VidhiSangh

Supreme Court of India · 06/07/2022

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

[2022] 16 S.C.R. 38 · 2022 INSC 663

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Summary

Landlords of commercial premises in New Colony, Jaipur obtained an eviction decree in a 2002 suit under the Rajasthan Premises (Control of Rent and Eviction) Act, 1950, affirmed in first appeal. In the tenants' second appeal the Rajasthan High Court stayed ejectment and, on the landlords' application under Order XLI Rule 5 CPC, directed the tenants to pay mesne profits of Rs 2,50,000 per month during the appeal, with liberty to the landlords to withdraw on furnishing security. The tenants contended that Section 20 of the Rajasthan Rent Control Act, 2001 caps mesne profits for commercial premises at three times the standard rent of Rs 45,000. The Supreme Court dismissed the appeals. Under Section 32(3) of the 2001 Act, suits pending under the repealed Act on 01.04.2003 continue under the old Act, so Section 20 has no application, and the mesne profits fixed were just.

Issues

  1. Whether Section 20 of the Rajasthan Rent Control Act, 2001, limiting mesne profits to three times the rent for commercial premises, governs a suit filed under the repealed 1950 Act and pending when the new Act commenced.
  2. Whether an appellate court staying execution of an eviction decree may require the tenant to pay mesne profits at the market rate, and whether Rs 2,50,000 per month was justified.

Provisions considered

Held

Result

Appeals dismissed; the Rajasthan High Court's order of 18.05.2018 fixing mesne profits at Rs 2,50,000 per month and the order of 01.04.2019 dismissing the review petition upheld.

Judgment PDF: Supreme Court of India, [2022] 16 S.C.R. 38.