed; tenant ordered to pay Rs. 13,000/- per month as mesne profits.

JUDGMENT

Archana Puri, J.

CM- 20230-CII-2019

During the pendency of the revision petition, filed by the petitioner-tenant, to challenge the concurrent findings of the Courts below, vis-a-vis, eviction order, so passed vide judgment dated 25.01.2018, which stood affirmed, vide judgment dated 13.12.2018 passed by Appellate Authority, the applicant-landlord has filed the present application, thereby, seeking determination of mesne profits, for the use and occupation of the demised premises, while fixing the market rate of rent.

2. In the application, it is averred that the applicant-landlord had filed a petition under Section 13 of the East Punjab Urban Rent Restriction Act, thereby, seeking eviction of the tenant-Maya Ram Bajaj, who is petitioner in the revision petition, from the shop situated in the portion of property bearing No.13-B, Model Town, Jalandhar, adjoining Punjab and Sind Bank, Jalandhar, on the ground of personal necessity and the same was allowed vide order dated 25.01.2018 by learned Rent Controller. An appeal was filed by the tenant and the same was dismissed vide judgment dated 13.12.2018. Thereafter, the tenant had filed CR No.555-2019 before this Court and this Court was pleased to issue notice of motion and directed learned Executing Court to adjourn the case, beyond the date given by this Court and the interim relief, so granted, is continuing till date.

3. Further, it is averred in the application that tenant is in the possession of the shop measuring approximately 91 sq.ft. The admitted rate of rent was very meagre i.e. Rs. 142 per month and now the petitioner-tenant is liable to mesne profits at the existing market rate of rent, from the date of eviction order passed by learned Rent Controller i.e. 25.01.2018, because of the rents having tremendously increased in the said locality, with passage of time. He is enjoying the premises at a very meagre rent, whereby, the rent in the vicinity has already reached the mountainous level.

4. To substantiate the averments, in the application, reference has been made to M/s Atma Ram Properties (P) Ltd. v. Federal Motors Pvt. Ltd, 2005(1) RCR (Rent) Pg 1, Anderson Wright and Co. v. Amar Nath Roy, 2005(1) RCR (Rent) Pg 624, State of Maharashtra v. M/s Super Max International Pvt. Ltd., 2009(2) RCR (Rent) 246 and R.K.Bansal v. Jag Parvesh Sharma, 2012(2) RCR (Rent) Pg 203.

5. For the determination of the market rate of rent, the applicant-landlord has placed reliance upon the valuation report dated 10.09.2019 prepared by the qualified Architect/Engineer, who is an approved Government Valuer and the same has been prepared after considering the market value, size, shape, frontage, prevailing rate, location, commercial viability and also ascertaining the rent of the shops nearby the demised premises. Further, it is averred that the demised premises is situated in commercial hub of the city i.e. Model Town, Jalandhar, near Punjab and Sind Bank, Jalandhar, which is a very suitable location for doing any kind of business. Also further, it is stated in the application that as per the said valuation report, the area of the demised premises comes to be approx. 91 sq. ft. and the market rate of rent of demises premises is Rs. 150/- per sq. ft., so the total of the same comes around Rs. 13,650/-.

6. Also, reliance has been placed upon rent agreement of the similarly situated premises i.e. shop No.1, situated at 403-R, Model Town, near Punjab and Sind Bank, Jalandhar, at first floor, which is just opposite the demised premises and as per the same, the area of almost similar to the demised premises has been let out at Rs. 7,166/- per month and this premises is on the first floor. Relying upon the same, it is asserted that the market rate of rent of the demised premises, which is on the ground floor, would be double i.e. around Rs. 14,332/- per month.

7. Thus, it is averred that the petitioner-tenant is liable to pay the mesne profits, minimum at the rate of Rs. 15,000/- per month.

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