High Court Dismisses Applicant Application for Market Rent Deposit Against Respondents in Civil Revision -- Stay of Eviction Decree Maintained Without Additional Conditions

Sub Category: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The High Court dismissed the landlord's interim application seeking deposit of market rent from October 2007 during the pendency of a civil revision application against an eviction decree. The Court acknowledged the legal principle from Atma Ram Properties that appellate courts can impose terms for compensation under Order 41 Rule 5 of CPC, and tenants may be liable for mesne profits at market rates post-decree. However, it found that the landlord's application, filed in 2023 for relief dating back to 2007, was delayed and sought to modify an interim order without showing changed circumstances. Relying on precedent like Sulochana Jadhav, the Court held no case was made out for relief, dismissed the application, and directed the civil revision application to be listed for final hearing.

Headnote

The High Court of Judicature at Bombay, in its Civil Appellate Jurisdiction, heard an interim application (IA No. 13541 of 2023) in Civil Revision Application No. 432 of 2008 -- The applicant/landlord, sought deposit of market rent at Rs.5,55,000 per month from October 2007 -- The respondent/tenants, opposed the application -- The Court referred to legal principles from Supreme Court judgment in Atma Ram Properties, which held that appellate courts can impose reasonable terms to compensate decree-holders for delay due to stay orders under Order 41 Rule 5 of Code of Civil Procedure, 1908 (CPC) -- The Court noted that after an eviction decree, tenants are liable to pay mesne profits at market rates from the decree date -- However, the Court distinguished this case based on procedural history and delay -- The civil revision application was admitted on 23 June, 2010, and the landlord filed this application in 2023, seeking relief from 2007 -- The Court cited its own judgment in Sulochana Jadhav case, where similar applications filed years after admission were rejected as no change in circumstances was shown -- The Court held that granting relief would amount to modifying an interim order granted after hearing both parties, and no case was made out -- The interim application was dismissed, and the civil revision application was directed to be listed for final hearing

Issue of Consideration: The Issue of whether the landlord is entitled to deposit of market rent from October 2007 during pendency of civil revision application against eviction decree

Final Decision

The High Court dismissed the interim application (IA No. 13541 of 2023), holding no case was made out for deposit of market rent, and directed the civil revision application to be listed for final hearing

2026 LawText (BOM) (02) 33

Interim Application No. 13541 of 2023 in Civil Revision Application No. 432 of 2008

2026-02-04

Rajesh S. Patil J.

2026:BHC-AS:6269

Adv. S. R. Page, Adv. Amey Borwankar

M/s. Bharat Petroleum Corporation Ltd.

Balasaheb Hiralal Zad & Anr.

Nature of Litigation: Civil revision application against eviction decree with interim application for deposit of market rent

Remedy Sought

Landlord sought deposit of market rent at Rs.5,55,000 per month from October 2007 during pendency of civil revision application

Filing Reason

Landlord claimed compensation for delay in execution of eviction decree due to stay granted in civil revision application

Previous Decisions

Civil revision application admitted on 23 June, 2010; interim relief previously granted after hearing both parties

Issues

Whether the landlord is entitled to deposit of market rent from October 2007 during pendency of civil revision application against eviction decree Whether the appellate court can impose terms for compensation under Order 41 Rule 5 of CPC in such circumstances

Submissions/Arguments

Landlord argued based on Atma Ram Properties judgment that tenant should pay market rent post-decree as mesne profits Tenants likely opposed application citing delay and lack of changed circumstances

Ratio Decidendi

Appellate courts have jurisdiction under Order 41 Rule 5 of CPC to impose reasonable terms for stay of eviction decrees to compensate decree-holders, but such relief must be sought promptly and not to modify existing interim orders without showing changed circumstances

Judgment Excerpts

"while passing an order of stay under Rule 5 of Order 41 of the Code of Civil Procedure, 1908, the appellate Court does have jurisdiction to put the applicant on such reasonable terms as would in its opinion reasonably compensate the decree-holder for loss occasioned by delay in execution of decree by the grant of stay order" "the tenant is liable to pay mesne profits or compensation for use and occupation of the premises at the same rate at which the landlord would have been able to let out the premises and earn rent if the tenant would have vacated the premises"

Procedural History

Eviction decree passed earlier; civil revision application filed by tenant and admitted on 23 June, 2010; interim application filed by landlord in 2023 seeking deposit from October 2007; heard on 4 February, 2026 and dismissed

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