Supreme Court Modifies Consent Decree on Mesne Profits and Directs Handover of Possession. The Court rectified the terms of the consent decree regarding mesne profits to reflect a 10% increase every alternate year and directed the Petitioner to hand over possession of the entire suit property to the Respondent.

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Case Note & Summary

The case arose from a suit for possession and mesne profits filed by the Respondent against the Petitioner concerning a property in Delhi. The Respondent, Beant Singh, owned the property and had executed a series of license agreements with the Petitioner’s predecessor, which allowed the Petitioner to occupy the property for specified periods. After the last agreement expired in 2008, the Respondent sought recovery of possession and mesne profits due to the Petitioner’s continued occupation. The Trial Court ruled in favor of the Respondent, leading to cross-appeals in the High Court. The High Court issued a consent decree, which the Petitioner later contested, claiming errors in the terms regarding mesne profits and possession. The Supreme Court analyzed the legal principles surrounding consent decrees, emphasizing their binding nature and the limited grounds for modification. The Court found that the High Court had erred in recording the terms of the consent decree, specifically regarding the frequency of the increase in mesne profits. The Court rectified this to reflect a 10% increase every alternate year. Additionally, the Court directed the Petitioner to vacate the property and hand over possession to the Respondent, criticizing the Petitioner for its failure to comply with previous court orders. The Court concluded by ordering the Petitioner to pay costs and all arrears of mesne profits as per the modified decree.

Headnote

A) Civil Procedure - Consent Decree - Modification of Terms - Code of Civil Procedure, 1908 - The Supreme Court held that the terms of the consent decree regarding mesne profits were recorded incorrectly, necessitating modification to reflect a 10% increase every alternate year instead of annually. The Court emphasized the importance of adhering to the original intent of the compromise and rectified the decree accordingly (Paras 27-29).

B) Possession - Delivery of Possession - Code of Civil Procedure, 1908 - The Court directed the Petitioner to hand over possession of the entire suit property to the Respondent within eight weeks, highlighting the Petitioner’s disregard for previous court orders and the finality of the High Court’s judgment (Paras 30-31).

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Issue of Consideration

Whether the High Court erred in recording the terms of the consent decree regarding mesne profits and possession.

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Final Decision

The Supreme Court modified the consent decree to reflect a 10% increase in mesne profits every alternate year and directed the Petitioner to hand over possession of the entire suit property to the Respondent within eight weeks. The Petitioner was also ordered to pay costs and all arrears of mesne profits as per the modified decree.

Law Points

  • Consent decree
  • mesne profits
  • possession
  • Code of Civil Procedure
  • 1908
  • Article 227
  • inherent powers
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Case Details

2021 LawText (SC) (02) 227

Special Leave Petition (Civil) Nos. 22242-22225 of 2021

2021-02-17

MOHAN M. SHANTANAGOUDAR, VINEET SARAN

Mukul Rohatgi, Basava Prabhu S. Patil

COMPACK ENTERPRISES INDIA (P) LTD.

BEANT SINGH

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Nature of Litigation

Suit for possession and mesne profits

Remedy Sought

Respondent sought possession of the suit property and mesne profits

Filing Reason

Petitioner continued to occupy the property after the license agreement expired

Previous Decisions

High Court had previously decreed possession in favor of the Respondent

Issues

Validity of consent decree terms Delivery of possession

Submissions/Arguments

Petitioner argued for a 10% increase in mesne profits every 24 months Respondent contended for a 10% increase every 12 months

Ratio Decidendi

Consent decrees create estoppels by judgment and should not be modified without the consent of all parties unless there is an error apparent on the face of the record.

Judgment Excerpts

The High Court passed a consent decree, directing that the Petitioner shall pay to the Respondent, by way of mesne profits, an enhanced sum of Rs.1,00,000/ p.m. The Court directed the Petitioner to take steps for handing over possession of the suit property measuring 5,472 sq. ft. to the Respondent within eight weeks from today.

Procedural History

The Petitioner filed a regular first appeal against the Trial Court's judgment, which was disposed of by the High Court. Subsequently, the Petitioner filed a review petition against the High Court's judgment, which was also dismissed.

Acts & Sections

  • Code of Civil Procedure, 1908: Order XII, Rule 6
  • Constitution of India: Article 227
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