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Anar Devi (D) through LR vs Vasudev Mangal Etc. Etc.

Civil Appeal · 2022 INSC 294Decided 10 Mar 2022
Civil Appeal Nos. 1852-1859 of 2022
M.R. Shah · B.V. Nagarathna

Background

The appellant (later represented by her legal heir after her death) had sued four occupants of portions of her residential house, who she said were licensees, for recovery of possession and mesne profits (compensation for wrongful use of property) after their licences ended. The trial court decreed all four suits in her favour. While the occupants' appeals against that decree were pending, the first appellate court fixed monthly mesne profits ranging from Rs. 3,000 to Rs. 10,000 per occupant as a condition for staying execution of the decree. Both sides challenged this before the High Court of Judicature for Rajasthan (Jaipur Bench), which reduced the mesne profits by roughly half, largely because the property was residential and about 100 years old.

Decision Breakdown

The Supreme Court found that the High Court had mechanically slashed the mesne profits by 50% without properly considering the current market rental potential of the property, relying instead only on a valuer's report meant for commercial premises and the government-notified (DLC) rate. The Court held that even if the valuation used was for commercial use, that alone did not justify an automatic 50% cut. Exercising its own assessment of what would be "just" mesne profits while the first appeal remained pending, the Court fixed intermediate figures for each of the four occupants - higher than the High Court's reduced amounts but lower than the first appellate court's original figures - and directed the pending first appeals to be heard on an expedited basis.

Lesson Learnt

When a court fixes provisional compensation (like mesne profits) pending an appeal, it must base the figure on the actual current market potential of the property, not just mechanically apply a percentage cut or rely on a valuation report prepared for a different type of use.

Official source (sci.gov.in)View Judgment (PDF)

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