Introduction

Mesne profits are nothing more than a fee that a person in unlawful possession of another’s property must pay to the owner of the property for such wrongful occupation. Section 2(12) of the Civil Procedure Code, 1908 (CPC) defines mesne profit.

Mesne Profit

• As per Section 2(12) of CPC, mesne profits of property mean those profits which the person in wrongful possession of such property actually received or might with ordinary diligence have received therefrom, together with interest on such profits, but shall not include profits due to improvements made by the person in wrongful possession.
• It is a compensation paid to the real owner.

Objectives

• Every person has a right to possess his property. And when he is deprived of such property by another person, he is not only entitled to restoration of possession of his property, but also damages for wrongful possession from that person.
• The object of awarding a decree for mesne profits is to compensate the person who has been kept out of possession and deprived of enjoyment of his property.

Principles

• The following principles would guide a Court in determining the amount of mesne profits.
  • No profit by a person in wrongful possession.
  • Restoration of status before dispossession of decree holder.
  • Use to which a decree holder would have put the property if he himself was in possession.

Against Whom Mesne Profits can be Claimed

• Wrongful possession of the defendant is the essence of a claim for mesne profits and the very foundation of the defendant’s liability, therefore.
• A person in wrongful possession and enjoyment of immovable property is liable for mesne profits.
• Mesne profits can be claimed with regard to immovable property only.
• Where a plaintiff is dispossessed by several persons, every one of them would be liable to pay mesne profits to the plaintiff.

Assessment of Mesne Profits

• Mesne profits being in the nature of damages, no invariable rule governing their award and assessment in every case can be laid down and the Court may mould it according to the case.
• In assessing the mesne profits, usually the Court will take into account what the defendant has gained by his wrongful possession of the property.
• The test to ascertain mesne profits is not what the plaintiff has lost by being out of possession but what the defendant gained or might reasonably and with ordinary prudence would have gained by such wrongful possession.
• While awarding mesne profits, the Court may allow deductions to be made from the gross profits of the defendant in wrongful possession of the property.

Case Law

• In the case of Phiraya Lal Alias Piara Lal v. Jia Rani and Anr. (1973), the Delhi High Court interpreted the meaning of the term “mesne profit” by observing that when a party claims damages to recover the loss resulted from wrongful occupation of immovable property by a trespasser that originally belonged to the party then such damages will be known as mesne profits.