In Brief
A property owner in Jaipur sought eviction of commercial tenants through proceedings initiated under the 1950 Rent Control Act. After a two-decade dispute, the High Court granted eviction and fixed mesne profits (compensation for wrongful occupation) at Rs.2,50,000 per month. The tenants challenged this, arguing the 2001 Rent Control Act capped such compensation at three times the standard rent (Rs.1,35,000). The Supreme Court held that the 1950 Act continues to apply to proceedings initiated under it and pending when the new Act commenced, making the 2001 Act's cap inapplicable. Mesne profits are determined based on location, nature of premises, and market conditions. The Court upheld Rs.2,50,000 as reasonable and dismissed the appeal.
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