When we study civil law, one important concept we often come across is Mesne Profits. This is a legal term used when someone is in wrongful possession of property and enjoys benefits from it. Courts award mesne profits to make sure that the rightful owner is compensated for the loss they suffered because someone else occupied and used their property unlawfully.
Meaning of Mesne Profits
According to Section 2(12) of the Code of Civil Procedure, mesne profits are the profits that a person in wrongful possession of a property either actually earned or could have earned with reasonable care. These also include interest on such profits. However, it does not include any profits that come from improvements made by the wrongful possessor, such as new construction or additions to the property.
The basic rule is that anyone who wrongfully possesses and enjoys immovable property has to pay mesne profits. For example, if a property is rented out and someone without proper title collects the rent, the owner can claim mesne profits equal to the rent amount that was due. However, courts generally allow only the standard rent and not the maximum possible rent.
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Judicial Interpretation
Courts have given different judgments to explain how mesne profits should be calculated. In Fateh Chand v. Balkishan Das (1963), the Supreme Court held that mesne profits are in the nature of damages, so the amount will vary from case to case depending on the facts. In Dakshina v. Saroda (1894), it was said that mesne profits should be calculated from gross profits, not net profits.
Another important case is Lucy Kochuvareed v. Mariappa Gounder (1979), where the Supreme Court clarified that liability to pay mesne profits is linked to actual possession and enjoyment of the property. Even if several people are jointly responsible for dispossessing the owner, each of them may be held liable.
When Mesne Profits Arise
The courts have identified situations where mesne profits may be claimed, such as:
- A suit for recovery of immovable property along with past or future mesne profits.
- A partition suit by tenants in common or members of a joint family where profits are to be shared.
- Cases of unlawful possession without any title.
Deductions Allowed
While calculating mesne profits, certain deductions are permitted. These include expenses for collecting rent, costs of cultivation or harvesting crops, and public charges like government revenue for maintaining the property.
Against Whom Mesne Profits Can Be Claimed
Mesne profits can be ordered against:
- Tenants in possession when the landlord wins a decree for recovery.
- Trespassers or unlawful occupiers.
- Mortgagors who continue to occupy property after foreclosure or redemption decrees.
Principles for Awarding Mesne Profits
When awarding mesne profits, courts apply a few guiding principles:
- A wrongful possessor should not make any profit.
- The rightful owner should be restored to the position they would have been in had they not been dispossessed.
- The possible use of property by the owner is relevant only to assess what the wrongful possessor might reasonably have earned.
Mesne Profits and Order 20 Rule 12 CPC
Under Order 20 Rule 12, courts can order an inquiry into mesne profits before passing a final decree. However, in Ganapati Madhav Sawant v. Dattur Madhav Sawant, the Supreme Court held that if the plaintiff has not specifically asked for mesne profits, the court cannot grant them on its own. Orders related to appointment of a commissioner for assessing future mesne profits are not appealable, but the final decree determining the amount can be appealed.
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Conclusion
Mesne profits ensure that no one benefits from occupying someone else’s property unlawfully. They serve as compensation to the rightful owner and are calculated based on the actual or possible profits earned during wrongful possession. Since every case is different, courts decide the amount based on fairness and justice.
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