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Supreme Court of India 2022-09-06 dismissed

INDIAN OIL CORPORATION LTD vs SUDERA REALTY PRIVATE LIMITED

Bench: 2 — K.M. Joseph, Pamidighantam Sri Narasimha

In Brief

A company leased office premises for 21 years under a registered 1968 agreement. Possession was handed over in 1969–1970. The company remained in occupation after the lease expired and the landlord sued for mesne profits (damages for unlawful occupation). The High Court partly allowed the landlord's appeal and modified the quantum calculation. The Supreme Court held that the 1968 agreement constituted a valid lease despite lacking a formal deed; the company became liable for mesne profits after expiry. The Court rejected the company's arguments that it became a monthly tenant, was protected under the Tenancy Act, or that the suit was time-barred. It held that damages for unauthorised occupation following lease expiry are governed by the residuary limitation provision and constitute a continuing daily obligation, not a single cause of action subject to a three-year bar.

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Tenancy and Lease Limitation Act Mesne Profits Transfer of Property Act West Bengal Premises Tenancy Act Damages for Use and Occupation Landlord and Tenant Civil Procedure

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