Introduction:

In a recent ruling by the Supreme Court, Justices JK Maheshwari and Sanjay Karol deliberated on the issue of mesne profit, emphasizing the landlord’s entitlement to compensation when a tenant remains in rented premises after the termination of their tenancy rights. The case, titled *Bijay Kumar Manish Kumar HUF v. Ashwin Bhanulal Desai*, underscored the legal intricacies surrounding the concept of “tenant at sufferance” and the corresponding obligation to pay mesne profit.

Arguments:

The petitioner’s counsel, led by Mr. Rana Mukherjee, contended that the respondent-tenant, Ashwin Bhanulal Desai, had unlawfully prolonged their stay in the rented premises, denying the landlord rightful compensation. Conversely, Mr. Rupak Ghosh, representing the respondent, sought to challenge the petitioner’s claims, arguing against the imposition of mesne profit in the absence of an eviction order.

Court’s Judgment:

Justice Sanjay Karol, in authoring the judgment, affirmed the principle that a tenant at sufferance is liable to pay mesne profit to the landlord for the duration of their continued occupancy beyond the termination of their tenancy rights. Drawing upon precedent, including the case of Indian Oil Corporation Ltd. v. Sudera Realty Private Limited, the Court reiterated that the cessation or forfeiture of tenancy rights triggers the obligation to compensate the landlord. Additionally, the Court noted the respondent-tenant’s delay in rent payments and ordered the deposit of the claimed amount to ensure equitable resolution.