New Delhi: The Supreme Court raised serious concern over the prolonged delays in landlord-tenant disputes in Maharashtra and has urged the Chief Justice of the Bombay High Court to assess the situation and ensure time-bound resolution of such cases. A bench comprising Justices Sanjay Karol and Manoj Misra directed the High Court to seek reports from subordinate courts regarding pendency in landlord-tenant matters and take appropriate measures if such delays are found to be widespread.
The apex court highlighted that landlord-tenant cases often involve not just legal possession but major financial implications. "When it comes to landlord-tenant disputes, there is an angle of being deprived of the enjoyment of the property and also the monetary benefits that accrue from owning such property. The courts, being the courts of law and justice, are duty-bound to ensure that on their account, no party is made to suffer. In these kinds of disputes delayed adjudication means that both parties bear the brunt," the order stated, according to a Live Law report.
This direction came while deciding a case involving Hindustan Organic Chemicals Ltd. (HOCL), which had been occupying 'Harchandrai House' in Mumbai. The legal battle over mesne profits, compensation for wrongful occupation, had dragged on for over 25 years. The case originally reached the Bombay High Court, which delivered a judgment in December 2024. Two cross-appeals were filed before the Supreme Court challenging parts of that judgment.
Though the Supreme Court upheld the High Court’s ruling regarding the per square foot rate for calculating mesne profits, it slightly reduced the interest rate on the due amount from 8 per cent to 6 per cent. The tenant was directed to pay the outstanding dues to the landlord within three months.
The Court expressed deep concern over the excessive delay. “This litigation began in the year 2000, and only now, after nearly 25 years, the rightful owner is being compensated. Such prolonged litigation deprives property owners of both possession and income, defeating the purpose of justice,” the bench noted.
The Supreme Court acknowledged that delays may sometimes be caused by litigants themselves, but also pointed out that in many cases, the judicial system contributes to the lag. To address systemic inefficiencies, the Court asked the Chief Justice of Bombay High Court to evaluate whether such delays are prevalent and to initiate corrective action to speed up pending landlord-tenant disputes across the state.
