Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Mesne profit |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Mesne profit – Compensation for use and occupation of the premises by the tenant – Leased property is situated in Worli area of Mumbai at a very prominent place – Suit for eviction – Trial court dismissed suit – Appellate Bench of Small Causes Court, however, ordered eviction – Revision before High Court – During pendency of revision before High Court, Sumer Corporation applied for impleadment and was added as respondent no. 19 – Respondent no. 19 was claiming to have right, title and interest in the suit property (lease) pursuant to the deed of conveyance executed in the year 2008 for a sale consideration of Rs. 5.50 crores – By impugned order, while admitting the revision application and while staying the eviction decree passed by the Appellate Bench, the High Court inter alia directed the original revisionist to deposit Rs. 2,50,000/- per month towards compensation as a condition of stay – Original Respondent no. 19 filed instant appeal – Held: The approach adopted by the High Court is not a sound principle of law to form the basis for determining the compensation in this case – While determining the monthly compensation, High Court considered the fair rate of return @ 6.5% annually on the amount for which the appellant purchased the property in the year 2008, i.e., Rs. 5.50 crores – The aforesaid could not have been the basis while determining the monthly compensation – If the approach adopted by the High Court is accepted and/or approved, in a given case, it may happen that the lessor might have purchased the property forty years back and/or long back and if the said approach is considered and thereafter the monthly compensation is determined, the same cannot be said to be a reasonable compensation – Matter remitted to High Court for fresh determination of compensation for use and occupation of the premises by the tenant. |
Judge | Hon'ble Mr. Justice M.R. Shah |
Neutral Citation | 2022 INSC 1188 |
Petitioner | Sumer Corporation |
Respondent | Vijay Anant Gangan & Ors. |
SCR | [2022] 9 S.C.R. 690 |
Judgement Date | 2022-11-09 |
Case Number | 7774 |
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