Bombay High Court Fixes Interim Compensation for Tenant Pending Eviction Revision — Mesne Profits Determined Based on Valuer Reports and Rental Market. Tenant Ordered to Pay Rs.25,000 Per Month as Interim Compensation Under Section 12 of Maharashtra Rent Control Act, 1999.

High Court: Bombay High Court Bench: BOMBAY
  • 86
Judgement Image
Font size:
Print

Case Note & Summary

The case involves a civil revision application filed by the tenant, Previn Govind Sharma, against an eviction decree passed by the Appellate Bench of the Small Cause Court, Mumbai, in favor of the landlords, who are trustees of the Zoroastrian Building Fund. The tenant occupies a flat in a building in Tardeo, Mumbai. The landlords initially filed Suit No.162 of 1996 in the City Civil Court, but the plaint was returned under Order VII Rule 10 CPC for lack of jurisdiction. They then filed RAE Suit No.141/260 of 2008, which was dismissed on 16 September 2013. The landlords appealed in Appeal No.124 of 2013, which was allowed on 6 October 2018, decreeing eviction. The tenant filed the present civil revision application and obtained an interim stay on 12 December 2018, subject to payment of Rs.25,000 per month as interim compensation. The court was tasked with fixing the final interim compensation pending the revision. Both parties submitted reports from government-approved valuers regarding mesne profits. The tenant argued that the compensation should be based on the contractual rent of Rs.1,500 per month, while the landlords sought market rent. The court, after considering the valuer reports and the location of the property, held that Rs.25,000 per month was a reasonable interim compensation, noting that the tenant had been in occupation for decades and the property was in a prime area. The court directed the tenant to continue paying this amount pending the revision application.

Headnote

A) Rent Control - Interim Compensation - Mesne Profits - Maharashtra Rent Control Act, 1999 - Section 12 - The court determined interim compensation pending eviction revision based on valuer reports and market rent, fixing Rs.25,000 per month as reasonable, considering the tenant's long occupation and the property's location. (Paras 2-6)

B) Civil Procedure - Return of Plaint - Order VII Rule 10 CPC - The landlords' initial suit was returned for want of jurisdiction, but they subsequently filed a proper suit, which was dismissed by the trial court but decreed in appeal. (Para 3)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

What is the appropriate interim compensation to be paid by the tenant to the landlords pending the civil revision application against the eviction decree?

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The court fixed Rs.25,000 per month as interim compensation to be paid by the tenant to the landlords pending the civil revision application, based on valuer reports and the property's location.

Law Points

  • Interim compensation
  • mesne profits
  • tenant eviction
  • stay order
  • Order VII Rule 10 CPC
  • Section 12 Maharashtra Rent Control Act
Subscribe to unlock Law Points Subscribe Now

Case Details

2019 LawText (BOM) (06) 76

Civil Revision Application (ST.) No.33250 of 2018

2019-06-21

Dama Seshadri Naidu

Mr. Amrut Joshi i/b. Mr. Sanket Mungale for the applicant; Mr. Foroze Bharuka i/b. Mr. Zarir B. Mogal for respondent nos.1 to 8

Previn Govind Sharma

Dinyar Jal Jamshedji and others (Trustees of Zoroastrian Building Fund)

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Civil revision application against eviction decree

Remedy Sought

Tenant seeks stay of eviction and reduction of interim compensation

Filing Reason

Tenant aggrieved by appellate court's eviction decree

Previous Decisions

Trial court dismissed suit on 16-09-2013; appellate court allowed appeal on 06-10-2018 decreeing eviction

Issues

What is the appropriate interim compensation to be paid by the tenant pending the civil revision application?

Submissions/Arguments

Tenant argues compensation should be based on contractual rent of Rs.1,500 per month Landlords argue for market rent based on valuer reports

Ratio Decidendi

Interim compensation pending eviction revision should be based on market rent as determined by valuer reports, not contractual rent, considering the property's location and the tenant's long occupation.

Judgment Excerpts

The tenant has filed this CRA and has had the Appellate Court's decree of eviction stayed. Based on the material either party placed on record, including the mesne profits reports prepared by the Government approved valuers, both the counsel have advanced their arguments.

Procedural History

Landlords filed Suit No.162 of 1996 in City Civil Court, plaint returned under Order VII Rule 10 CPC. Then filed RAE Suit No.141/260 of 2008, dismissed on 16-09-2013. Appeal No.124 of 2013 allowed on 06-10-2018 decreeing eviction. Tenant filed CRA No.33250 of 2018, obtained interim stay on 12-12-2018 subject to payment of Rs.25,000 per month.

Acts & Sections

  • Code of Civil Procedure, 1908 (CPC): Order VII Rule 10
  • Maharashtra Rent Control Act, 1999: Section 12
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court High Court of Bombay Dismisses Union of India's Challenge to Arbitral Award in Naval Dockyard Contract Dispute. Court upholds arbitrator's findings on extra work and escalation claims as plausible and not perverse under Section 34 of Arbitration and ...
Related Judgement
High Court Bombay High Court Partially Allows Land Owner's Appeal and Dismisses State's Appeal in Land Acquisition Compensation Case — Market Value Assessed at Rs. 5 per sq. ft. with 25% Development Deduction. Severance Damages Upheld for Un-cultivable Small ...