How to decide quantum of mesne profits or compensation for use and occupation of premises?

So far as the affidavit of the petitioner regarding the assessment of the quantum of mesne profits is concerned the instances given by the petitioner in the affidavit appear to be of no significance. It is not stated anywhere as to when these premises were leased out and as to when the rate of rent was fixed. But the law on the subject is that mesne profits or compensation for the use and occupation of the premises in dispute has to be assessed at the same rate at which the landlord would have been able to let out the premises on being vacated by the tenant. Therefore the instances which are old by decades of years will be of no help to arrive at this conclusion.

IN THE HIGH COURT OF PUNJAB AND HARYANA

Civil Misc. No. 15946-CII of 2005 in Civil Revision No. 3447 of 2001

Decided On: 24.05.2006

 Surinder Singh Vs. Dr. Davinder Mohan

Hon'ble Judges/Coram:

S.N. Aggarwal, J.

Citation: 2007(1) Civil court cases 009 P&H

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Whether unauthorised occupant is liable to deposit use and occupation charges during pendency of eviction proceeding?

As already observed, the word 'rent' in Order XVA CPC is not limited to the 'admitted' rent. In any event, it also envisages the Court determining an 'amount' payable towards either rent or future mesne profits. In the present case, after the termination of the tenancy, the Defendants continue to occupy the commercial property. The property, in which where they are running a restaurant, is located in a busy market area. The Defendants have not countered the documents placed on record by the Plaintiff to show that the current market rent for commercial property of a similar size in the area is more than Rs. 3 lakhs per month. The mere fact that the Plaintiff may have the title documents of the residential property of the Defendants cannot be said to constitute sufficient security for the purposes of Order XVA CPC. The object of this provision is to provide the landlord with some 'amount' for use and occupation of the property by the Defendant during the pendency of the litigation. Keeping these factors in view, the Court is of the opinion that pending the final decision in the suit, the Defendants should deposit towards use and occupation charges/falling within the meaning of the expression 'such amount' in Order XVA CPC, a sum of Rs. 1 lakh per month.

IN THE HIGH COURT OF DELHI

CS (OS) 1698 of 2011

Decided On: 03.12.2013

 Prem Lata Vs. Raghubir Rai and Ors.

Hon'ble Judges/Coram:

S. Muralidhar, J.

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Whether relationship of landlord and tenant is created by payment of compensation for use and occupation?

The payment of the money to Smt. Rat Kumari Soni by the Government was also not made as rent but it was paid as compensation for use and occupation under Section 70 of the Indian Contract Act. That being so in my opinion, no relationship of landlady and tenant exists between the parties.

Himachal Pradesh High Court

Smt. Rajkumari Soni vs State Of Himachal Pradesh on 1 June, 1971

Equivalent citations: AIR 1972 HP 1

Bench: M Beg, C R Thakur

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