Corporation Bank & Anr vs. Ram Kumar Sharma

Held

The High Court held that the learned Trial Court rightly awarded mesne profits at the rate of Rs. 130 per square foot for the period of unauthorized occupation from February 2017 to November 2017. The Court found that the plaintiff (respondent) had successfully proven the prevailing market rental rates in the vicinity by presenting various lease deeds and an MOU for properties in the area, which indicated rates ranging from Rs. 133 to Rs. 159 per square foot. The Court noted that the defendant (appellant) failed to produce any lease deeds of similarly situated premises to counter this evidence. The testimony of DW-2, who rented his property at Rs. 78 per square foot, was deemed less persuasive as his property was located further away and the suit premises were closer to the main market. The Court also referenced the principle from Rajesh Bansal & Anr. V. A. S. Rastogi, emphasizing that a tenant inducing a landlord to give premises on rent with an assurance to vacate, and then ignoring notices, must suffer the consequences. The calculation of Rs. 20,40,597/- as the principal rent amount payable by the defendant bank was upheld. No issue was expressly left undecided.

Facts

The appeal by Corporation Bank & Anr. challenges a judgment and decree dated 10.01.2018 by the learned Additional District Judge-05/South-West District, New Delhi. The suit filed by Ram Kumar Sharma for eviction, possession, mandatory injunction, and mesne profits was decreed for Rs. 20,40,597/- concerning the ground floor of a property in Najafgarh, Delhi. The dispute specifically concerns the amount of mesne profits/charges for the period between 29.01.2017 and 30.11.2017, a period of ten months after the lease expired on 27.01.2017. The appellant bank alleged the respondent delayed lease renewal negotiations, while the respondent claimed a letter agreeing to a reduced rent was unauthorized. The trial court awarded mesne profits at Rs. 130/- per square foot.

Key Issues

1. Whether the learned Trial Court erred in awarding monthly mesne profits at Rs. 130/- per square foot for the period of unauthorized occupation, considering the evidence presented by both parties? (Question of law and fact, turning on principles of determining mesne profits and assessment of evidence). Petitioner's Arguments: The appellant argued that the trial court wrongly granted mesne profits at Rs. 130/- per square foot. They relied on the testimony of DW-1 (Sr. Manager of the bank) and DW-2 (a new lessor who rented his property to the bank at Rs. 78 per square foot, including GST) to support their claim that the awarded rate was excessive. They also pointed to a letter dated 07.01.2017, allegedly from the respondent's son, proposing renewal at Rs. 105 per square foot. Respondent's Arguments: The respondent contended that the trial court correctly awarded mesne profits at Rs. 130 per square foot. They presented evidence, including lease deeds and a Memorandum of Understanding for properties in the vicinity, showing prevailing rental rates ranging from Rs. 133 to Rs. 159 per square foot. The respondent also argued that the letter from his son was unauthorized and not binding. The respondent relied on his legal notice dated 16.11.2016, which demanded renewal at Rs. 130 per square foot.