Case Note & Summary
The appellant, Bandekar Brothers Pvt. Ltd., challenged the judgment and decree dated 16.04.2009 passed in Special Civil Suit No.62/1996 by the trial court. The respondent, Damodar Mangalji & Co. Ltd., had filed the suit for delivery of possession and mesne profits in respect of an area of 24218 square metres of property surveyed under Nos. 15 and 16 of Village Kotombi. The trial court partly decreed the suit, directing the appellant to hand over vacant possession and pay mesne profits at Rs.10,000/- per year from 01.01.1995 until delivery of possession, with interest at 18% per annum, and also granted a permanent injunction restraining the appellant from using the said area. The appellant contended that the rate of interest on mesne profits was excessive and should be reduced. The High Court, after hearing both sides, held that the mesne profits were not quantified at the time of decree and the contractual rate of interest was not applicable. The court reduced the interest rate from 18% per annum to 6% per annum from the date of suit till realization, while confirming the rest of the decree. The appeal was partly allowed.
Headnote
A) Civil Procedure - Mesne Profits - Interest Rate - Section 2(12) CPC, Section 34 CPC - The court considered whether the rate of interest on mesne profits should be 18% per annum as awarded by the trial court. The High Court held that the interest rate should be reduced to 6% per annum from the date of suit till realization, as the mesne profits were not quantified at the time of decree and the contractual rate of interest was not applicable. (Paras 5-8) B) Property Law - Lease - Sub-lease - Perpetual Lease - The dispute involved a perpetual lease of 22,250 sq m executed on 16.12.1974 and a sub-lease of approximately 25,000 sq m for five years with renewals. The sub-lease expired by efflux of time in 1994, leading to the suit for possession and mesne profits. (Paras 3-4)
Issue of Consideration
Whether the trial court was justified in awarding mesne profits at the rate of Rs.10,000/- per year with interest at 18% per annum from 01.01.1995 until delivery of possession.
Final Decision
Appeal partly allowed. The judgment and decree of the trial court is modified to the extent that the interest on mesne profits shall be at 6% per annum from the date of suit till realization instead of 18% per annum. The rest of the decree is confirmed.
Law Points
- Mesne profits
- Lease
- Sub-lease
- Perpetual lease
- Interest rate
- Section 2(12) CPC
- Section 34 CPC
