Supreme Court Dismisses Appeals Challenging Mesne Profits in Rent Control Case — Upholds High Court's Order. The High Court's order fixing mesne profits at Rs.2,50,000 per month was justified as the proceedings were governed by the Old Act, and the determination reflected the market conditions.

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Case Note & Summary

The dispute involved a suit for eviction, possession, recovery of rent, and permanent injunction filed by the plaintiffs, who owned a property in Jaipur, against the appellants, who were tenants. The suit was initiated in November 2002 under the Rajasthan Premises (Control of Rent and Eviction) Act, 1950, and was decreed in June 2016. The appellants challenged the decree, leading to a series of appeals, including a second appeal admitted by the High Court in October 2017, which granted a stay on ejectment. The plaintiffs sought mesne profits due to the stay, which the High Court ordered at Rs.2,50,000 per month. The appellants contended that this amount was excessive and should be limited to three times the standard rent as per the Rajasthan Rent Control Act, 2001. The plaintiffs argued that the New Act did not apply to proceedings initiated under the Old Act. The Supreme Court analyzed the applicability of the New Act and concluded that since the suit was pending before the commencement of the New Act, the provisions of the Old Act continued to govern the proceedings. The court upheld the High Court's order on mesne profits, stating that it was reasonable and justified based on the property's location and the delay in execution of the eviction decree. The appeals were dismissed, affirming the High Court's decisions.

Headnote

A) Rent Control - Mesne Profits - Determination of Mesne Profits - Rajasthan Premises (Control of Rent and Eviction) Act, 1950 - The High Court's determination of mesne profits at Rs.2,50,000 per month was upheld as just and reasonable, considering the location and nature of the property, and the delay in execution of the eviction decree. The court emphasized that the determination of mesne profits should reflect the market rent and the circumstances of the case (Paras 10-12).

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Issue of Consideration

Whether the High Court's order fixing mesne profits at Rs.2,50,000 per month was justified under the applicable laws.

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Final Decision

The Supreme Court dismissed both appeals, affirming the High Court's order fixing mesne profits at Rs.2,50,000 per month and the order passed on the review petition.

Law Points

  • mesne profits
  • eviction
  • standard rent
  • Rajasthan Premises (Control of Rent and Eviction) Act
  • 1950
  • Rajasthan Rent Control Act
  • 2001
  • Code of Civil Procedure
  • 1908
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Case Details

2022 LawText (SC) (07) 236

Civil Appeal Nos. 464647 of 2022

2022-07-06

J.K. Maheshwari, Indira Banerjee

M/s. Martin & Harris Private Limited & Anr.

Rajendra Mehta & Ors.

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Nature of Litigation

Civil suit for eviction, possession, recovery of rent, and permanent injunction.

Remedy Sought

Plaintiffs sought eviction and mesne profits from the appellants.

Filing Reason

The plaintiffs filed the suit under the Old Act for eviction and recovery of rent.

Previous Decisions

The suit was decreed in favor of the plaintiffs, confirmed by the appellate court, and a second appeal was pending.

Issues

Whether the High Court's order fixing mesne profits was justified under the applicable laws. Whether the provisions of the New Act applied to the proceedings initiated under the Old Act.

Submissions/Arguments

Appellants argued that mesne profits should be limited to three times the standard rent as per the New Act. Respondents contended that the New Act did not apply to proceedings initiated under the Old Act.

Ratio Decidendi

The court held that the proceedings initiated under the Old Act continued to be governed by its provisions, and the High Court's determination of mesne profits was reasonable and just, reflecting the market conditions.

Judgment Excerpts

The High Court's determination of mesne profits at Rs.2,50,000 per month was upheld as just and reasonable. The suit or proceedings, if any, pending on the date of notification issued by the State Government for applicability of the New Act such proceedings would continue under the Old Act.

Procedural History

The suit was filed in November 2002, decreed in June 2016, and the appeals followed, including a second appeal admitted in October 2017. The High Court ordered mesne profits in May 2018, which was challenged and led to the current appeals.

Acts & Sections

  • Rajasthan Premises (Control of Rent and Eviction) Act, 1950: Section 13
  • Rajasthan Rent Control Act, 2001: Section 20, Section 32
  • Code of Civil Procedure, 1908: Order XLI Rule 5, Section 151
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