Introduction
“Mesne Profits pronounce Mean Profits”. In
law, there are compensation against illegal possession, claiming the
compensation is primary right of actual owner of the immovable property. The
term “Mesne Profit” related to the damages or compensation recoverable from a
person who has a wrongful possession of immovable property. Mesne profits are
included in following cases, the cases are as, the cases related to Rent,
Lease, Mortgage, Lease at Will, Redemption and Foreclosure etc.
Definition
“Mesne
Profits” define under section 2(12) of the code of civil procedure, 1908. In
following words.
“Mesne
Profits of property means 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”.
Object
Every
person has a right to possess his property. And when he is deprived of such
right 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
mesne profits are thus a compensation paid to the real or actual owner.
Case Law
Lucy Kochuvareed v/s. V.P.
Mariappa Gounder, (1979)3, SCC 150 at p. 159: AIR 1979 SC 1214 at p. 1219.
The
court held that, 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 even though he was entitled to possession thereof.
Against whom Mesne Profits can be claimed
Wrongful possession of the defendant is the
nature of a claim for mesne profits and the base of the defendant’s liability
therefor.
Case Law
Chittoori v/s. Kudappa, AIR
1965 SC 1325: (1965)2 SCR 661.
The
court held that, as a general rule, a person in wrongful possession and
enjoyment of immovable property is liable for mesne profits. It is very cleared
that mesne profits can be claimed with regard to immovable property only.
Thus,
a decree for mesne profits can be passed against a trespasser, or against a
person against whom a decree for possession is passed, or against a mortgagor
in possession of mortgaged property after a decree for foreclosure has been
passed against him, or against a mortgagee in possession of property even after
a decree for redemption is passed, or against a tenant holding over at will
after a notice to quit has been served upon him.
Every
person would be liable to pay mesne profits to the plaintiff, where the
plaintiff is dispossessed by several persons. Even though he (plaintiff) might
not be in actual possession or the profits might not have been received by him.
Case Law
Fateh Chand v/s. Balkishan
Dass, AIR 1963 SC 1405 at pp. 1412-13: (1964)1 SCR 515;
The
court held that, the court in such cases may hold all the trespassers jointly
and severally liable, leaving them to have their respective rights adjusted in
a separate suit for contribution; or may ascertain and apportion the liability
of each of them.
Assessment
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 justice of the case”.
Case Law
Harry Kempson Gray v/s.
Bhagu Main, AIR 1930 PC 82.
The court held that, in assessing
the mesne profits, usually the court will take into account what the defendant
has gained or reasonably might have gained by his wrongful possession of the
property.
Principles
The
following principles would ordinarily guide a court in determining the amount
of mesne profits:
No
profits by a person in wrongful possession;
Restoration
of status before dispossession of decree-holder;
And
Use
to which a decree-holder would have put the property if he himself was in
possession.
Illustration
wrongful possession does not include a person
who makes investment in the wrongful possession of the property and makes a
profit on the property for the purpose of improving the property.
X
and Y are two persons. X has rented house to Y, on the basis of agreement. Y is
not ready to leave the house after the agreement is over. Y started a shop in
the room of the house with new investment of his own and whatever profit he
made from those shop is not acceptable to “Mesne Profit”.
Interest
Interest is an integral part of mesne profits
it has to be allowed in the computation of mesne profits itself. The court
ruled that the rate of interest was fixed, the limitation of rate of interest
is shall not exceed 6% (Six Percent) per annum. Such interest can be allowed
till the date of payment.
Deduction
While awarding mesne profits, the court may
allow deduction to be made from the gross profits of the defendant in wrongful
possession of the property, such as Land Revenue, Rent, Cesses, Cost of Cultivation
etc.
Limitation
The limitation period of Mesne Profits is of 3
years only. Defendant has been given 3 years’ time to give Mesne Profits to
plaintiff otherwise it will get barred.
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