Smt. Shanti Devi & Ors. vs United Bank Of India
2012 Latest Caselaw 5100 Del

*              IN THE HIGH COURT OF DELHI AT NEW DELHI

+                           CS(OS) No. 779/2002

%                                                            29th August, 2012

SMT. SHANTI DEVI & ORS.                                    ..... Plaintiffs
                   Through:              Mr. Aly Mirza, Advocate.

                      Versus


UNITED BANK OF INDIA                                       ..... Defendant
                  Through:               Mr. Sanjiv Kakra, Advocate with Mr. Atul
                                         Kumar, Advocate.

CORAM:
HON'BLE MR. JUSTICE VALMIKI J.MEHTA

    To be referred to the Reporter or not?


VALMIKI J. MEHTA, J (ORAL)

1.             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 ` 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.

CS(OS) 779/2002                                                               Page 1 of 5
 2.           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.

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

     "1.     Whether the plaintiffs are entitled to ` 45, 41,230/- (minus `
     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
     2.      Whether the plaintiffs are entitled to damages/mesne
     profits/compensation for use and occupation w.e.f., 15.3.2002 to
     10.8.2002 @ ` 3,50,000/- per month. OPP
     3.      Whether the plaintiffs are entitled to interest on rent w.e.f., on the
     rent due @ 15% p.a. OPP
     4.      Whether the plaintiffs entered into agreement waiving off their
     claims as pleaded in the written statement? OPD
     5.      To what relief/s the plaintiff is entitled to
     6.      Relief"

Issue Nos.1 and 2

4.           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.

CS(OS) 779/2002                                                             Page 2 of 5
        We are glad to inform you that Competent Authority of the Bank has
     approved the above proposal on the following terms and conditions:
     1.       Initial revised rent is fixed at ` 48.00 and ` 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.
     2.       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.
     3.       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 ` 70.00 and ` 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 @ ` 100.00 and ` 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.
     xxxx             xxxx         xxxx          xxxx" (underlining added)

5.           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.

CS(OS) 779/2002                                                              Page 3 of 5
 6.           In view of the above, the issue Nos.1 and 2 are disposed of by

holding that the plaintiffs will be entitled to rent @ ` 70/- per sq. ft/per month for

the ground floor area of 1838 sq. ft and at ` 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

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

Issue No.3

8.           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.
CS(OS) 779/2002                                                            Page 4 of 5
              Issue No.3 is disposed of accordingly.

Relief

9.           In view of the above, the suit of the plaintiffs is decreed for mesne

profits against the defendant @ ` 70/- per sq. ft/per month for the ground floor area

of 1838 sq. ft and at ` 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.




AUGUST 29, 2012                                       VALMIKI J. MEHTA, J.

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