Landlord-Tenant Relationship Ends Only With Eviction Decree; Mesne Profits To Be Calculated From Decree Date: Supreme Court

The Supreme Court recently observed that under the Maharashtra Rent Control Act, 1999, it is the settled law that the relationship of landlord and tenant comes to an end only upon the passing of the decree of eviction.

“As the decree of eviction was passed under the Maharashtra Rent Control Act, 1999, the settled position of law is that only on the decree of eviction being passed, the relationship of the landlord and the tenant comes to an end”, the Court observed.

A bench of Justice Abhay S. Oka and Justice Ujjal Bhuyan accordingly modified a trial court order for inquiry into mesne profits from date of eviction suit to an order for inquiry into mesne profits from date of eviction decree.

“The suit is under Rent Act; the termination of tenancy takes place on the date on which decree of is passed. And therefore, mesne profit has to be calculated from the date of the decree. You will get mesne profit from the date on which his possession becomes unlawful. His possession becomes unlawful when termination of tenancy takes place”, Justice Oka said.

The term “mesne profits”, as defined under section 2(12) of the CPC refers to the profits which a person in wrongful possession of property actually received or might with ordinary diligence have received from such property. Mesne profit is generally awarded to compensate the rightful owner for the loss of income from the property during the period of unlawful possession by another person.

The respondent (landlord) in the present case had filed a suit for eviction against the appellant (tenant) on various grounds under the Maharashtra Rent Control Act, 1999. A decree for possession had been passed by the Trial Court, which has attained finality. The appellant had already been evicted from the premises.

The issue before the Supreme Court was with respect to trial court's direction under Order XX Rule 12(1)(c) of the CPC to an inquiry into mesne profits from the date of suit till delivery of vacant peaceful possession of the suit property by the tenant to the landlord.

As the landlord-tenant relationship comes to an end on an eviction decree, it is only after the decree is passed that the tenant is considered to be in wrongful possession of the property.

Accordingly, the Court modified the aforementioned direction and ordered inquiry into mesne profits from 29th March, 2014 (date of the eviction decree) till the delivery of the vacant possession of the suit property.

Case no. – Civil Appeal Nos. 4595-4596 of 2025

Case Title – Amritpal Jagmohan Sethi v. Haribhau Pundlik Ingole

Citation : 2025 LiveLaw (SC) 400

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