SUPREME COURT: TENANT CONTINUING IN POSSESSION AFTER EXPIRY OF TENANCY LIABLE TO COMPENSATE LANDLORD BY PAYING 'MESNE PROFITS'

The Supreme Court in the case Bijay Kumar Manish Kumar Huf Versus Ashwin Bhanulal Desai observed and has held that if the tenant continues to remain in the rented premises even after the tenancy rights are being extinguished, then the landlord would be entitled to receive compensation in the form of ‘mesne profit’ from the tenant.

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The bench comprising of Justice JK Maheshwari and Justice Sanjay Karol in the case observed and has stated that while the abovestated position is generally accepted, it is also within the bounds of the law, that a tenant who once entered the property in question lawfully, continues in possession after his right to do so stands extinguished and it is liable to compensate the landlord for such time period after the right of occupancy expires.

However, the question that appeared before the Supreme Court was to whether the tenant would be liable to pay compensation to the landlord in the form of ‘mesne profit’ when there was no eviction order against the tenant but continued to remain in the rented premise.