P E C LIMITED Vs. SAMIR PRAKASH

JUDGEMENT

(1.) THESE three appeals are filed against the same impugned judgment dated 9.5.2005 of the trial Court. RFA No.563/05 is the appeal of the tenant and RFA Nos.591/05 and 712/05 are the appeals filed by the landlords. RFA No.712/05 already stands dismissed for default on 15.3.2010. Whereas the landlords seek increase in the rate of mesne profits than as awarded by the impugned judgment besides increase in the rate of interest, the tenant seeks the setting aside or reduction in the rate of interest granted on the mesne profits.

(2.) THE undisputed facts are that the company M/s. P.E.C. Limited (formally Project and Equipment Corp. of India Ltd.), a government of India enterprises, was a tenant of the premises being flat No.9H, 9th floor, Hansalaya Building, 15 Barakhamba Road, New Delhi. THE covered area of the property is 1413 sq. feet. THE tenancy of the tenant was terminated by a legal notice dated 5.5.1989 and the mesne profits were accordingly to be calculated from 15.6.1989 till 30.9.1998, the latter being the date on which the subject premises were vacated by the tenant. THE trial Court has granted the following mesne profits:

(3.) THE appellant in RFA No.591/05, who is a landlord and also an Advocate, argued his appeal in person and also replied to the arguments urged on behalf of the counsel for the tenant company. No one had appeared on behalf of the landlord in RFA Nos.712/05 (this landlord is again an Advocate and the real brother of the appellant in RFA No.591/05) and which was dismissed for default on 15.3.2010. However, all the arguments as could have been raised on behalf of the landlords have been raised by the appellant/landlord in RFA No.591/05. It is argued that the trial Court has wrongly discarded the lease deeds being Ex.PW1/1 to Ex.PW1/3 and Ex.PW2/1 which were lease deeds with respect to flats in the same area viz Connaught Place. It was also argued that the trial Court erred in wrongly granting percentage increase in mesne profits from the base period of 15.6.1989 to 14.11.1990. It was urged that though the mesne profits for this period @ Rs.25/- per month for the period from 15.6.1989 till 14.11.1990 are accepted by the landlord, however, the increase thereafter should not be percentage increase on this base rate of mesne profits, but, should be relatable to the market rate after a block of years such as three years, five years or so on.