Shashwati Chowdhury
Published on: July 8, 2022 at 16:11 IST
According to the Supreme Court, once an eviction order is stayed, the appellate court must set the mesne profit that the tenant must pay the landlord in order to continue the possession the premises.
The tenancy terminates as a result of the passing of the eviction decree, and the landlord is entitled to mesne profits or compensation depriving him from the use of the premises, observed a bench comprising
With regard to the case M/s Martin & Harris Private Ltd vs. Rajendra Mehta, observed Justices Indira Banerjee and JK Maheshwari.
The Bench referred to the Supreme Court’s decision in Marshall Sons & Co (1) Ltd vs. Sahi Oretrans (P) Ltd and Another-(1999) 2 SCC 325, which held that once a decree for possession has been passed and the execution is delayed, denying the decree holder the opportunity to reap the fruits, it is necessary for the Appellate Court to pass appropriate orders fixing reasonable mesne profits that may be equivalent to the market rent that must be paid by a person who is holding over the property.
The Bench further remarked that a three-judge panel in the case State of Maharashtra vs. Super Max International Pvt. Ltd. and others (2009) 9 SCC 772 had reiterated in the Atma Ram (above) case. The Rajasthan High Court order that required a tenant to pay Rs. 2.50 lakhs in rent to the landlord each month in order to stay the execution of the eviction order challenged by a tenant in a special leave petition.
The Court further noted that the basis for determining the amount of mesne profit depends on the facts and circumstances of each case, taking into account the location of the property, such as a village, city, or metropolitan city, as well as the nature of premises—whether they are commercial or residential—and rate of rent precedent on which premises can be out .
The High Court dismissed the petitions without finding any fault with the manner of determination adopted by it.
