Mesne Profits

 2. MESNE PROFITS:

Meaning: The expression has the same meaning in Section 2(12) and 144 of the Code, it means those profits to which a person is entitled but from which he has been kept out by the defendant. Mesne profits can be claimed only regarding immovable property and not in regard to such property which cannot be deemed to be immovable property.

Mesne Profits of Property: Mesne profits of property also include 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. The expression, however, does not include the profits due to improvements made by the person in wrongful possession.

Object of Awarding Such Profits: The main object is to compensate the person entitled to be in possession of the property. A person who is entitled to actual possession can claim mesne profits. The very foundation of the cause of action for mesne profits is wrongful possession of the defendant. Thus, for example, the possession of a mortgagee after the date of a foreclosure decree against him is a wrongful possession, Similarity, the possession of vendee under a conveyance, which is voidable for fraud of under influence is a wrongful possession. 

Measure of Mesne Profits: The measure of mesne profits is not what the plaintiff has lost. The measure would be, what the defendant has gained by his wrongful possession, or what he might reasonably have gained by such possession. Thus, if the person charged has let the land to another, the rent which has actually received would be the mesne profits for which he would be liable unless it is provided that a higher rent could have been obtained with due diligence.

Possession of One Co-Sharer: The possession of one co-sharer is in law, the possession of another co-sharer also and therefore there can be no suit for mesne profits amongst co-sharers. If a co-sharer is excluded from the share to which he is entitled, he can claim an account of the profits.

Principles: The principles which would guide a court in determining whether mesne profits be allowed or not, are as follows:

(1) a wrongful possessor should not get profit by his possession.
(2) restoration of status before dispossession of the rightful owner.
(3) use to which the rightful owner would have put the land if he was himself in possession.

Decree for Mesne Profits: A decree for mesne profits cannot be passed against a person who is not in possession of the property at all. Same would be the case of a person who is in rightful possession of the property. Such a person is not liable for the mesne profits.

Interests on Such Profits: A person claiming mesne profits shall also be entitled to interest on the mesne profits up to the date of plaint as part of mesne profits. It has been held that interest is an integral part of mesne profits and has therefore, to be allowed in computation of mesne profits itself. What rate of interest shall be allowed, that always depend upon the discretionary powers of the court as there is no question of any contractual rate or any particular rate fixed by statute.

Under Section 2(12) of the Code: Under Section 2(12) of the Code which contains the definition of 'mesne profits', interest is an integral part of mesne profits and has, therefore, to be allowed in the computation of mesne profits itself. That proceeds on the theory that the person in wrongful possession appropriating income from the property himself gets the benefit of interest on such income.