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PUNJAB AND HARYANA HIGH COURT AT CHANDIGARH
VIRINDER AGGARWAL
Sheikhupura Transport Company Private Limited Through Its Director – Appellant
Versus
Jagjit Singh – Respondent
JUDGMENT :
Virinder Aggarwal, J.
1. Petitioner filed this revision petition under Article 227 of the Constitution of India read with Section 15(5) of East Punjab Urban Registration Act, 1949 assailing the order dated 12.08.2025 passed by learned Appellate Authority, Ludhiana vide which the application filed by the petitioner for staying the operation of the impugned eviction order dated 23.10.2024 as well as application dated 28.01.2025 filed by respondent No. 1 for fixing mesne profit on account of use and occupation charges of the property has been disposed of subject to payment of Rs.75,000/- per month from the date of order of eviction. The order has been assailed on the ground that the Appellate Authority has passed the order without considering reply of the petitioners and the order is contrary to the settled principles of law. The assessment of mesne profit to the tune of Rs.75,000/- is far more than the contractual rent of Rs.600/- which was provisionally assessed by the learned Rent Controller and that the assessment of mesne profit at the rate of Rs.75,000/- per month has literally rendered the appeal to be infrucutous. The learned Appellate Authority has not taken into con
Assessment of mesne profits must rely on cogent evidence and judicial notice of market conditions, balancing landlord and tenant interests.
Court may reassess mesne profits based on market evidence and principles to avoid punitive outcomes.
The court reaffirmed that tenants must pay mesne profits equivalent to market rent post-eviction, regardless of ongoing appeals.
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.
Mesne profits must reflect current market value and potential of the property, considering comparable lease agreements and inflationary trends.
(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....
Mesne profits can only be claimed from the date of the eviction decree, not from the date of filing the suit, as possession remains lawful until the decree is passed.
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