Smt. Shanti Devi and Others vs United Bank of India

Valmiki J. Mehta, J

This is a suit filed by the plaintiffs/landlords for possession and mesne profits with respect to tenanted premises being the ground floor (1838 sq. ft) and basement (2362 sq. ft.) situated at plot No.84, Nehru Place, New Delhi. The last paid rent for the tenanted premises from March, 1993 was at Rs. 36,458.52/-. The tenancy was terminated by means of a notice dated 9.3.2001 with effect from 1.4.2001. The suit premises were vacated during the pendency of the suit on 10.8.2002. This Court is therefore only called upon to decide the rate of mesne profits payable w.e.f. 1.4.2001 to 10.8.2002. It is not disputed on behalf of the defendant that the notice dated 9.3.2001 was served upon it terminating the tenancy w.e.f. 1.4.2001.

The following issues were framed in this suit on 12.1.2006:-

Whether the plaintiffs are entitled to Rs. 45, 41,230/- (minus Rs. 1093755.60p already paid) by way of damages/mesne profits/compensation for use and occupation of the demised premises for the period 1.4.2001 upto 14.3.2002? OPP

Whether the plaintiffs are entitled to damages/mesne profits/compensation for use and occupation w.e.f., 15.3.2002 to 10.8.2002 @ Rs. 3,50,000/- per month. OPP

Whether the plaintiffs are entitled to interest on rent w.e.f., on the rent due @ 15% p.a. OPP

Whether the plaintiffs entered into agreement waiving off their claims as pleaded in the written statement? OPD

To what relief/s the plaintiff is entitled to

Relief

Issue Nos.1 and 2

Learned counsel for the plaintiffs has relied upon Ex.P6, and which is a letter written by the defendant bank dated 31.10.1997 annexing therewith its letter dated 27.10.1997. The relevant portion of this letter dated 27.10.1997 reads as under:-

The Manager,

United Bank of India,

Nehru Place Branch

Dear Sir,

Reg:

Proposal for revision of Rent and Renewal of Lease Agreement of your Branch Premises and Sanction of Term Loan.

We are glad to inform you that Competent Authority of the Bank has approved the above proposal on the following terms and conditions:

Initial revised rent is fixed at Rs. 48.00 and Rs. 22.00 per sft/per month in respect of ground floor and basement area measuring 1838 sft and 2362 sft, respectively, under occupation of the Branch. The above revised rent is inclusive of all present and future rates, taxes and other out-goings alongwith fresh imposition, if any.

The initial revised rent will come into effect from 01.03.1997 and will remain valid upto 28.02.2001 alongwith payment of arrear of enhanced rent.

The above rent would be subject to, further, revision during the next 2 successive terms of 3 years each, in the following manner:

a) With effect from 01.03.2001, the rent of the ground floor and basement area is to be revised at Rs. 70.00 and Rs. 35.00 per sft/per month inclusive of all rates and taxes, respectively.

b) With effect from 01.03.2004, the rent of the ground floor and the basement area will be revised @ Rs. 100.00 and Rs. 50.00 per sft/per month inclusive of all rates and taxes and the same is to remain valid for another period of 3 years ending on 28.02.2007.

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(underlining added)

Learned counsel for the plaintiffs states that mesne profits therefore be granted at the rates specified in para 3(a) of this letter. Learned counsel for the defendant could not dispute that this letter Ex.P6 was in fact accompanied by the letter dated 27.10.1997 and which contained the proposed payment of rental charges of this very premises, however, which proposal could not go through. In my opinion, even if this proposal did not go through, the very fact that the defendant admitted that it was ready and willing to pay rent at the rate specified in paras 3(a) and 3(b) of this letter shows that mesne profits at this rate can be granted.

In view of the above, the issue Nos.1 and 2 are disposed of by holding that the plaintiffs will be entitled to rent @ Rs. 70/- per sq. ft/per month for the ground floor area of 1838 sq. ft and at Rs. 35/- per sq. ft/per month for the basement area of 2362 sq. ft. from 1.4.2001 to 10.8.2002. Of course, whatever amount the defendant has paid to the plaintiffs during this period, adjustment of this amount will be given by the plaintiffs to the defendant and which aspect will be seen, if so required, at the stage of execution proceedings.

Issue No.4

Issue No.4 is very fairly not pressed on behalf of the defendant.

Issue No.3

Issue No.3 is with respect to interest which would be payable on the arrears of mesne profits. The Supreme Court in the case of Indian Oil Corporation vs. Saroj Baweja 2005(12) SCC 298 has held that interest can be granted on arrears of mesne profits. Accordingly, following the judgment of the Supreme Court, I grant interest @ 12% per annum simple from the end of the month for which mesne profits are payable till the amount is actually paid. It is further clarified that since certain payments have already been made by the defendant to the plaintiffs, an appropriate chart will be prepared showing each month''s due and each month''s payment, and interest will only be payable on the balance amount due.

Issue No.3 is disposed of accordingly.

Relief In view of the above, the suit of the plaintiffs is decreed for mesne profits against the defendant @ Rs. 70/- per sq. ft/per month for the ground floor area of 1838 sq. ft and at Rs. 35/- per sq. ft/per month for the basement area of 2362 sq. ft. of the tenanted premises situated at plot No.84, Nehru Place, New Delhi from 1.4.2001 to 10.8.2002. Plaintiffs will also be entitled to interest @ 12% per annum simple on the arrears of mesne profits. The defendant will be granted adjustment for the amount received by it for the period for which mesne profits are granted. Interest will only be payable to the plaintiffs for the balance amount due for each month and till actual payment. Plaintiffs will also be entitled to costs in terms of the rules of this Court. Suit is disposed of accordingly. Decree sheet be prepared.