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2024 Supreme(Online)(Bom) 1033

BOMBAY HIGH COURT
SANDEEP V. MARNE, J
UNION OF INDIA THR. DEFENCE SECRETARY AND ORS. – Appellant
Versus
DR. RUSTUM SAM BOYCE – Respondent
CRA 269 / 2024



Important Points

Mesne profits cannot be awarded from the date of filing of a suit if possession was lawful until the decree was passed, which determines the liability for such payments.

Subject

Civil Law - Property Law

Act Referred

Code of Civil Procedure, 1908 : Order 20 Rule 12(1)(c)
Bombay Rent Act

Headnote

(A) Code of Civil Procedure, 1908 - Order 20 Rule 12(1)(c) - Bombay Rent Act - Recovery of possession and mesne profits - Civil Revision Applications challenging the orders of the Small Causes Court regarding mesne profits from the date of filing of the suit - Court held that mesne profits cannot be directed from the date of filing as possession was lawful until the decree was passed on 4 September 2000. (Paras 1, 26)

(B) Jurisdiction of Courts - The inquiry into mesne profits is independent of the main suit and cannot alter the decree's terms regarding payment dates. (Paras 19, 20)

Facts of the case:
The Union of India challenged orders regarding mesne profits determined at Rs. 2,50,000/- per month from the date of filing the suit (29 July 1979) until 20 November 2002, following decrees for possession. (Paras 1, 2)

Findings of Court:
The court ruled that the Applicants were only liable for mesne profits from the date of decree (4 September 2000) until execution (20 November 2002). (Paras 27)

Issues: The main issues were whether mesne profits could be directed from the date of filing the suit and the quantum of mesne profits awarded. (Paras 13, 26)

Ratio Decidendi: The court concluded that possession remained lawful until the decree was passed, thus mesne profits were due only from that date onward. (Paras 18, 27)

Result: Civil Revision Applications partly allowed; mesne profits ordered only from the date of decree. (Paras 28)

JUDGMENT :

1) Union of India has filed these Civil Revision Applications challenging the Orders dated 3 March 2022 passed by the Appellate Bench of the Small Causes Court, by which Misc. Appeal No.325 of 2015 filed by the Applicant-Union of India has been dismissed, whereas Misc. Appeal No.354 of 2014 filed by the Respondent/Decree- holder is allowed by determining the mesne profits in respect of the suit property at the rate of Rs. 2,50,000/- per month from the date of filing of the suit i.e. 29 July 1979 till 20 November 2022 along with interest @ 6% p.a. By its order dated 9 May 2014, the Small Causes Court had determined the amount of mesne profits @ Rs.2,00,000/- per month with a direction to pay the same from the date of filing of the suit till 20 November 2000 with interest @ 6% p.a. The Appellate Bench has enhanced the quantum of mesne profits to Rs. 2.50,000/- per month.

2) R.A.E.& R. Suit No.1429/4857 of 1979 was filed by Dr. Sam Framrose Boyce against Union of India and its Military Estate Officer for recovery of possession of the suit premises named Boyce Building situated at Gowalia Tank Road, August Kranti Marg, Mumbai-400 026 (suit premises). The suit premises were let out to Defendant-Union of India on monthly tenancy. It appears that during pendency of the suit, Original Plaintiff passed away and his heirs, Dr. (Mrs.) Roshan S. Boyce and Dr. Rustom S. Boyce were brought on record. The suit came to be decreed on the grounds of arrears of standard rent and permitted increases by decree dated 4 September 2000. Defendant-Union of India was directed to handover possession of the suit premises to the Plaintiff. The claim for arrears of rent was however dismissed. The Small Causes Court directed separate enquiry into mesne profits from the date of filing of the suit till handing over of possession of the suit premises to the Plaintiff. The decree was confirmed by the Appellate Bench of the Small Causes Court on 6 June 2002. The decree was thereafter executed on 20 November 2002.

3) The Plaintiff/Decree-holder took out Misc. Notice No. 794 of 2003 for quantification of mesne profits under the provisions of Order 20 Rule 12(1)(c) of the Code of Civil Procedure, 1908 (Code). The Small Causes Court allowed Misc. Notice No. 794 of 2003 and determined the mesne profits in respect of the suit premises at the rate of Rs.2,00,000/- per month and directed the Defendant to pay the same from the date of filing of the suit i.e. 29 July 1979 till the date of execution of the decree i.e. 20 November 2002 alongwith interest @ 6%p.a.

4) Cross-Appeals were filed by the parties challenging the Order of the Small Causes Court dated 9 May 2014 before its Appellate Bench. Plaintiff/Decree-holder filed Misc. Appeal No. 354 of 2014 for enhancement of quantum of mesne profits as well as rate of interest, whereas, Defendant-Union of India filed Misc. Appeal No. 325 of 2015 challenging quantification of mesne profits @ Rs.2,00,000/- per month by the Small Causes Court. By two separate orders passed on 3 March 2022, the Appellate Bench has dismissed Misc. Appeal No. 325 of 2015 filed by the Defendant-Union of India. Misc. Appeal No. 354 of 2015 filed by Plaintiff/Decree-holder is however partly allowed enhancing the quantum of mesne profits to Rs.2,50,000/- with direction to the Defendants to pay the same from the date of filing of the suit i.e. w.e.f. 29 July 1979 till 20 November 2002 alongwith interest @ 6% p.a. Aggrieved by the orders passed by the Appellate Bench of the Small Causes Court on 3 March 2022, the Defendants-Union of India have filed the present Civil Revision Applications.

5) The delay in filing Civil Revision Application No. 269 of 2024 has been condoned by this Court by order dated 3 April 2024.

6) Mr. Redij, the learned counsel would appear on behalf of the Applicants in both the Civil Revision Applications and submit that the Small Causes Court and its Appellate Bench have erred in directing payment of mesne profits @ Rs. 2,50,0

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