Court Orders Tenant at Sufferance to Pay Mesne Profits and Deposit Significant Sum. Tenant must compensate for continued possession post-lease expiry and comply with court directives pending final judgment.


Summary of Judgement

The court judgment addresses the issue of mesne profits owed by a tenant at sufferance who continued to occupy the property after the lease expired due to non-payment of rent. The court ordered the tenant to pay mesne profits at a market rate and deposit a significant sum with the Registry, pending the final outcome of the Special Leave Petitions. The judgment references past cases and guidelines on reasonable rent practices and outlines directives for compliance and future hearings.

1. Court Observations on Lease Expiry and Mesne Profits

  • Lease Expiry and Mesne Profits: The court noted that mesne profits are payable when a tenant continues possession after lease expiry, determination, forfeiture, or termination, weakening the tenant's rights.
  • Thesaurus Definitions: Terms like 'expire,' 'determine,' 'forfeiture,' and 'terminate' indicate the end of a lease, necessitating mesne profits.

2. Court's Prima Facie View and Order for Deposit

  • Nature of Lease Dispute: The lease's status is contested, affecting payment obligations.
  • Location and Rental Deprivation: The property is in Kolkata, and the petitioner claims significant rent deprivation.
  • Order for Deposit: The respondent must deposit Rs. 5,15,05,512 with the Registry within four weeks, pending the final decision on the Special Leave Petitions.

3. Reference to Past Judgements and Guidelines

  • Martin and Harris & Mohammad Ahmed Cases: The court referenced past cases, emphasizing:
    • Rent Enhancement: Tenants should increase rent according to agreements or by 10% every three years.
    • Market Rate Rent: Rents significantly below market rate should be updated.
    • Payment of Additional Charges: Tenants should cover property tax, water tax, maintenance, and electricity charges.
    • Eviction Immunity: Tenants paying market rent should have eviction immunity for five years.
    • Fair Rental Assessment: Rent should consider location, construction type, and facilities.

4. Interim Orders and Compliance

  • Pending Special Leave Petitions: Directions are subject to the final outcome of the petitions.
  • Deposit Compliance: The respondent must deposit the required amount within four weeks and file a compliance affidavit, facing legal consequences for non-compliance.

5. Disposition of Related Applications

  • Similar Interlocutory Applications: Related applications are disposed of on the same terms.

6. Next Hearing Date

  • Future Hearing: Special Leave Petitions are scheduled for a hearing in July 2024.

Case Title: Bijay Kumar Manish Kumar HUF Versus Ashwin Bhanulal Desai

Citation: 2024 LawText (SC) (5) 174

Case Number: [I.A. No. 120219/2020] [Special Leave Petition (C) No. 4049 of 2020] [I.A. No. 120227/2020 in SLP(C) No. 4050/2020] [I.A. No. 120235/2020 in SLP(C) No. 4051/2020] [I.A. No. 120248/2020 in SLP(C) No. 4052/2020]

Date of Decision: 2024-05-17