Hindustan Petroleum Corporation Ltd. v. Ajay Bhatia: Analysis of Lease Dispute and Mesne Profits

The case involves Hindustan Petroleum Corporation Ltd. (HPCL) and Ajay Bhatia, concerning a dispute over the recovery of possession and mesne profits related to retail outlets in Azadpur, Delhi. The appellant, HPCL, operates two separate petrol pumps, M/s Azadpur Service Station and M/s Tej Service Station. The dispute arises from the expiration of lease agreements and subsequent claims of unauthorized occupation by the appellant.

In the final judgment delivered by Indira Banerjee, J., and A.S. Bopanna, J. on September 22, 2022, the Supreme Court addressed various issues related to the recovery of possession and mesne profits. The case is significant in understanding the legalities around the enforcement of decrees for property possession, especially concerning lease agreements, and the calculation of mesne profits.

The appellant, HPCL, had leased Plot No. 4/4 to CALTEX (India) Ltd., which later merged with HPCL. The respondent, Ajay Bhatia, inherited the property after the death of his grandmother, Mrs. Rajeshwari Bhatia, and claimed possession of the plot upon the expiration of the lease. However, HPCL continued to occupy the land, leading to a legal dispute.

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The respondent filed a title suit seeking recovery of possession and damages for the wrongful occupation of the property. The suit was decreed in favor of the respondent, with HPCL being directed to vacate the premises. The respondent was also entitled to mesne profits at the rate of Rs. 50,000 per month from the date the lease expired in June 2003, a decision confirmed by the High Court in 2018.

The appellant, HPCL, filed multiple appeals challenging the execution of the decree, particularly the mesne profits calculation and the determination of the correct boundaries of the suit property. The appellant contended that the respondent had wrongly taken possession of Plot No. 4/5, an adjacent plot, instead of the actual leased property, Plot No. 4/4. They also argued that the decree was based on an inaccurate site plan.

The Supreme Court found that the execution of the decree for Plot No. 4/4 was valid, and the respondent was entitled to mesne profits. The court ruled that the respondent could not take possession of any part of Plot No. 4/5, which was not part of the suit property. The Court directed that a Local Commissioner be appointed to demarcate the exact boundaries of Plot No. 4/4 and restore possession to the respondent. The court also clarified that any excess land taken by the appellant, including portions of Plot No. 4/5 or Delhi Government land, must be returned to the appellant.

The final judgment highlights the importance of accurately identifying the suit property and the consequences of wrongful possession. It also provides clarity on the calculation of mesne profits, which can be a significant aspect of property disputes.

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Petitioner Name: Hindustan Petroleum Corporation Ltd..
Respondent Name: Ajay Bhatia.
Judgment By: Justice Indira Banerjee, Justice A.S. Bopanna.
Place Of Incident: Azadpur, G.T. Road, Delhi.
Judgment Date: 22-09-2022.

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