PUNJAB AND HARYANA HIGH COURT AT CHANDIGARH
Nidhi Gupta, J.
Suman @ Shammi Kumar Verma (Deceased) Through Lrs – Appellant
Versus
Manoj Kumar And Others – Respondent
CR-7138-2024 (O&M)
Decided on : 10-01-2025
JUDGMENT :
Nidhi Gupta, J.
Challenge in the present petition is to the order dated 30.04.2024 (Annexure P1) passed by the learned Additional District Judge, Bathinda, whereby the application filed by the respondent/landlord for assessment of mesne profit, has been allowed; and the petitioner has been directed to pay mesne profit at the rate of Rs.20,000/- per month.
2. Learned counsel for the petitioner inter alia submits that the petitioner is a poor person and does not have the capacity to pay the excessive mesne profits as directed vide the impugned order. It is pointed out that the demised premises is very small in size, situate only on the ground floor portion which is part of 50 years old building which is situated at narrow railway road. The Shop in question is part of a bigger building belonging to the respondent/landlord which comprises of about 3 floors out of which rear portion of ground floor, entire first floor, entire second floor are in possession of the landlord himself, who is conducting / running their own business of Hotels namely Manoj Hotel, Hotel Bansi Dhar, Hotel Paras etc. The demised premises in question has its small entrance towards railway road with narrow rear portion. The shop in question on a narrow-congested railway road. It is contended that thus, the said amount of Rs.20,000/- per month is excessive, inflated and exorbitant. It is reiterated that the demised premises is only a small ground floor shop in which the petitioner is running a small business.
3. It is also contended that the rent of the shops situated in the same street/locality is in the range of Rs.4-5 thousand per month. The petitioner had even produced rent receipts issued by the Municipal Corporation of similar shops with 10 feet verandah. However, the said evidence has been overlooked by the learned Additional District Judge while passing the impugned order. Thus, the assessed mesne profit is much more than the ongoing market value/prevailing rent of adjoining shops of similar size, age of building, situation of premises. It is accordingly prayed that the present petition be allowed and the mesne profits assessed vide the impugned order dated 30.04.2024 (Annexure P1) by the learned Appellate Authority, Bathinda be modified and reduced.
4. It is repeatedly reiterated that the petitioner is a poor person running a very small shop, and is, therefore, unable to pay the assessed mesne profit.
5. No other argument is raised on behalf of the petitioner.
6. I have heard learned counsel for the petitioner and perused the case file in great detail.
7. Brief facts of the case are that originally father of respondent No.1 was the owner in possession of the demised premises (describable as shop/property bearing Municipal No.4855, situated on Railway Station, Bathinda as shown in red colour in site plan having boundaries at present as under:- East: Tenant Harish Chander/street; West: Railway Road; North: Yash Vaishnu Dhaba; South: Pappu Vaishnu Dhaba);and he had rented out the same to the father of the petitioner more than 40 years ago for a sum of Rs.850/- per month. Father of the respondent no.1 died in 2001 and thereafter respondent No.1 became the owner; and sought eviction of the petitioner from the said property by way of eviction application under Section 13 of the East Urban Punjab Rent Restriction Act, 1949 (hereinafter referred to as 'the Act') dated 19.05.2017. The said petition was allowed by the learned Rent Controller, Bathinda vide order dated 09.10.2023 (Annexure P3). The said order was challenged by the petitioner before the learned Additional District Judge, Bathinda by way of RA No.23/2023, which is pending.
8. In the said appeal, the respondent No.1 filed an application dated 'Nil' (Annexure P4), for assessment of mesne profits asserting there in that the petitioner was in arrears of rent at the rate of Rs.850/- per month from 17.05.2017; and that the prevailing rate of rent for premises having lesser area was Rs.41,000/- per mont
Assessment of mesne profits must rely on cogent evidence and judicial notice of market conditions, balancing landlord and tenant interests.
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.
Court may reassess mesne profits based on market evidence and principles to avoid punitive outcomes.
Mesne profits must reflect current market value and potential of the property, considering comparable lease agreements and inflationary trends.
The main legal point established is the application of principles from Atma Ram Properties (P) Ltd. Vs. Federal Motors (P) Ltd. (2005) 1 SCC 705 and the Rajasthan Rent Control Act, 2001, to determine....
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