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Mesne Profits
« »08-Apr-2025
Source: Supreme Court
Why in News?
A bench of Justice Abhay S Oka and Justice Ujjal Bhuyan held that relationship of landlord and tenant comes to an end only when decree of eviction is passed.
- The Supreme Court held this in the case of Amritpal Jagmohan Sethi v. Haribhau Pundlik Ingole (2025).
What was the Background of Amritpal Jagmohan Sethi v. Haribhau Pundlik Ingole (2025) Case?
- In the present facts, appellant was the tenant and landlord was the respondent.
- The Respondent filed a suit for eviction on various grounds under Maharashtra Rent Control Act, 1999.
- A decree of possession was passed by the Trial Court and the appellant was evicted.
- The issue in this case was regarding direction issued in the operative part of the decree which reads as: “ Inquiry into future mesne profit under Order XX Rule 12(1)(c) of Code of Civil Procedure be made from the date of suit till delivery of vacant peaceful possession of the suit property by the defendant to the plaintiff.”
- Thus, the matter was before the Supreme Court.
What were the Court’s Observations?
- The Court held that it is a settled position of law that the relationship of tenant and landlord comes to an end only when the decree of eviction is passed.
- The Court modified the operative part of the decree which read as follows:
- Inquiry into future mesne profit under Order XX Rule 12(1)(c) of Code of Civil Procedure, 1908 be made from 29th March, 2014 till the delivery of the vacant possession of the suit property by the defendant to the plaintiff.
- The Court thus allowed the appeals subject to the above modification.
What is Mesne Profits under the Code of Civil Procedure, 1908?
- Section 2 (12) - Definition:
- Mesne profits are money owed by someone who wrongfully possessed property to the rightful owner.
- This money includes:
- Profits actually received from the property while wrongfully possessing it
- Profits that could have been reasonably earned with ordinary effort
- Interest on these profits
- Profits that came from improvements made by the wrongful possessor are excluded.
- Order XX Rule 12 - Decree for Possession and Mesne Profits:
- Rule 12 (1) applies to lawsuits where someone is trying to recover possession of real property (land, buildings) AND seeking rent or mesne profits.
- The Court can issue decree covering:
- Possession of the property
- Money owed before the lawsuit was filed
- Money owed during and after the lawsuit
- The court can order that the rightful owner gets back possession of the property.
- Pre- law suit rent : The court can either:
- Directly state the amount of rent owed from before the lawsuit began, or
- Order an investigation to determine this amount
- Pre-law suit mesne profits : The court can either:
- Directly state the amount of mesne profits owed from before the lawsuit began, or
- Order an investigation to determine this amount
- Future money owed: The court can order an inquiry into rent or mesne profits starting from when the lawsuit was filed until one of these happens first:
- The rightful owner gets possession back
- The wrongful possessor gives up possession with proper legal notice
- Three years pass from the date of the court's decree