Back
IN THE HIGH COURT OF ALLAHABAD
NEERAJ TIWARI, J.
Punjab National Bank Earlier Oriental Bank Of Commerce – Appellant
Versus
Sanjeevani Shiksha Samiti – Respondents
S.C.C. Revision No. - 76 of 2024
Decided on : 27-05-2024
RENT - TENANCY AND MESNE PROFIT - Uttar Pradesh Regulation of Urban Premises Tenancy Act, 2021, Section 9; Transfer of Property Act, 1882, Section 106 - The court discussed the applicability of the Uttar Pradesh Regulation of Urban Premises Tenancy Act, 2021, which limits the enhancement of mesne profit to 7% per annum for non-residential buildings. However, it was determined that since the suit was filed before the enactment of this Act, its provisions were not applicable. The court emphasized that upon termination of tenancy under Section 106 of the Transfer of Property Act, the tenant's status becomes that of a trespasser, and mesne profit should be assessed based on the market rate, not statutory provisions.
Fact of the Case:
The revisionist challenged an order from the Small Causes Court regarding the vacation of a commercial property and the enhancement of mesne profit. The revisionist agreed to vacate the property within a year and pay a monthly rent but contested the 15% enhancement of mesne profit.
Finding of the Court:
The court found that the enhancement of mesne profit at 15% was justified based on the market rate provided by the plaintiff, as the tenancy had been terminated, and the revisionist was considered a trespasser. The court upheld the trial court's decision, stating that the provisions of the Uttar Pradesh Regulation of Urban Premises Tenancy Act, 2021, were not applicable to this case.
Issues: Whether the enhancement of mesne profit could be limited to 7% per annum under the Uttar Pradesh Regulation of Urban Premises Tenancy Act, 2021, and whether the tenant's status after termination of tenancy affects the calculation of mesne profit.
Ratio Decidendi: The court held that upon termination of tenancy under Section 106 of the Transfer of Property Act, the tenant's status is akin to that of a trespasser, and mesne profit should be determined based on the market rate, not limited by statutory provisions applicable to rent control.
Final Decision: The revision was dismissed, affirming the trial court's order regarding the payment of mesne profit at the rate of 15%.
JUDGMENT :
Hon'ble Neeraj Tiwari, J.
1. Heard Sri P.K. Jain, learned Senior Advocate assisted by Sri Saurabh Kumar Pandey, learned counsel for the revisionist and Sri Atul Dayal, learned Senior Advocate assisted by Mr. Utkarsh Birla, learned counsel for the opposite party.
2. By way of present revision, revisionist is assailing the impugned order dated 27.2.2024 passed in S.C.C. Suit No. 7 of 2008 by the Judge, Small Causes Court/ADJ Court No.7, Ghaziabad.
3. Case was heard on 17.5.2024, Court has passed the following order:-
2. Sri P.K. Jain, learned Senior Advocate assisted by Sri Saurabh Kumar Pandey, learned counsel for the revisionists submitted in the present revision impugned order is having two parts; first about the vacation of commercial house in question occupied by the Punjab National Bank Earlier Oriental Bank Of Commerce and second about the decretal amount and enhancement of mesne profit at the rate of 15% per annum.
3. So far first part is concerned, he is ready to vacate the commercial house in question within one year and also pay the monthly rent of Rs. 3,27,000/-for the same period, which is not objected by Mr. Atul Dayal, learned Senior Advocate appearing on behalf of petitioner.
4. So far second part is concerned, he is having no objection to the decretal amount, but he is challenging the enhancement of mesne profit at the rate 15% per annum.
5. Heard learned counsel for both the parties on this issue.
6. Judgement reserved.
7. Put up this case for order on 27.5.2024.
8. Till the delivery of judgment, parties shall maintain status quo as on date.”
4. Considering the submission made by learned counsel for the revisionist in aforesaid order dated 17.5.2024, he is granted one year time to vacate the commercial accommodation from today with following condition;
(ii) Revisionist is directed to deposit all decretal amount within four weeks from today before learned Judge, Small Causes Court/ADJ Court No.7, Ghaziabad. In case, any amount is already deposited, same shall be adjusted against the decretal amount.
(iii) Revisionist is also directed to pay Rs. 3,27,000/-as monthly rent of commercial accommodation in question per month on month to month basis on or before 7th day of every month till the vacation of house.
(iv) In case of failure of fulfilment of any conditions so imposed by the Court, this order would lost the effect and plaintiff-respondent is at liberty to proceed against the defendant-revisionist in accordance with law.
5. Accordingly, the revision is disposed of so far it relates to vacate the commercial accommodation in question only.
6. Learned Senior Counsel submitted that in the year 2021 by enactment of State Legislation, Uttar Pradesh Regulation of Urban Premises Tenancy Act, 2021 (hereinafter referred to as Act, 2021) came into force, which provides maximum enhancement of mesne profit at the rate of 7% per annum for non residential building, therefore, in all eventuality, mesne profit may not be enhanced beyond 7%. In the present case, it has been enhanced to the tune of 15% per annum. In support of his contention he has placed reliance upon the judgment of Apex Court in the cases of State of Maharashtra and another vs. Super Max International Private Limited and others reported in (2009) 9 SCC 772 and Smt. Anguri Devi Since Deceased and 10 others vs. Smt. Sampatti Devi and 10 others passed in Writ-A No. 2853 of 2024 decided on 26.2.2024.
7. Per Contra, Sri Atul Dayal, learned Senior Advocate assisted by Mr. Utkarsh Birla, learned counsel for the oppo
The court established that after the termination of tenancy, the tenant is treated as a trespasser, and mesne profit is to be assessed based on the market rate rather than any statutory rent control ....
(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....
Assessment of mesne profits must rely on cogent evidence and judicial notice of market conditions, balancing landlord and tenant interests.
The central legal point established in the judgment is the determination of fair rental value based on market rates and the rejection of unreasonable valuation reports.
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.
The main legal point established in the judgment is that the assessment of mesne profits should consider the location, condition of the premises, nature and age of the construction, maintenance, and ....
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
