Case Note & Summary
The petitioners, tenants of a 400 square feet premises in a building over 80 years old at Matunga, challenged an order dated 21 November 2017 passed by the Appeal Court. The Appeal Court had directed them to deposit compensation of Rs. 34,000 per month from the date of the eviction decree (21 September 2016) as a condition for granting interim relief staying execution of the eviction decree. The petitioners argued that the suit premises lacked modern amenities like 24-hour water supply and lift, and could not be compared to premises in new high-rise buildings with modern amenities. They contended that mesne profits should not exceed Rs. 1,000 per month, but without prejudice offered to pay Rs. 8,000 to 10,000 per month. The respondent landlord relied on a leave and license agreement for comparable premises. The High Court, after hearing both sides, found the amount of Rs. 34,000 per month to be on the higher side. Considering the nature and location of the premises, the court modified the condition, directing the petitioners to deposit Rs. 10,000 per month as compensation from the date of the eviction decree (21 September 2016). The arrears from September 2016 to November 2018 were to be deposited in four equal monthly installments starting from 1 December 2018, and future compensation was to be paid by the 10th of each month. The court clarified that this order was without prejudice to the rights and contentions of both parties and that the trial court would decide the quantum of mesne profits independently.
Headnote
A) Civil Procedure - Mesne Profits - Interim Stay Condition - Section 144 CPC, Order 41 Rule 5 CPC - The Appeal Court directed tenant to deposit Rs. 34,000 per month as compensation from the date of eviction decree as a condition for stay of execution. The High Court found the amount excessive considering the nature of the suit premises (400 sq ft, old building, no lift, no 24-hour water supply) and modified it to Rs. 10,000 per month from the date of the eviction decree, payable from November 2018. (Paras 2-4)
Issue of Consideration
Whether the Appeal Court's direction to deposit compensation of Rs. 34,000 per month from the date of eviction decree as a condition for stay of execution is excessive and requires modification.
Final Decision
The High Court modified the condition, directing the petitioners to deposit Rs. 10,000 per month as compensation from the date of eviction decree (21 September 2016). Arrears from September 2016 to November 2018 to be deposited in four equal monthly installments starting 1 December 2018. Future compensation to be paid by 10th of each month. The order is without prejudice to rights and contentions of parties, and the trial court to decide mesne profits independently.
Law Points
- Mesne profits
- compensation for use and occupation
- interim stay condition
- tenant's appeal
- eviction decree
