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Bombay High Court

CENTRAL BANK OF INDIAversusINDIAN NATIONAL PRESS BOMBAY PRIVATE LIMITED

Decided
Disposal
Allowed

Holding

The High Court held that the appellate court's use of a 10% inflation rate was acceptable and dismissed the civil revision application.

Summary

The Central Bank of India, as tenant, challenged the Small Causes Court's order granting mesne profits after an eviction decree, alleging that the appellate court had applied an excessive inflation rate of 10% to compute the compensation. The appellate bench reduced the rates but based its inflation adjustment on a uniform 10% per annum for 2007‑2012, which the petitioner argued should have been limited to the actual average of 9.33%. The High Court examined whether the appellate court erred in its inflation computation and whether such a minor variation warranted interference. Finding that the only evidence before the appellate court was the 10% figure and that the reduction already benefited the petitioner, the Court declined to disturb the order. Consequently, the civil revision application was dismissed and the interim application remained disposed.

Issues considered

  • Whether the appellate court erred in applying a uniform 10% inflation rate for mesne profits instead of the actual average inflation rate.
  • Whether the appellate court's modification of mesne profits award is liable to be set aside on the ground of excessiveness.
  • Whether the civil revision application challenging the appellate order should be allowed.

Subjects

  • mesne profits
  • inflation adjustment
  • appellate court
  • civil revision
  • landlord-tenant
  • eviction decree
  • Small Causes Court
  • interest

Judgment

                                IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                       CIVIL APPELLATE JURISDICTION

                                    INTERIM APPLICATION NO. 2760 OF 2026
SUFIYAN                                             IN
EHTESHAM
SYED                           CIVIL REVISION APPLICATION (st) NO. 4824 OF 2026
Digitally signed by
SUFIYAN
EHTESHAM SYED
Date: 2026.09.05
15:18:00 +0530

                      Central Bank of India                                     .. Applicant

                                   Vs.
                      Indian National Press (Bombay)
                      Private Limited                                           .. Respondent


                      Adv. Rathina Maravarman a/w Adv. Asma Batatawala, for the Applicant.
                      Adv. Ranjana Parikh, for the Respondent.

                                                        CORAM : ARUN R. PEDNEKER, J.
                                                        Date : 1st SEPTEMBER 2026

                      P.C. :


                      1.       Heard learned counsel for the Petitioner.

                      2.       The Petitioners challenges the order passed by the Appellate Court on

                      the application for mesne profits. The facts in brief are that, the appellant

                      herein was a tenant of the suit premises belonging to the Respondent. An

                      eviction decree was passed against the appellant and in pursuance thereof,

                      the suit property was handed over to the Respondent landlord.              While

                      computing the mesne profits, based on the evidence placed by the plaintiff,

                      the trial Court granted the mesne profits at the rate of Rs.180 per square feet

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                      38.IA.2760.2026.doc                                            Sufiyan Syed - PA
for the ground floor and Rs.150/- for the mezzanine floor.

3.      In an Appeal preferred before the Appellate Bench of Small Causes

Court, the order of the trial Court granting mesne profit is modified as

under :

1)      The operative order of the said Mesne Profits Application be

substituted as follows :-

       i)     Mesne Profits Application is allowed with proportionate cost as
       follows :-

       (a)    The Plaintiffs are entitled to recover the Mesne Profits in
       respect of the suit premises as below :-

        Sr. No.          Period       Rate of Mesne Rate of Mesne Profits per
                                      Profits per Sq. Ft. sq. ft per month for
                                      Per month for Mezzanine floor (in rupees)
                                      Ground Floor (In
                                      Rupees)
            1)        01.11.2006 to         108.7             86.46
                       31.12.2006
            2)        01.01.2007 to         118.87            95.10
                       31.12.2007
            3)        01.01.2008 to         130.76            104.61
                       31.12.2008
            4)        01.01.2009 to         143.84            115.07
                       31.12.2009
            5)        01.01.2010 to         158.22            126.58
                       31.12.2010
            6)        01.01.2011 to         174.04            139.24
                       31.12.2011
            7)        01.01.2012 to         191.45            153.16
                       10.11.2012

       b)         The defendants are hereby ordered to pay interest at the rate of

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38.IA.2760.2026.doc                                               Sufiyan Syed - PA
       9% per annum on the amount of each year compensation from 1 st
       January of succeeding year.

       For example :- for the period of 01.11.2006 up to 31.12.2006 from
       01.01.2007 and for the period 01.01.2007 to 31.12.2007 from
       01.01.2008 and so on till its resolution.

       C)      The amount if any deposited by the defendants in pendency of
       the suit, appeal or revision, the same may be adjusted along with its
       interest in the Mesne Profits amount.


4.      Challenging the Order of the Appellate Court, the learned counsel

appearing for the Petitioner/tenants submits that the Appellate Bench has

accepted her earlier submissions as regards the excessive compensation as

mesne profits being granted by the Small Causes Court and has reduced the

the same to Rs. 108.07 for the ground floor and Rs. 86.46 for the mezzanine

floor. However, she submits that the Appellate Bench has erred in applying

inflation component by applying the inflation based on all India inflation

rates. The Appellate Bench has computed inflation for a period 2002 to 2006

@ 4.38% and for a period 2007 to 2017 @ 10%. She submits that such an

inflation rate applied by the Court has been arrived on its own and that the

Appellate Bench should have relegated the parties to lead evidence on this

aspect. From 2007 to 2012, the Appellate Court has awarded inflation rate

of 10% annual increase.

5.      Learned counsel vehemently argued that the average for the years

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38.IA.2760.2026.doc                                          Sufiyan Syed - PA
2007 to 2012 works out to 9.33% and that the Court has rounded it of at

10%. Such a rounding off should have not been on the high rate and that the

highest inflation rate that could have been accepted is of 9.33%.

6.      However, this Court find that in the first instance, the only evidence

that was available before the Court was of 10% inflation each year. The

Appellate Bench has already granted reduction to the appellant herein and

there no case is made out in interference with the minor variation of 9.33%

to 10%.

7.      Accordingly, Civil Revision Application dismissed and Interim

Application also stands disposed.



                                                (ARUN R. PEDNEKER, J.)




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