M/S. MARTIN & HARRIS PRIVATE LIMITED & ANR. versus RAJENDRA MEHTA & ORS.

Citation: [2022] 16 S.C.R. 38 · Decided: 06-07-2022 · Supreme Court of India · Bench: INDIRA BANERJEE · Disposal: Dismissed

Cited by 2 judgment(s) · cites 2 · see the full citation network in Lexace

Judgment (excerpt)

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SUPREME COURT REPORTS
[2022] 16 S.C.R.
M/S. MARTIN & HARRIS PRIVATE LIMITED & ANR.
v.
RAJENDRA MEHTA & ORS.
(Civil Appeal Nos. 4646-47 of 2022)
JULY 06, 2022
[INDIRA BANERJEE AND J. K. MAHESHWARI, JJ.]
Rajasthan Rent Control Act, 2001 – ss.20, 32 – Rajasthan
Premises (Control of Rent and Eviction) Act, 1950 (Old Act) – Suit
or proceedings initiated under the Old Act, pending on the date of
commencement of the New Act (2001 Act) – Grant of mesne profits –
s.20 of the New Act, if applicable – Held: s.20 deals with the
execution of the orders of the Rent Tribunal in the manner so
prescribed – Sub-sec. (3) makes it clear that if the tenant does not
vacate premises within three months of the date of issue of certificate
for recovery of the possession, in that event he is liable to pay mesne
profits at the rate of three times the rent in case the premises is let
out for commercial purposes, as applicable in the facts of the present
case – Further, sub-sec.(3) of s.32 (Repeal and savings) has been
given overriding effect by which the applications or suit or other
proceedings filed under the Old Act pending on the date of
commencement of the New Act before any Court shall be continued
and disposed of in accordance with the provisions of the Old Act as
the Old Act had continued in force and the New Act had not been
enacted – Thus, the suit or proceedings, if any, pending on the date
of notification issued for applicability of the New Act, such
proceedings would continue under the Old Act and New Act has no
application – Therefore, High Court rightly rejected the contention
of the appellant that maximum payable mesne profits u/s.20 of the
New Act can be three times of the rent in case the premises is let out
for commercial purposes, while dismissing the review petition – It
rightly held that s.20, by which three times mesne profits to the
standard rent was made permissible for the suit or proceedings
started under the New Act, has no application in suit or proceedings
initiated under the Old Act and pending on the date of
commencement of the New Act – Reasoning given is in consonance
to the spirit of s.32 of the New Act – Further, the amount of mesne
[2022] 16 S.C.R. 38
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profits has also been rightly decided by the High Court – Order of
High Court does not warrant any interference.
Rent Control and Eviction – Decree of eviction – Entitlement
of landlord to mesne profits – Held: After passing of the decree of
eviction the tenancy terminates and from the said date the landlord
is entitled for mesne profits or compensation depriving him from the
use of the premises. 
Rent Control and Eviction – Determination of mesne profit –
Basis of – Discussed.
Dismissing the appeals, the Court
HELD: 1.1 The previous proceedings bearing No.61 of
2002 filed under Sections 6 and 7 was under the Old Act, wherein
the standard rent was fixed Rs.45,000/- per month to the suit
property. During those proceedings, the present suit seeking
decree of eviction was filed by Plaintiffs under the provisions of
Old Act in November 2002 prior to commencement of the New
Act. Thus, on the date of commencement of the New Act, the
present suit was pending and vide judgment dated 03.06.2016
Trial Court decreed the suit, which was confirmed in appeal by
Lower Appellate Court on 10.01.2017. Challenging the judgment
and decree concurrently passed by the two Courts, Second Appeal
No.144/2017 has been filed by the Appellants, which has been
admitted on 14.10.2017 and stay of ejectment passed by the High
Court which was extended quite a few times. Thereafter, on filing
an application under Order XLI Rule 5 read with Section 151 of
CPC asking mesne profits by Plaintiffs, it was allowed vide order
dated 18.05.2018. Against which the Special Leave Petition
bearing No.19863/2018 filed by Appellants was dismissed as
withdrawn with liberty to file a review petition after noting the
submissions made before this Court. On perusal of the order
dated 06.08.2018, it is clear that the Appellants raised a plea that
maximum payable mesne profits as per Section 20 of the New
Act can be three times of the rent in case the premises let out for
commercial purposes. It was said that the standard rent was fixed
@ Rs.45,000/- per month as a result of which three times would
come to Rs.1,35,000/-, however, the direction of mesne profits
@ Rs.2,50,000/- per month by the High Court is unjust. This
M/S. MARTIN & HARRIS PRIVATE LIMITED & ANR. v.
RAJENDRA ME

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