Mesne Profits

Meaning 

• Mesne profits are of compensatory nature for wrongfully possessing of property by the defendant.
• They represent the value of the benefits (income/profit) that the wrongdoer obtained (or could have obtained) during the period of wrongful possession.
• They exclude any profits that arose because the wrongdoer made improvements on the property.

Essential Ingredients

For mesne profits to arise, the following conditions must be satisfied:

1. Wrongful Possession
   • The possession must be without legal authority.
   • Possession can be wrongful even if initially lawful (e.g., tenancy expired but tenant did not vacate).
2. Profits Derived or Capable of Being Derived
   • Profits actually received by the wrongdoer.
   • Profits the wrongdoer could have received with reasonable diligence.
3. Connection to Property
   • Profits must arise from the property itself (rent, produce, etc.), not from external sources.
4. Exclusion of Improvements
   • If profits are due to the wrongdoer’s own improvements, those are excluded.
5. Interest
   • Statutory definition includes interest on mesne profits, generally from the date of possession till payment.

Distinction Between Mesne Profits and Damages

Aspect	Mesne Profits	Damages
Basis	Compensation for wrongful possession of immovable property.	Compensation for any loss caused by wrongful act, not necessarily related to property.
Source	Arises under Section 2(12) CPC.	Arises under general law of torts or contract.
Interest	Statutorily included.	Discretionary.

Relevant Provisions in CPC

• Section 2(12) – Definition is given.
• Order 20 Rule 12 – The court may pass decree for possession of property and mesne profits.
  • Decree for possession of property,
  • Decree for mesne profits can be before the filing of suit and till the actual delivery of possession to its real owner.

Types of Mesne Profits

1. Past  – From the date of wrongful possession began to the date of filing the suit.
2. Future – From the date of filing the suit till the actual delivery of possession to its real owner.
3. Interim  – Sometimes awarded during pendency of litigation, especially when wrongful possession continues.

How Courts Determine Mesne Profits

Courts generally consider these factors to calculate the mesne profits:-

• Fair rental value of the property.
• Income from crops, minerals, rent from sub-tenants, etc.
• Potential earnings if property was used with reasonable diligence.
• Market rate at the relevant period, not at the date of judgment.

Note: Burden of proof lies on the plaintiff to show probable income.

Landmark Case Laws

(a) Fateh Chand v. Balkishan Das, AIR 1963 SC 1405

• Principle: Mesne profits are in the nature of compensation for wrongfully possessing the property, and interest is also expressely included in the mesne profits under Section 2(12) of the Code of Civil Procedure, 1908.

(b) Lucy Kochuvareed v. P. Mariappa Gounder, (1979) 3 SCC 150

• Principle: Even a lawful possessor can become a wrongful possessor if they continue possession after termination of legal right; such possession gives rise to liability for mesne profits.

(c) Phiraya Lal v. Jia Rani, AIR 1973 All 528

• Principle: Measure of mesne profits is the amount of rent which the owner might have obtained by letting the property.

(d) Mohd. Amin v. Vakil Ahmad, AIR 1952 SC 358

• Principle: Mesne profits include those which the wrongdoer might with ordinary diligence have received, not just what he actually earned.

(e) Lilawati v. State of Bombay, AIR 1957 SC 521

• Principle: Mesne profits are awarded to indemnify the true owner for loss of income from property during wrongful possession.

(f) M. L. Bhatia v. Union of India, AIR 1990 Delhi 13

• Principle: If market rent is ascertainable, it can be taken as the basis for mesne profits even without direct evidence of actual income earned.

Practical Example

If a tenant’s lease expired on 1 Jan 2020 but they stayed without consent until 1 Jan 2023, the landlord can claim:

• Mesne profits for 3 years (fair rental value × months of possession), plus
• Interest on those profits till the date of payment.

Key Takeaways

• Wrongful possession is the root requirement.
• Court awards them under Order XX Rule 12 CPC.
• Interest is part of mesne profits by definition.
• Courts rely heavily on market rental value and reasonable diligence to assess profits.
• Landmark cases have clarified scope, measure, and inclusion of interest.

Also read:

1. writ-of-mandamus
2. article-15-of-indian-constitution
3. writ-of-certiorari