In Brief
A Bombay High Court ordered a tenant occupying prime commercial property in Mumbai's Worli area to deposit Rs. 2.5 lakh per month as compensation during pendency of an eviction appeal. The High Court calculated this as 6.5% annual return on the lessor's Rs. 5.5 crore purchase price. The Supreme Court held this method was legally flawed. Compensation must reflect the rental rate the landlord would have earned if the property had been let out—not the purchase price or investment return. The case was remitted to the High Court to determine compensation afresh on proper rental basis, while interim deposits of Rs. 2.5 lakh monthly continued pending final determination.
The lawyer headnote and full judgment text are available to registered users.