Assessment of mesne profits must rely on cogent evidence and judicial notice of market conditions, balancing landlord and tenant interests.

JUDGMENT :

(Harkesh Manuja, J.)

This order of mine shall dispose the above-mentioned two revision petitions, wherein similar facts and controversy are involved.

2. By the way of CR No.3348 of 2024, challenge has been laid to an order dated 18.05.2024 passed by the Appellate Authority, Amritsar, whereby mesne profits @ Rs. 25,000/- per months have been assessed upon an application moved at the instance of respondent/landlord. Whereas, in CR No. 4158 of 2024 filed under Article 227 of the Constitution of India read with Section 15(5) of the East Punjab Urban Rent Restriction Act (hereinafter to be referred as ‘the Act’), at the instance of the respondent/landlord prayer has been made for modification of the aforesaid order dated 18.05.2024 seeking for the enhancement of mesne profits.

3. Briefly stating, an eviction petition came to be filed at instance of respondent/landlord in relation to the demised shop measuring 50 sq. yards (528 sq. feet) forming part of property No. 1618/XII-11, Old No.2232/11 situated in Katra Sher Singh, Amritsar. The eviction was sought on the grounds of arrears of rent as well as personal necessity. The Rent Controller, Amritsar vide order dated 03.07.2023 passed eviction order against the petitioner/tenant.

4. Aggrieved thereof, petitioner-tenant filed first appeal, wherein after putting in appearance the respondent–landlord moved an application for grant of mesne profits @ Rs.50,000/- to Rs.70,000/- per month. Petitioner/tenant opposed the same and filed reply to the aforesaid application. The Appellate Court vide its decision dated 18.05.2024 assessed the mesne profits @ Rs.25,000/- per month in favour of the respondent-landlord. Aggrieved against the said order, both the aforesaid revision petitions have been filed by the two sides.

5. Learned counsel for the petitioner/tenant submits that perusal of impugned order shows that the determination of mesne profits was based on mere self-estimation and judicial notice of the market rent in Amritsar by the Appellate Authority. Learned counsel further submits that even the lease deed dated 16.05.2023 as relied upon by the respondent/landlord could not be considered for the purpose of making assessment of mesne profits in favour of the respondent/landlord as the property involved therein was situated at a distance of around 300-400 meters from the demised premises and the area was totally different, thus, there is no similarity between the comparative location of the two premises. Learned counsel also points out that the property in relation to lease deed dated 16.05.2023 was rented out in favour of public institution and, thus, the same was not to be relied for the purpose of determination of mesne profits in the case in hand wherein the tenancy was in favour of a private individual. In support of his submissions, learned counsel relies upon the decision dated 07.11.2022 passed by this Court in CR No.6461 of 2014 titled ‘Naresh Kumar Jain vs. Deepak Jain and another’ reported as 2022(2) R.C.R. (Rent) 642. Relevant paragraph No.12 thereof is extracted hereunder:-

“12. I have heard learned counsel for the parties and gone through the paper-book as well as records of the case. The principles enunciated in the judgements rendered by the Hon’ble Supreme Court as well as this Court in the Cases of R.K. Bansal Vs. Jag Pravesh Sharma, 2012 (4) RCR (Civil) 395; Vardhman Holdings Ltd. Vs. Ranbir Singh and others, 2015 (2) RCR (Civil) 164; Surinder Singh Vs. Dr. Davinder Mohan, 2006 (2) RCR (Rent) 26; M/s Atma Ram Properties (P) Ltd. Vs. M/s Federal motors Pvt. Ltd., 2005(1) RCR (Rent) 1; Anderson Wright and co. Vs. Amar Nath Roy and others, 2005 (2) RCR (Civil) 831; and Angoori Devi And Others Vs. Smt. Satya bhama, 2016 (5) RCR (civil) 1043; can be culled out in the following manner:-

i) Determine of the mesne profits has to be made by way of the summary manner without there being any detailed trial;

ii) It has to be based on cogent and reliable material placed on the re