MOHIT SURESH HARCHANDRAI & ORS. versus HINDUSTAN ORGANIC CHEMICALS LIMITED

MOHIT SURESH HARCHANDRAI & ORS. versus HINDUSTAN ORGANIC CHEMICALS LIMITED

An order for ejectment establishes the tenant's liability to pay mesne profits; the High Court's uniform mesne profit rate of Rs.160 per sq.ft. per month for the period of occupation is appropriate on the facts of this case, but the rate of interest awarded by the High Court is reduced to 6% per annum (simple) and the entire sum is to be paid within three months.

Parties
Appellants / Landlords: Mohit Suresh Harchandrai & Ors.; Respondent / Tenant: Hindustan Organic Chemicals Limited
Jurisdiction
India
Judgment Date
06 May 2025
Procedural Posture
Civil Appeal / Cross Appeals Against High Court Judgment; Disposed by Supreme Court Order
Outcome
Civil Appeals disposed of.
Legal Topics
Mesne Profit, Eviction Proceedings, Interest on Mesne Profits, Delay and Pendency in Landlord Tenant Disputes, Maharashtra Rent Control Act 1999 S.3
Property Law Landlord Tenant Law Civil Procedure Rent Control Law Mesne Profit Eviction Proceedings Interest on Mesne Profits Delay and Pendency in Landlord Tenant Disputes +1 more

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Parties

Mohit Suresh Harchandrai & Ors.

Appellants / Landlords

Hindustan Organic Chemicals Limited

Respondent / Tenant

Procedural Posture

Civil Appeal / Cross Appeals Against High Court Judgment; Disposed by Supreme Court Order

Legal Issues

  1. 1 Determination of per square foot rate for mesne profits
  2. 2 Whether a Public Sector Undertaking is entitled to special treatment in mesne profit/eviction proceedings
  3. 3 Appropriate rate of interest on mesne profits

Ratio Decidendi

An order for ejectment establishes the tenant's liability to pay mesne profits; the High Court's uniform mesne profit rate of Rs.160 per sq.ft. per month for the period of occupation is appropriate on the facts of this case, but the rate of interest awarded by the High Court is reduced to 6% per annum (simple) and the entire sum is to be paid within three months.

Court Disposition

Civil Appeals disposed of.

Orders

  • High Court's conclusion to apply a uniform mesne profit rate of Rs.160 per sq.ft. per month upheld
  • Rate of interest on the mesne profits reduced to 6% per annum (simple) instead of 8%