The determination of mesne profit after the termination of tenancy under Section 106 of the Transfer of Property Act, 1882 should be based on the prevailing market rate, and not on the provisions of the Rent Control Act or the Uttar Pradesh Regulation of Urban Premises Tenancy Act, 2021.

ORDER

“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. 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;

(i) Revisionist is directed to file affidavit within two weeks from today before learned Judge, Small Causes Court/ADJ Court No.7, Ghaziabad to vacate the commercial accommodation in question within the time given by the Court.

(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.

2 of 7

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 opposite party has vehemently opposed and submitted that present impugned order has been passed pursuant to S.C.C. Suit No. 7 of 2008 and at that point of time Act, 2021 was not in force. Even U.P. Act No. 13 of 1972 was also not applicable. He firmly submitted that only way to fix the enhancement of mesne profit is market rate. He has produced the market rate through affidavit before the SCC Court, which was neither denied nor contro