MOHIT SURESH HARCHANDRAI & ORS. versus HINDUSTAN ORGANIC CHEMICALS LIMITED

Citation: [2025] 5 S.C.R. 764 · Decided: 06-05-2025 · Supreme Court of India · Bench: SANJAY KAROL · Disposal: Disposed off
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Judgment (excerpt)

[2025] 5 S.C.R. 764 : 2025 INSC 812
Mohit Suresh Harchandrai & Ors. 
v. 
Hindustan Organic Chemicals Limited
(Civil Appeal No. 7188 of 2025)
06 May 2025
[Sanjay Karol* and Manoj Misra, JJ.]
Issue for Consideration
The crux of the dispute is the ‘per square foot rate’ at which the 
mesne profit is to be calculated in connection with Hindustan 
Organic Chemicals Ltd.’s (HOCL) occupation, as ‘tenant’. The High 
Court held that application of uniform rate of Rs. 160/- per sq.ft. 
per month with the rate of interest payable at 8% p.a. would be 
appropriate in the facts and circumstances of the present case.
Headnotes†
Mesne Profit – Calculation of – The tenant originally entered 
into the demised premises and 2nd floor thereof, totalling 
7825 Sq.ft built-up area, as a lessor having leased it from the 
landowners for 3 years, i.e., 01.04.1962 to 31.03.1966 – In the 
year 2000, the landlord filed a suit for eviction and recovery of 
possession – After various rounds of litigation, the property 
was vacated and possession handed over on 23.04.2014 – As 
regards the payment of mesne profit, the High Court held that 
application of uniform rate of Rs. 160/- per sq.ft. per month 
would be appropriate in the facts and circumstances of the 
case – Correctness: 
Held: In the instant case, an order for ejectment has been passed 
against the tenant – The tenant, therefore, had no right to continue 
in the possession and enjoyment of the property – Entitlement to 
mesne profits is thus clearly established – There is no reason to 
interfere with the finding arrived at by the High Court – Considering 
the totality of the circumstances, while not interfering with the 
overall conclusion of the High Court, this Court finds it fit to reduce 
the rate of interest payable to 6% (simple in nature, per annum) 
instead of the 8% as awarded by the High Court. [Paras 11, 12]
* Author
[2025] 5 S.C.R. 
765
Mohit Suresh Harchandrai & Ors, v. 
Hindustan Organic Chemicals Limited
Maharashtra Rent Control Act 1999 – s.3 – HOCL-tenant 
vacated the premises after landlord filed a suit for eviction 
and recovery of possession – The High Court observed that 
if it was not for the protection to Public Sector Undertakings 
being removed as per s.3 of the Maharashtra Rent Control 
Act 1999, the tenant would have continued to occupy the 
premises – Correctness:
Held: It was in fact the landlord who had sent the notice for 
termination of the tenancy – That apart, being the Government, 
does not entitle a tenant to any extra consideration – Similarly, a 
PSU, even though substantially owned by the Government, stands 
on the same footing as any other tenant and cannot be given any 
special treatment. [Para 11]
Eviction Proceedings – Landlord-tenant disputes – Long period 
of pendency – Duty of Court:
Held: When it comes to landlord-tenant disputes, there is an angle 
of being deprived of the enjoyment of the property and also the 
monetary benefits that accrue from owning such property – The 
courts, being the courts of law and justice, are duty-bound to ensure 
that on their account, no party is made to suffer – In these kinds 
of disputes delayed adjudication means that both parties bear the 
brunt – The landlord suffers on account of not receiving, in some 
cases, the property itself, and in other cases, the monetary dues 
therefrom; and the tenant suffers on account of being directed to 
pay large sums of money within a short period of time when the 
matter is finally decreed – Even though the payment arises out of 
an obligation, making the requisite arrangements to pay the same is 
still an arduous task – Keeping in view the same, the Chief Justice 
of the High Court of Bombay directed to take appropriate steps 
or issue directions to further the cause of expeditious disposal of 
these cases. [Para 13]
Case Law Cited
Bijoy Kumar Manish Kumar (HUF) v. Ashvin Bhanulal Desai [2024] 
5 SCR 859 : (2024) 8 SCC 668 – referred to.
List of Acts
Maharashtra Rent Control Act, 1999.
766
[2025] 5 S.C.R.
Supreme Court Reports
List of Keywords
Mesne Profit; Order for ejectment; Eviction Proceedings; Landlord-
tenant disputes; Long period of pendency; Duty of Court; Enjoyment 
of the property; Monetary benefits.
Case Arising From
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 7188 of 2025
From the Judgment and Order dated 04.12.2024 of the High Court 
of Judicature at Bombay in WP No. 16741 of 2024
With
Civil Appeal No(s). 7189-7190 of 2025
Appearances for Parties
Adv
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