SC Adjusts Interest on Mesne Profits; Confirms Settlement Adjustment and Allows Partial Appeals with No Costs.

The SC upheld the HC's determination of mesne profits at Rs. 39,41,920/-. It modified the interest rate from 13% to 6% per annum on mesne profits and the decree for accounts. The adjustment of Rs. 4,13,364.24 was confirmed as previously settled. Appeals were allowed in part, with no costs awarded.

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Issues Involved:
1. Determination of quantum of mesne profits payable to the respondent-plaintiff by the appellants.
2. Rate of interest to be awarded on the decretal amount.
3. Adjustment of admitted liability of Pravinlal towards the partnership firm in the sum of Rs. 4,13,364.24 paise.

Summary:

Point No. 1: Determination of Quantum of Mesne Profits

The liability to pay mesne profits is not disputed, only the amount payable is contested. The High Court appointed a Commission to determine the mesne profits, which reported a sum of Rs. 33,32,847.83. The High Court, after reviewing the Commission's report and other relevant materials, determined the total mesne profits as Rs. 39,41,920/-. The Supreme Court found no reason to differ with the High Court's findings and accepted the quantum of mesne profits determined by the High Court.

Point No. 2: Rate of Interest

The original plaint claimed interest at 6% per annum. The High Court allowed an amendment to claim interest at 13% per annum in para 18(c) but not in para 18(b). The High Court awarded interest based on the rate charged by nationalized banks on commercial transactions, which was found to be incorrect. The Supreme Court held that interest should be calculated at 6% per annum on mesne profits on a yearly basis and on the lump sum amount of Rs. 39,41,920/- from 6th August 1986 till realization. Similarly, for the decree for accounts as per para 18(b) of the plaint, interest at 6% per annum on Rs. 1,23,111.37 from 5th May 1969 till realization was deemed appropriate.

Point No. 3: Adjustment of Admitted Liability

The appellants argued for the adjustment of Rs. 4,13,364.24 paise liability of Pravinlal towards the partnership firm. The High Court found that this amount had already been adjusted. The Supreme Court upheld the High Court's findings, noting that the adjustment had been made as far back as 1972.

Conclusion:

The appeals were allowed to the extent of modifying the rate of interest awarded by the High Court. The decree for accounts and mesne profits was modified to award interest at 6% per annum instead of 13%. The Supreme Court upheld the High Court's findings on the quantum of mesne profits and the adjustment of Pravinlal's liability. The appeals were disposed of with no order as to costs.

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