Authority: Supreme Court of India

Order Date: 11 August 2026

Case Overview

  • Parties: appellant SMT. KRISHNA DEVI HARALALKA (since deceased) through MR. ASHISH HARALALKA vs. respondent M/S. STATE TRADING CORPORATION OF INDIA LTD.
  • Appeals: Civil Appeal No. /2026 (SLP(C) No.23826/2026) and Civil Appeal No. /2026 (SLP(C) No.23827/2026).
  • Underlying matters: Civil Revision Applications CRA No.989/2014 and CRA No.1010/2014 concerning mesne profit claims for office No.605 and office No.606 respectively, each about 500 sq. ft. on the sixth floor of Maker Chamber No. IV, Nariman Point, Mumbai 400021.
  • Original mesne profit applications (2005) were allowed at Rs.12 per sq. ft. per month from 01‑01‑2002 until actual delivery of possession (25‑04‑2011 for one office, 01‑03‑2011 for the other) with interest.
  • The appellants had filed Misc. Appeals No.542/2009 and No.535/2009 before the Appellate Bench of the Small Causes Court; both were dismissed on 07‑05‑2014.
  • The appellants sought parity with the mesne profit award in STC v. Neelam Choudhary (CRA No.111 of 2019, decided 16‑10‑2024). The impugned order instead referenced STC v. Ravinder Singh (CRA No.308 of 2011, decided 28‑11‑2025), which had granted Rs.90 per sq. ft. per month.
  • The Court noted that in STC v. Godavaridevi a higher rate of Rs.150 per sq. ft. per month had been awarded.
  • Paragraph 18 of the impugned order highlighted that the period for mesne profit calculation should be from 01‑01‑2002 to the possession dates, but cited differing periods and rates from the cited cases (e.g., Rs.150/- per sq. ft. for Sep 2003‑Dec 2007 and Rs.250/- per sq. ft. for Jan 2008‑Aug 2012 in STC v. Neelam Choudhary).
  • The determination of mesne profits was challenged by STC in Special Leave Petition (C) No.31033 of 2024, which was rejected on 15‑01‑2025; a review petition was also rejected on 23‑09‑2025.

Final Outcome

  • The Supreme Court modifies the impugned order, directing that mesne profits be awarded as in STC v. Neelam Choudhary, i.e., Rs.150 per sq. ft. per month for the period September 2003 to December 2007 and Rs.250 per sq. ft. per month for January 2008 to August 2012.
  • The appeals are allowed to this extent.
  • All pending applications, if any, are ordered to stand disposed of.

Topics: Mesne Profits, Property Lease, Supreme Court Judgment