In Brief
The Supreme Court addressed the computation of mesne profits (compensation for wrongful possession) in a property dispute under Delhi & Ajmer-Merwara Rent Control Act. The High Court had awarded compensation at Rs. 265/- per month based on five percent of estimated property value. The Supreme Court held that mesne profits must be measured by the actual value of user of the property, not estimated returns on property value. Following the Constitution Bench's principles in Fateh Chand, the Court affirmed the trial court's award of Rs. 140/- per month with interest, and approved a lump sum settlement of Rs. 1.83 crore as full discharge of liability for the wrongful possession period.
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