Mesne Profit Valuation

If means profits of land acquired by a tenant in wrongful possession from the time that the wrongful possession commenced to the trial of an action of ejectment brought against him

A person becomes entitled to mesne profits only when he has right to obtain possession but another person whose occupation is unauthorised keeps him depriving of that possession, but if excludes earned due to improvement in the property made by the person in unlawful possession of such property

Rent collected by trespasser is mesne profit but if he makes improvement then rent due to improvement is not mesne profit

Means profit = profit + interest on such profit

The rate of interest payable is not fixed and if depends upon the discretion of the court subject to the limitation that if may not exceed 6 % per annum.

This amount is the total of mesne profit calculated on yearly basis ie on the amount of mesne profit which could be taken to be due to the plaintiff at the end of each successive year.

Deductions from mesne profits

1) charge of collecting rent

2) the costs of cultivating and reaping the crops

3) public charges made from the preservation of the property ie Government Revenue

Mesne Profits – against whom can be ordered

1) tenants in a suit for recovery of possession

2) persons against whom a decree of possession of immovable property was passed

3) trespass

4)mortgagors in possession of mortgaged property against whom a decree of foreclosure was passed

5) mortgagors in possession of property after a decree for redemption was passed

Mesne profits arises when

1) suit for ejectnent or recovery of possession of immovable property from a person in possession without title, together with a claim for past or past and future mesne profits

2) a suit for partition by one or more tenants in common against others with a claim for account of past or past and future profits

3) suits for partition by a member of joint Hindu family with a claim for an account from the manager

Principles applied to award mesne profits

1) the profit to be taken into account is that made by a person in wrongful possession

2) the aim should be restoration of status before dispossession of the decree holder

3) the use to which the decree holder may have put the property if he himself was in possession is relevant only as evidence of what the defendant might with reasonable diligence have received

In case of mesne profits, the burden of proof rests on the plaintiff and that mesne profits being in the form of compensation, before claiming mesne profits the plaintiff have to establish before the court that he was lawful owner of the property and he was deprived of it by wrongful possession of the defendant

The present rental value of the property would determine the rate at which mesne profits were to be awarded to the Owner of the building against a person in wrongful possession thereof

Rent permissible under rent control act would not necessarily determine mesne profits

Section 56 of India evidence act – Facts judicially noticeable need not be proved.

Compiled by

Avinash Kulkarni