(1.) (Oral) - Petitioner-tenant has challenged the order dated 31.03.2016 (Annexure P4) passed by the Appellate Authority, Patiala whereby the mesne profits had been fixed at Rs.10,000.00 per month, from the date of eviction order, i.e., 16.03.2016.
(2.) A perusal of the impugned order goes on to show that the rate of rent was Rs.175.00 of the shop situated at Arya Samaj Chowk, Patiala, which was rented out in the year 1973. The said order does not depict that whether any registered lease deed was taken into consideration while fixing the mesne profits. The issue is no longer res integra. It has been time and again held that the fixation of mesne profits is to be on the basis of some registered documents and it cannot be fanciful, at the discretion of the Court. In the absence of any such registered lease deed being produced by the respondent-landlord, this Court is of the opinion that the order itself is not sustainable and is liable to be set aside.
(3.) The law on the said issue is that once the order of eviction has been passed, the contractual rate of rent inter se the parties comes to an end was laid down by the Apex Court in M/s. Atma Ram Properties (P) Ltd. Vs. M/s. Federal Motors Pvt. Ltd., 2005 (1) SCC 705. The view was followed in Anderson Wright and Co. Vs. Amar Nath Roy, 2005 (2) RCR (Civil) 831 and by a three-Judge Bench of the Apex Court in State of Maharashtra and another Vs. M/s. Super Max International Pvt. Ltd. and others, 2009 (9) SCC 772. It was further held that the amount of mesne profits should not be excessive, fanciful or a punitive amount. The relevant observations read thus:-