Gemini Distributors vs Balwinder Kumar Garg

Sabina, J.—This petition has been filed challenging order dated 14.9.2012 (Annexure P-1), whereby, mesne profits were assessed by the Appellate Authority. Learned counsel for the petitioners has submitted that the Appellate Authority had erred in basing reliance on lease deed dated 3.6.2011 as the said premises had already been vacated by the tenant.

Learned counsel for the respondents, on the other hand, has opposed the petition and has submitted that the mesne profits assessed by the Appellate Authority were liable to be upheld.

In the present case, respondents had sought ejectment of the petitioners on the ground of non payment of rent and personal necessity. The Rent Controller, vide order dated 10.10.2011, ordered the ejectment of the petitioners on the ground of personal necessity as well as non payment of arrears of rent. The said order has been challenged by the petitioners by way of appeal. During the pendency of the appeal, respondents moved an application for assessment of mesne profits.

The Appellate Authority, while assessing the mesne profits, has observed as under:-

"7. After having heard both sides, I find no merit in any of the contentions of learned counsel for the appellant-tenants. The copy of the lease deed placed on record by the appellant-tenants pertaining to the year 1988 and 2006, therefore, the same cannot be taken into consideration for the assessment of the prevailing market rate of rent of the demised premises. The demised premises i.e. shop/house No. 588 is situated in Kesho Ram Complex, Village Burail, U.T., Chandigarh. The respondent-landlords have placed on file the copy of registered lease deed dated 03.06.2011 pertaining to shop No. 644 situated in Kesho Ram Complex, Village Burail, U.T., Chandigarh having area measuring 15'' x 75'' = 1125 sq.-ft. which was leased out @ Rs. 45,000/- per month and in this way the rate of rent works out to be Rs. 39.80 paise per sq. ft. per month. The said shop bearing No. 644 and the demised premises bearing No. 588 are situated in Kesho Ram Complex, Village Burail, U.T., Chandigarh. Learned Counsel for the appellant-tenants has failed to disclose how the shop No. 644 is at the advantageous location in comparison to the demised premises. Thus, keeping in view the rate of rent mentioned in the lease deed dated 03.06.2011 is to be taken the prevailing rate of rent for the similar premises in the locality and the rate of rent of the demised premises is worked out to be Rs. 39.80 x 562.50 sq. ft. i.e. Rs. 22,287.50 paise per month to which the respondent-landlords are held entitled as mesne profits for use and occupation of the demised premises by the appellant-tenants, from the date of order of ejectment i.e. 10.10.2011."

Thus, the Appellate Authority has based reliance on lease deed dated 3.3.2011 pertaining to a nearby shop. Although, learned counsel for the petitioners has submitted that the tenant, who had taken the premises on rent vide lease deed dated 3.3.2011, has vacated the premises but the said lease deed could be taken in consideration by the Appellate Authority while assessing the mesne profits. Lease deed placed on record by the petitioners was dated 22.8.2006 and rent agreement was dated 24.6.1988. The same were rightly not considered by the Appellate Authority as they were qua much earlier period. In these circumstances, the rate of mesne profits, assessed by the Appellate Authority, cannot be said to be on a higher side. No ground for interference by this Court is made out.

Dismissed.