Mesne profits must reflect current market value and potential of the property, considering comparable lease agreements and inflationary trends.

JUDGMENT :

Mr. Harkesh Manuja, J.:-

CM-16813-CII-2024 in CR-4340 of 2024

This is an application filed under Section 151 CPC for preponing the date of hearing of the main case which is fixed for 16.10.2024, to some early date.

With the concurrence of learned counsel for the petitioner as well as learned Senior counsel for the respondent, the main case is preponed and taken up on board today itself.

The application stands disposed of.

MAIN CASE

1. Vide this common order, abovementioned two revision petitions are being disposed of as they involve common question of law and facts. For convenience, the facts are being drawn from CR-4340-2024.

2. By way of present revision petition filed on behalf of landlord-petitioner, challenge has been laid to an order dated 24.07.2024 passed by the Appellate Authority, Chandigarh whereby, mesne profits @ Rs.70,000/- has been assessed.

3. Briefly stating, the dispute in the present case stems from proceedings relating to eviction of respondents from an area measuring 435 square feet forming part of ground floor of SCO Nos.-92, 93 and 94, Sector 17-D, Chandigarh. The ejectment was sought at the instance of petitioner-landlord on the ground of bona fide necessity and the same was allowed by the learned Rent Controller, Chandigarh vide its decision dated 24.04.2023. Aggrieved thereof, the respondents filed statutory appeal before the Appellate Authority at Chandigarh and also prayed for grant of stay on execution of eviction order passed against them.

4. Upon notice, the petitioner-landlord filed an application seeking assessment of mesne profits @ Rs.2.5 lakhs per month before the Appellate Authority.

The same was opposed at the instance of respondents-tenants, however, the Appellate Authority vide order dated 24.07.2024 assessed the mesne profits @ Rs.70,000/- per month from the date of order of eviction while granting stay of operation of order of eviction/ejectment dated 24.04.2023 passed by learned Rent Controller.

Aggrieved thereof, both the sides have filed their separate revision petitions.

5. While relying upon lease deed dated 19.05.2022 pertaining to SCO-6, Sector 17-E, Chandigarh whereby, an area measuring 1150 square feet was leased out against Rs.5,00,000/- per month, learned counsel for the petitioner-landlord submits that the mesne profits for the tenanted premises in the case in hand measuring 435 square feet comes to Rs.1,90,000/- per month. He further refers to lease deed dated 12.04.2023 relating to SCO Nos.63-64, Sector 17-C, Chandigarh whereby, the lease was executed @ Rs.550/- per square feet and thus, submits that if the said lease deed was relied upon, the mesne profits with respect to the demised premises would come to Rs.2,40,000/-.

5.1. Learned counsel also refers to a lease deed dated 15.07.2022 relating to SCO No.13, Sector 17-E, Chandigarh whereby, an area measuring 2,000 square feet was leased out against Rs.9,00,000/- per month and submits that in case the same was to be considered; the lease amount with respect to the demised premises comes to Rs.1,69,000/- per month. Mr. Jain further places reliance upon decision rendered by this Court in CR-3348-2024 titled as “Jatinder Singh Vs. S. Prabhpreet Singh” to contend that the appreciation towards gold price between the year of commencement of tenancy till the month/year of ejectment order can also be considered while assessing mesne profits. He thus, submits that applying the aforesaid, the price of gold in the year 1972 being Rs.202/10 grams (24 k) which in the year 2023 rose to Rs.66,000/10 grams (24k) with an appreciation of 326 times, as such, when the rent of the tenanted premises in the year 1972 was Rs.600/-, the assessment of mesne profits in the year 2023 would be Rs.1,96,000 (326x600). The operative portion from the case of Jatinder Singh (Supra) which has been relied upon is reproduced hereunder for reference:-

11. Furthermore, considering the fact that the demised premises forms part of an already developed commercial are