In Brief
In these consolidated appeals under the Madhya Pradesh Accommodation Control Act, 1961, tenants challenged a High Court order directing payment of Rs. 18,000/month as mesne profits during appeal from eviction decrees. The tenants argued Section 13 of the Act, which mandates deposit of agreed rent during appeal, precluded courts from imposing higher amounts. The Supreme Court held that while Section 13 requires deposit of agreed rent, it does not automatically stay eviction or shield the tenant from liability for mesne profits. After eviction is decreed, the tenant loses legal status and becomes an unauthorised occupant liable for market-rate compensation. Courts retain power under Order 41 Rule 5 of the CPC to impose reasonable conditions, including mesne profits. However, the amount must be reasonable and the tenant entitled to withdraw deposits if appeal succeeds. The Court partly allowed the appeals, modifying payment terms and permitting monthly withdrawal of Rs. 10,000 by the landlord.
The lawyer headnote and full judgment text are available to registered users.