SHYAM AHUJA LIMITED Vs. G M ENTERPRISES

JUDGEMENT

(1.) This Appeal is preferred by the appellant (defendant in the Suit) against judgment and decree dated 29/03/2000 passed by the learned Single Judge in Suit No. 1201 of 1996. The learned Single Judge has decreed the Suit of the plaintiff-respondent herein for Rs.1,43,78,659.89 alongwith cost as well as interest @ 18% per annum on the decretal amount from the date of decree till its realisation. Plaintiff had filed the Suit. in May 1996 for ejectment and recovery of Rs .13,37,928.00 towards mesne profit's and for determination and grant of future mesne profits. Since the appellant had surrendered the possession of the Suit property to the respondent on 7/1/1999, the question which remained to be determined was regarding mesne profits alone.

(2.) The Suit property is plot no. 3, EFGH Block, local shopping Centre, MasJid Moth, New Delhi. It comprises of ground floor and the basements immediately below the same with total super area of 4432 sq.ft. The respondent, who is the owner and landlord of the property in question, had let out the Suit property to the appellant vide Lease Deed dated 9/5/1985. This lease was for a period of three years effective from 1 5/05/1985 upto 14/05/1988, .After the expiry of the period mentioned in the Lease Deed no fresh lease was executed. The appellant however continued in possession by paying rent every month. The.respondent terminated the tenancy, which according to it had become month to month tenancy, by serving notice under Section 106 of the Transfer of Property Act, (hereinafter referred to as the Act, for short) and called upon the respondent to handover vacant possession of the demised premises. As the appellant did not vacate the premises pursuant to the demand contained in the notice, respondent filed the aforesaid Suit for ejectment and mesne profits. As observed above, possession of the demise property was handed back to the respondents on 7/1/1999. Accordingly, the learned single judge proceeded to decide the question of mesne profits.Evidence was led by way of affidevits. on the basis of material placed on record learned single judge concluded that the respondaent was entitled to mesne profits @ Rs.125.00 per Sq. ft. for the period of 34 months i.e. w.e.f. 1/03/1996 to 7/01/1999. The appellant had given security deposit for Rs.14,40,000.00. Tje impugned judgment directs the adjustment of this amount from the mesne profits payable alongwith interest thereon @ 17% per annuam w.e.f. 7/01/1999. There is also a direction for subctractinb the rental paid upto 31/05/1998. Making the calculations in the aforesaid manner the decree for Rs.1,43,659.89 has been passed by giving the following details:- <FRM>JUDGEMENT_606_DLT90_2001Html1.htm</FRM>

(3.) Although in the Memorandum of appeal, the impugned Judgment and decree is assailed on various grounds, the only ground pressed at the time of arguments was that the rate of Rs.125.00 per sq.ft. per month fixed by the learned Single Judge in the impugned Judgement was exorbitant and did not commensurate with the market rent. According to learned counsel appearing for the appellant the rental in the last two years had declined. It was also argued that the appellant, after vacating the demised premises had taken another premise on rent in the same vicinity at a much lower rate. It was also submitted that the premises in question consisted of basements as well as ground floor and the learned Single Judge ought to have taken into consideration the fact that the basement of the premises cannot be compared with the ground floor of the same premises and fixing of mesne profits @ Rs.125.00 per sq.ft. for ground floor as well as basement was not permissible. It was further submitted that learned Single Judge had relied upon the rent relating to the properties at BhikaJi Commercial Complex which was not of any relevance as BhikaJi Cama Place was a commercial centre at Ring Road with special location for commercial operation and could not be equated with the Suit property.