Bombay High Court Upholds Enhanced Mesne Profits Court Rules in Favor of Decree-Holder, Increases Monthly Compensation for Prolonged Occupation


Summary of Judgement

The Bombay High Court dismissed the Union of India's Civil Revision Applications, which challenged the orders of the Appellate Bench of the Small Causes Court. The court upheld the enhanced mesne profits of ₹2,50,000 per month for the property occupied by the Union of India from July 29, 1979, to November 20, 2002. The Union of India's plea to limit mesne profits to the date of the decree was rejected, affirming that mesne profits are to be calculated from the date of the suit filing. The court also rejected objections regarding the quantum of mesne profits, considering the strategic location and size of the property in Mumbai.

1. Case Background:

  • The original suit (R.A.E. & R. Suit No. 1429/4857 of 1979) was filed by Dr. Sam Framrose Boyce against the Union of India for the recovery of possession of the Boyce Building located at Gowalia Tank Road, Mumbai.
  • The Small Causes Court decreed the suit on September 4, 2000, directing the Union of India to hand over the property to the plaintiff while dismissing the claim for arrears of rent.

2. Mesne Profits Dispute:

  • After the decree, the Small Causes Court ordered an inquiry into mesne profits from the date of the suit's filing.
  • The court initially set the mesne profits at ₹2,00,000 per month, later enhanced by the Appellate Bench to ₹2,50,000 per month.

3. Union of India's Appeal:

  • The Union of India filed Civil Revision Applications challenging the mesne profits calculation and its effective date, arguing that mesne profits should apply only from the date of the decree, not from the date of the suit filing.

4. Court's Ruling:

  • The court upheld the lower courts' decisions, affirming that mesne profits should be calculated from the date of the suit filing.
  • The court justified the mesne profits amount by considering the property's condition, location, and size, rejecting the Union's objections.

5. Significance of the Judgment:

  • This judgment reaffirms the principle that mesne profits are intended to compensate the rightful owner from the time the wrongful possession begins, not just from the date of the decree.
  • The ruling also emphasizes the importance of upholding court orders in the calculation of mesne profits and prevents re-litigation of established points.

The Judgement

Case Title: Union of India Ors. Versus Dr. Rustom Sam Boyce

Citation: 2024 LawText (BOM) (8) 51

Case Number: CIVIL REVISION APPPLICATION NO. 269 OF 2024 WITH CIVIL REVISION APPLICATION NO. 270 OF 2024

Date of Decision: 2024-08-05