Bharat Sanchar Nigam Ltd. vs Dr. Kranti Prasad Jain and Another

J.R. Midha

The appellant has challenged the judgment and decree of the learned Trial Court whereby the learned Trial Court held the appellant to be liable to pay arrears of rent at the rate of Rs. 42,180/- calculated @ Rs. 114/- per sqr.ft. for the period of December, 2004 to February, 2006 and mesne profits also at the same rate for the period March, 2006 to 23rd August, 2007 when the appellant vacated the suit property.

According to the appellant, the arrears of rent and mesne profits should have been awarded @ Rs. 95/- per sq.ft. which was the last paid rent by the appellant to the respondent.

The appellant vacated the suit property on 23rd August, 2007 and thereafter, the respondent let out the same vide lease deed - Ex.PW1/11 at the rate of Rs. 300/- per sq.ft. The respondent claimed mesne profits at the rate of Rs. 300/- per sq.ft. However, the learned Trial Court rejected the respondent''s contention and held the appellant to be liable to pay the arrears of rent and mesne profits in terms of the lease deed - Ex.PW1/2 which provided the enhancement of rent by 20% after 13th December, 2004.

This case squarely covered by the recent judgment dated 18th May, 2011 of this Court in RFA Nos.209-213/2011 dealing with different flats taken on rent by the appellant in Statesman House. In those cases also, the appellant sought reduction of mesne profits from Rs. 125/- per sq.ft. to Rs. 95/- per sq.ft. whereas the landlord sought enhancement of the mesne profits by cross-objections. This Court rejected the contention of the appellant and enhanced the mesne profits from Rs. 125/- per sq.ft. awarded by the learned Trial Court to Rs. 200/- per sq.ft. The finding of this Court are reproduced hereunder:-

Related to this aspect of payment of interest is the prayer of the appellant that since rate of interest at 9% per annum has been awarded after termination of tenancy on the mesne profits awarded, it is this same rate which ought to have been awarded even for the prior period. I find strength in this argument inasmuch as the Supreme Court in the recent chain of judgments reported as Rajendra Construction Company Vs. Maharashtra Housing and Area Development Authority and Others, , McDermott International Inc. Vs. Burn Standard Co. Ltd. and Others, , Rajasthan State Road Transport Corpn. Vs. Indag Rubber Ltd., & Krishna Bhagya Jala Nigam Ltd. Vs. G. Harischandra Reddy and Another, and State of Rajasthan Vs. Ferro Concrete Construction Pvt. Ltd (2009) 3 Arb. LR 140 (SC) has held that the courts must take note of the changed economic scenario and the consistent fall in the rates of interest, and ought not to grant high rates of interest. I, therefore, feel that the appeals should be partially allowed by modifying the rate of interest which was granted at 12% per annum from 13.12.2007 by reducing the same to 9% per annum simple and which rate will serve the ends of justice. It is clarified that rate of interest of 9% per annum simple on the damages in any case will also be payable to the respondent in terms of the impugned judgment and decree for the period after termination of tenancy.

So far as the claim of the appellant for reduction in the rate of mesne profits is concerned to Rs.95 per sq. ft, instead of 125 per sq. ft., this issue can be dealt with along with the cross objections inasmuch as in the cross objections, the respondent/plaintiff has prayed for a higher rate of mesne profits. In this regard, learned counsel for the respondent has drawn my attention to Ex.PW2/2, which is a registered lease deed for the same premises, viz. Statesman House, Barakhamba Road, New Delhi and as per which in November 2007 the rate of rent of Rs. 295/- per sq. ft. has been fixed. If therefore the rate of rent contractually is proved to be Rs.295/- in November, 2007 the trial court thus ought not to have reduced the rate of mesne profits to 125 per sq. ft. for the near period of February to July 2007 although the trial court had itself relied upon lease deed Ex.PW2/2. Surely, it cannot be said that the contractual rent would be Rs.295/- per sq. ft. per month in November 2007, but for a few months before it would only be 125 sq. ft. per month i.e. from February to July 2007. Even if, I consider a substantial increase in rate of rent, i.e.33% in one year, and considering that the contractual rent is Rs.295 per sq. ft. per month in November, 2007, the rate of rent/mesne profits should be at least Rs.200 per sq. ft per month from February, 2007 to July, 2007. Accordingly, I partly accept the cross objections and enhance the rate of mesne profits from 14.2.2007 to 31.7.2007 to Rs.200 per sq. ft per month.

Following the aforesaid judgment, it is held that no case for reduction of rent and mesne profits is made out in the present case. The findings of the learned Trial Court relating to the arrears of rent and mesne profits at the rate of Rs. 114/- per sq.ft. is upheld. However, since the respondent has not filed the cross-objections, the enhancement of the mesne profits is not warranted.

In the facts and circumstances of this case, the appeal is dismissed. The pending applications stand disposed of.