Debangana Ray
Published on July 7, 2022 at 19:20 IST
The Supreme Court has reiterated that once a decree for eviction is stayed, it is necessary for the appellate court to fix the mesne profits to be paid by the tenant to the landlord for continuing the possession of the premises.
“Thus, after passing the decree of eviction the tenancy terminates and from the said date the landlord is entitled for mesne profits or compensation depriving him from the use of the premises”,
It was observed by bench comprising Justices Indira Banerjee and JK Maheshwari in the case M/s Martin & Harris Private Ltd vs Rajendra Mehta.
The bench made these observations while considering a special leave petition filed by a tenant challenging an order of the Rajasthan High Court putting a condition to pay Rs 2.50 lakhs as monthly rent to the landlord to stay the execution of the eviction decree.
The appellant contended that as per Section 20 of Rajasthan Rent Control Act, 2001, the maximum amount of mesne profit may be payable three times of the standard rent in case the premises is used for commercial purposes.
It was argued that the mesne profit, as determined by the High Court, is excessive without looking to the year of construction of premises, location of the property which is on inside road of colony and also without taking note of the DLC rate.
Therefore, the order impugned may be set aside and the quantum of mesne profits may be revised to three times of the amount of rent making it Rs.1,35,000/ per month.
The Supreme Court noted that the 2001 Act came into effect from 01.04.2003 and had no applications to the proceedings initiated under the 1950 Act (which was applied in the present case).
The Court further observed the the basis of determination of the amount of mesne profit depends on the facts and circumstances of each case considering place where the property is situated i.e. village or city or metropolitan city, location, nature of premises i.e. commercial or residential are and the rate of rent precedent on which premises can be let out are the guiding factor in the facts of individual case.
It did not find any fault with the manner of determination adopted by the High Court and dismissed the petitions.