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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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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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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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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