Authority: Supreme Court of India

Order Date: 07 September 2026

Case Overview

  • Parties: National Insurance Company Limited (appellant) vs. The Hanuman Estates Limited (respondent).
  • Proceedings: Special Leave Petition (C) No. 30536/2026 arising from the High Court at Calcutta’s judgment dated 06‑05‑2026 in APD No. 14/2023.
  • Counsel: For the appellant – Sr. Adv. Vipin Sanghi, Ms. Hetu Arora Sethi (AOR), Adv. Nirmal Prasad, Adv. Sanidhya Kumar, Adv. Deepak Gupta. For the respondent – Sr. Adv. Rekha Palli, Adv. Amit Meharia, Adv. Tannishtha Singh, among others.
  • Background: The dispute centered on the mesne profit (rent) rate fixed by a Special Referee. The Referee’s report (dated 26‑04‑2021) calculated monthly mesne profit for three periods (Dec 2012‑Nov 2015, Dec 2015‑Nov 2018, Dec 2018‑Jan 2020) aggregating to Rs 8,54,87,169.88 with interest at 8% per annum.
  • Appellant’s Argument: The basic rate should be Rs 70 per sq ft per month instead of the Referee’s Rs 89 per sq ft per month.
  • Respondent’s Counter‑argument: The Rs 70 rate is too low and cannot be accepted.

Court’s Reasoning & Directions

  • The Court found that justice would be served by adjusting the rate for the first period (Dec 2012‑Nov 2015) from Rs 89 to Rs 80 per sq ft per month. The quantum for the subsequent periods shall be computed accordingly.
  • The interest rate is altered from 8% to 6% per annum, superseding the High Court’s determination.
  • Since the appellant‑insurance company had already deposited the amount ordered by the High Court, the Registry of the High Court is directed to re‑compute the payable amount in consultation with both parties.
  • The respondent is to withdraw the recomputed amount with the revised interest, and any balance is to be returned to the appellant.
  • The recomputation exercise must be completed within four weeks from the date of the order.

Final Outcome

  • The appeal is allowed in part as per the above terms.
  • No costs are awarded to either party.
  • All pending applications, if any, are disposed of.

Topics: Court / NCLT / NCLAT Matter, Insurance, Real Estate