Case Note & Summary
The Union of India, as tenant of a building known as Boyce Building in Mumbai, was sued for eviction by the landlord Dr. Sam Framrose Boyce in 1979 under the Bombay Rent Act. The suit was decreed on 4 September 2000 on grounds of arrears of rent, and possession was delivered on 20 November 2002. The decree directed a separate enquiry into mesne profits from the date of filing of the suit (29 July 1979) till delivery of possession. In the mesne profits enquiry, the Small Causes Court fixed mesne profits at Rs. 2,00,000 per month from the date of suit till possession, with interest at 6% per annum. Both parties appealed: the landlord sought enhancement, and the Union of India challenged the quantum and the starting date. The Appellate Bench of the Small Causes Court enhanced the mesne profits to Rs. 2,50,000 per month from the date of suit till possession, with interest at 6% per annum, and dismissed the Union's appeal. The Union of India filed two civil revision applications under Section 115 CPC challenging the orders. The High Court dismissed both revisions. On the issue of starting date, the court held that the mesne profits enquiry is in the nature of execution of the decree and the court cannot go behind the decree which directed payment from the date of suit. The decree had attained finality, and the Union had not raised this objection before the lower courts. The court distinguished Atma Ram Properties (P) Ltd. v. Federal Motors (P) Ltd. and followed Crompton Greaves Ltd. v. State of Maharashtra and Anderson Wright & Co. v. Amar Nath Roy, which held that mesne profits can be awarded from the date of institution even in Rent Act cases. On quantum, the court found that the courts below had considered valuation reports and evidence, and the determination of Rs. 2,50,000 per month was not perverse or based on no evidence. The High Court declined to interfere in revisional jurisdiction. Both civil revision applications were dismissed.
Headnote
A) Civil Procedure - Mesne Profits - Enquiry under Order 20 Rule 12 CPC - Mesne profits can be awarded from date of institution of suit even in Rent Act cases - The court conducting mesne profits enquiry acts in execution of the decree and cannot go behind the decree directing payment from date of suit - The decree having attained finality, the objection that mesne profits should be from date of decree cannot be raised in mesne profits enquiry (Paras 10-14).
B) Civil Procedure - Mesne Profits - Quantum - Revision under Section 115 CPC - Quantum of mesne profits is a question of fact - The High Court in revisional jurisdiction will not interfere with findings of fact unless perverse or based on no evidence - The courts below considered valuation reports and evidence, and their determination of Rs. 2,50,000 per month is not shown to be perverse (Paras 15-18).
Issue of Consideration
Whether mesne profits can be directed to be paid from the date of filing of the suit in a suit under the Bombay Rent Act, and whether the quantum of mesne profits fixed by the courts below is excessive.
Final Decision
Both Civil Revision Applications are dismissed. The orders dated 3 March 2022 passed by the Appellate Bench of the Small Causes Court are upheld.
Law Points
- Mesne profits can be awarded from date of institution of suit even in Rent Act cases
- Mesne profits enquiry is in nature of execution and cannot go behind decree
- Quantum of mesne profits is a question of fact not revisable under Section 115 CPC
Case Details
2024 LawText (BOM) (8) 51
Civil Revision Application No. 269 of 2024 with Civil Revision Application No. 270 of 2024
Mr. Shriram S. Redij for Applicants, Mr. Mayur Khandeparkar a/w Mr. Sheroy M. Bodhanwalla, Ms. Sakshi Sharma and Mr. Akash Singh i/by M.S. Bodhanwalla & Co. for Respondent
Union of India through Defence Secretary, The Military Estate Officer, Mrs. Aarti Kant
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Nature of Litigation
Civil revision applications challenging orders determining mesne profits in a suit for recovery of possession under the Bombay Rent Act.
Remedy Sought
Applicants (Union of India) sought setting aside of the orders of the Small Causes Court and its Appellate Bench determining mesne profits at Rs. 2,50,000 per month from the date of filing of the suit.
Filing Reason
Applicants contended that mesne profits could not be awarded from the date of filing of the suit in a Rent Act case and that the quantum was excessive.
Previous Decisions
The Small Causes Court decreed the suit on 4 September 2000 and directed enquiry into mesne profits from the date of filing of the suit. On 9 May 2014, it fixed mesne profits at Rs. 2,00,000 per month from the date of suit till possession. The Appellate Bench on 3 March 2022 enhanced it to Rs. 2,50,000 per month and dismissed the Union's appeal.
Issues
Whether mesne profits can be directed to be paid from the date of filing of the suit in a suit under the Bombay Rent Act.
Whether the quantum of mesne profits fixed by the courts below is excessive and warrants interference in revisional jurisdiction.
Submissions/Arguments
Applicants argued that possession became wrongful only from the date of decree, so mesne profits should be from decree date, not suit date, relying on Atma Ram Properties (P) Ltd. v. Federal Motors (P) Ltd.
Respondent argued that the decree directing enquiry from suit date had attained finality and could not be challenged in mesne profits enquiry, and that quantum was based on evidence.
Ratio Decidendi
In a mesne profits enquiry under Order 20 Rule 12 CPC, the court acts in execution of the decree and cannot go behind the decree directing payment of mesne profits from the date of institution of the suit. The decree having attained finality, the objection that mesne profits should be from the date of decree cannot be raised. The quantum of mesne profits is a question of fact and the High Court in revisional jurisdiction under Section 115 CPC will not interfere unless the finding is perverse or based on no evidence.
Judgment Excerpts
The Court conducting enquiry into mesne profits acts in execution of the decree and cannot go behind the decree.
The decree having attained finality, the objection that mesne profits should be from the date of decree cannot be raised in mesne profits enquiry.
The quantum of mesne profits is a question of fact and the High Court in revisional jurisdiction will not interfere unless the finding is perverse or based on no evidence.
Procedural History
Suit filed in 1979 for possession under Bombay Rent Act. Decree passed on 4 September 2000 directing enquiry into mesne profits from date of suit. Mesne profits application filed in 2003. Small Causes Court fixed mesne profits at Rs. 2,00,000 per month on 9 May 2014. Cross appeals filed. Appellate Bench enhanced to Rs. 2,50,000 per month on 3 March 2022. Union of India filed civil revision applications in 2024. Delay condoned on 3 April 2024. Judgment pronounced on 5 August 2024.
Acts & Sections
- Code of Civil Procedure, 1908: Order 20 Rule 12, Section 115
- Bombay Rents, Hotel and Lodging House Rates Control Act, 1947:
