Rental or mesne profits arise only upon unlawful occupation: SC


Justices Augustine George Masih and C.R. Gavai on a judgement dated 15 October 2025, Nashik Municipal Corporation v. Landowner partly allowed the appeal challenging the High Court’s decision reducing compensation for land acquisition under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 reiterating that rental or mesne profits arise only upon unlawful occupation.

The dispute concerned 37 Ares of land in Nashik that had been reserved for public purposes under the MRTP Act, 1966, and partially acquired decades earlier. The remaining land was used by the Corporation without formal acquisition. After multiple rounds of litigation, the land was finally acquired in 2017, with the SLAO awarding ₹8.69 crore compensation, later enhanced by the Reference Court to ₹20.20 crore along with ₹238 crore as “rental compensation.” The High Court quashed the enhancement, restoring the SLAO’s award.

Before the Supreme Court, the appellant contended that the High Court erred in rejecting the comparable sale deeds relied on by the Reference Court and that the denial of rental compensation was unjust. The Court agreed partly, holding that under Section 26 of the 2013 Act, the Collector must determine market value based on average sale prices of similar lands and not on ready-reckoner rates. It found the Reference Court’s reliance on six sale instances sound and restored the higher compensation of ₹20.20 crore with 9% interest.

However, the claim of rental compensation was rejected. The Court observed that no evidence showed unlawful possession by the Corporation before the appellant’s purchase in 2011, and the original owner retained control over the property. Relying on R.L. Jain v. DDA (2004) 4 SCC 79, it held that rental or mesne profits arise only upon unlawful occupation. Nevertheless, invoking equitable jurisdiction under Section 28 (“seventhly”), the Court directed the Corporation to pay 8% interest on the purchase amount of ₹1.17 crore for the period between the sale deed and the award.

Accordingly, the appeal was partly allowed. The enhanced compensation was restored, but rental compensation was disallowed. The adverse observations and cost of ₹10 lakh imposed by the High Court were set aside.

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Legal Interns | Legal Savvy (Loan Settlements & Debt Resolution)

Legal Interns | Legal Savvy (Loan Settlements & Debt Resolution)

Organization Overview:
Legal Savvy is a forward-looking company specializing in loan settlements, debt resolution, and financial dispute management. The organization focuses on delivering expert legal and compliance-driven solutions to individuals, startups, and corporates navigating complex financial disputes. Legal Savvy combines legal expertise with industry insights, providing interns with a practical understanding of financial laws, banking regulations, and debt resolution processes.

Location:

  • Remote (Candidates must be residents of Andhra Pradesh or Telangana)

Position / Duration:

  • Legal Internship – Loan Settlements & Debt Resolution
  • Duration: 3 months
  • Open to final-year law students
  • Opportunity for Pre-Placement Offer (PPO) based on performance

Eligibility Criteria:

  • Final-year students pursuing BBA LL.B. (5-year integrated course) or LL.B. (3-year course)
  • Strong knowledge of contract law, consumer protection laws, RBI guidelines, and financial dispute resolution
  • Excellent legal research, drafting, and analytical skills
  • Proficiency in MS Office and legal research databases
  • Fluency in Telugu (spoken and written) is mandatory
  • Strong written and verbal communication skills
  • Ability to handle client interaction professionally
  • Business development aptitude is considered a plus

Key Responsibilities:
Interns will actively participate in legal and financial processes, gaining hands-on exposure to debt resolution cases and client advisory. Responsibilities include:

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This internship is designed to offer a comprehensive learning experience, combining legal drafting, dispute resolution, client handling, and real-world financial law exposure. Interns will gain confidence in interacting with stakeholders, drafting enforceable legal agreements, and applying theoretical knowledge to practical scenarios.

Learning Outcomes:
By the end of the internship, interns will be able to:

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Number of Positions Available: 5–7 (depending on applicant suitability)

Stipend & Benefits:

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  • Hands-on experience in legal documentation, client interactions, and debt resolution processes
  • Opportunity for Pre-Placement Offer (PPO) for high-performing interns
  • Certificate of Internship upon successful completion, highlighting skills acquired

Application Process:
Interested candidates should submit a detailed CV along with a brief cover letter explaining their interest in financial law, contract law, or debt resolution. Candidates must highlight prior relevant internships, academic projects, or research experience in financial or legal domains. Applications demonstrating enthusiasm, attention to detail, and strong motivation will receive priority consideration.

How to Apply:
Send your CV and a brief cover letter to: hr@thelegalsavvy.com

  • Subject line: “Application for Legal Internship – [Your Name]”

Application Deadline: Rolling Basis.

Final-year students pursuing BBA LL.B. (5-year integrated course) or LL.B. (3-year course)
Strong knowledge of contract law, consumer protection laws, RBI guidelines, and financial dispute resolution
Excellent legal research, drafting, and analytical skills
Proficiency in MS Office and legal research databases
Fluency in Telugu (spoken and written) is mandatory
Strong written and verbal communication skills
Ability to handle client interaction professionally
Business development aptitude is considered a plus


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