IMPORTANT POINT
The judgment establishes the principle that disputes over ownership must be substantiated with evidence, and mesne profits can be calculated based on the property's potential. Interest on mesne profits may be awarded due to prolonged litigation.

JUDGMENT:

This Second Appeal is filed against the Judgment and Decree dated 20.08.2004 in A.S.No.238 of 2004 passed by the learned X – Additional Chief Judge (FTC), City Civil Court, Hyderabad in which the Judgment and Decree dated 24.04.2003 in O.S.No.3506 of 2000 passed by the learned X – Junior Civil Judge, City Civil Court, Hyderabad was confirmed except regarding the quantum of mesne profits. The trial Court granted Rs.30,000/- per month towards mesne profits, but it was reduced by the first appellate Court to Rs.24,000/-.

2. Respondents/Plaintiffs filed a suit in O.S.No.3506 of 2000 against the appellants/defendants seeking ejectment and mesne profits. Plaintiffs in the suit stated that they are absolute owners and landlords of the building bearing MCH No.6-2-510, situated at Nawab Manzil, Lungar House, Hyderabad admeasuring about 7566 Sq.yrds surrounded by a compound wall. The defendants have obtained the suit house from the plaintiffs on 01.08.1958 and also executed lease deed in favour of the plaintiffs on 01.03.1959. The tenancy is month to month and commencing from the 1st of every month and expires by the end of every month. The monthly rent of the said premise was Rs.1,500/- exclusive of electricity and water charges. The defendants have committed willful default in payment of monthly rents since February, 1993 till September 1999 for a continuous period of 80 months, amounting to Rs.1,20,000/- @ Rs.1,500/- per month, but plaintiffs restricted their claim of arrears of rent from October 1996 to September 1999 for a sum of Rs.54,000/-. They also stated that defendants have caused damage to the suit building and failed to pay the monthly rent and thus plaintiffs got issued legal notice dated 15.03.1999, terminating the tenancy of the defendants and directed them to hand over the possession of the suit property by 01.11.1999. Though the defendants received the said legal notice, they did not choose to give any reply and in spite of termination, failed to vacate and deliver the possession of the suit property and thus Plaintiffs are entitled to claim mesne profits @ Rs.45,000/- from 01.11.1999 onwards. Hence, the suit for ejectment and payment of mesne profits from 01.03.2000 was filed.

3. In the written statement filed by the defendants, they stated that during February, 1987 they came to know from the District Collector, Hyderabad that the area in which the suit building exists was classified as Central Government Military Area and the said classification was as per the Town Survey Proceedings and thus the property was owned by Central Government, hence they stopped paying the rents. Plaintiffs issued several notices dated 22.03.1990, 06.04.1994, 21.04.1994, 05.03.1999, 03.08.1999 and 15.09.1999. As the building was classified as Central Government Military Area, the question of vacating and handing over the possession on 01.11.1999 does not arise and the payment of mesne profits also does not arise. They further stated that property belongs to Central Government as per the revenue records and thus plaintiffs have no cause of action to file the suit. Vide letter No.9500 of 1987 dated 22.12.1987, District Collector, Hyderabad had intimated that the building exists was classified as Government Military area and plaintiffs have to produce title deeds to claim rents or mesne profits. As the property belongs to Central Government, plaintiffs have no right or title or interest over the suit property and filed suit only to grab the suit property.

4. In a rejoinder filed by the plaintiffs, they stated that defendants have not filed the letter received from the District Collector vide reference No.9500 of 1987 before the Court nor served a copy to the plaintiffs and hence plaintiffs bonafidely believing that it was created and got up only to deprive the lawful right of the plaintiffs to knock away the valuable property admeasuring 7566 Sq.yrds situated at Lungar House. Moreover, defendants paid rents till 1993.

5. The parties her