IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
ALKA SARIN
Diwakar Malhotra @ Lucky (Deceased) Through Lrs – Appellant
Versus
Lovepreet Walia – Respondent
JUDGMENT :
Alka Sarin, J.
Present revision petition has been filed under Article 227 of the Constitution of India challenging the order dated 04.04.2025 passed by the Appellate Authority directing the tenant-petitioners to pay mesne profits @ Rs. 20,000/- per month.
2. The brief facts relevant to the present lis are that the landlord-respondents herein had filed a petition for ejectment of the tenant-petitioners and vide the impugned order dated 24.04.2024 the Rent Controller had directed the tenant-petitioners to vacate the demised premises. An appeal was preferred by the tenant-petitioners alongwith an application for stay of the impugned eviction order dated 24.04.2024. Another application was filed by the landlord-respondents for assessment of the mesne profits @ Rs. 35,000 per month. The property in question is a SCF located in New Motor Market, Chandigarh. It was stated by the landlord-respondents that similar SCF No.320 in the said market was rented out in the year 2013 @ Rs. 25,000/- per month with an annual increase of 8% and another SCF No.395 was rented out @ Rs. 22,000/- per month in the year 2013 with an annual increase of 7%. The only argument raised by the tenant-peti
Marshall Sons & Co. (I) Ltd. v. Sahi Oretrans (P) Ltd.
The court reaffirmed that tenants must pay mesne profits equivalent to market rent post-eviction, regardless of ongoing appeals.
Assessment of mesne profits must rely on cogent evidence and judicial notice of market conditions, balancing landlord and tenant interests.
Mesne profits must reflect current market value and potential of the property, considering comparable lease agreements and inflationary trends.
Court may reassess mesne profits based on market evidence and principles to avoid punitive outcomes.
The court has the authority to modify mesne profits and clarify payment terms in eviction cases.
The main legal point established in the judgment is the summary determination of mesne profits based on recent registered lease deeds and judicial determinations, while ensuring a balance between the....
(1) Once a decree for possession has been passed and execution is delayed depriving decree holder to reap fruits, it is necessary for Appellate Court to pass appropriate orders fixing reasonable mesn....
The court established that tenants must compensate landlords with mesne profits during the appeal process, reflecting current market rates, not just contractual rent.
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