Delhi HC Orders Tenant to Pay ₹3.27 Crore for Overstaying Property
What Happened
The Delhi High Court recently ruled that a tenant (identified as a bank) must pay ₹3.27 crore with 6% annual interest to a landlady for continuing to occupy her Defence Colony Market property after the rent agreement expired in December 2004. The original agreement, signed in 2002, covered three years at ₹62,000 per month with a 20% escalation clause. Despite expiry, the tenant did not vacate and instead paid enhanced rent, effectively creating a month‑to‑month tenancy. In 2008, the landlady issued an eviction notice and sought mesne profits of ₹4 lakh per month. The tenant finally vacated in December 2017, but the court held the tenant liable for compensation covering the unauthorized occupation period.
Key Takeaways
The ruling reinforces that tenants who remain after lease expiry and ignore eviction notices are liable to pay mesne profits, not just rent. It underscores the judiciary’s stance on protecting landlords’ rights against unauthorized possession.