Mesene Profits

 Mesene Profits

Section 2 (12) of Code of Civil Procedure defines 'Mesne Profit' to mean profits which the person in wrongful possession of the property actually received or might have received with ordinary diligence or have received together with interest on such profits. However, such profit shall not include profits arising due to improvements made by the person in wrongful possession. Mesne profits can be claimed with regard to immovable property only. For example, 'X' is in wrongful possession of 'Y's' property. By being in such possession, he receives profits. Such profits are called mesne profits.

Object: Every person is entitled 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. Thus, 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.

In Lucy Kochuvareed v. P. Mariappa Gounder, (1979) 3 SCC 150 , court decided tha a person in wrongful possession and enjoyment of immovable property is liable to pay mesne profit. He can be trespasser or a person against whom a decre for possession is passed or against a mortgagor in possession after a foreclosure decree is passed against him, etc If the plaintiff is dispossessed by several persons, every one of them would be liable to pay meme profit to the plaintiff even though he might not be in actual possession of the property if it is proved that such dispossession was a concerted effort on every person's part. 

In Harry Kampson Grag v. Bhagu Miya, AIR 1930 PC 82 , court did the test to ascertain mesne profit is not what the plaintiff has lost by being out of possession but what the defendant gained or might reasonably and with ordinary prudence have gained by such wrongful possession. For example, when a person in wrongful possession plants indigo on the land and it is proved that a prudent agriculturist would have planted wheat or sugarcane, the mesne profit should be assessed on the basis of those more profitable crops. 

Principles: The court shall be guided by following principles while deciding mesne profit:

1. Profit by a person in wrongful possession.
2. Restoration of status before dispossession of decree-holder.
3. Use to which a decree-holder would have put the property if himself was in possession.

Deductions: Mesne profits should be net profits and the court may allow deductions to be made from the gross profits of the defendant, such as land revenue, cess, cost of cultivation, etc.