Tenants Remaining After Lease Expiry Must Compensate Landlords with 'Mesne Profits' : Supreme Court
In the case of Bijay Kumar Manish Kumar HUF v. Ashwin Bhanulal Desai, the Supreme Court ruled that tenants remaining in possession after their tenancy has expired must compensate the landlord with 'mesne profits.'
Key Points:
Ruling Details:
Justices JK Maheshwari and Sanjay Karol concluded that tenants who stay in the rented property after their tenancy rights are extinguished must pay compensation in the form of 'mesne profits.'
Legal Basis:
The court stated that a tenant who lawfully entered the property but continues to occupy it after their rights have ended is liable to compensate the landlord.
This ruling applies even if there is no eviction order against the tenant.
Tenant at Sufferance:
A "tenant at sufferance" is a tenant who remains in possession after the lawful title has ended.
The court drew support from the precedent set in Indian Oil Corporation Ltd. v. Sudera Realty Private Limited, where tenants were required to pay mesne profits after their lease expired.
Terminology Impact:
Terms like 'determination,' 'expiry,' 'forfeiture,' and 'termination' lead to the extinguishment or weakening of tenant rights, making them liable for mesne profits.
Court's Conclusion:
The Supreme Court noted that the respondent-tenant had been delaying rent payments, causing substantial financial harm to the landlord.
The court ordered the tenant to deposit the claimed amount to ensure justice.