PUNJAB AND HARYANA HIGH COURT AT CHANDIGARH
NIDHI GUPTA
Suman @ Shammi Kumar Verma (Deceased) – Appellant
Versus
Manoj Kumar – Respondent
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
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....
The main legal point established in the judgment is the assessment of mesne profits based on the profits earned by the wrongful user or the profits which the wrongful user would reasonably have earne....
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