Mesne profits refer to the fee paid by a wrongful possessor of a property to the rightful owner of the same, when the wrongful possession accumulates profits and benefits to the accused. Section 2(12) of the Code of Civil Procedure, 1908 defines mesne profits. However, benefits gained after the improvisation of a property by the accused does not account to mesne profits.
Mesne profits include not only what the rightful owner lost, but also the damages, benefits and profits gained by the accused during the period under possession, provided the profits were made without improvisation. The amount for mesne profits determined by the court is based on various factors such as the current market value of the property, duration of possession and other relevant circumstances.
To file a claim for mesne profits under CPC, the possession of the property must be unauthorised and unlawful, and the person must have received benefits during the possession. Usually, mesne profits are claimed against trespassers, tenants who refuse to vacate after being asked to, mortgagers enjoying the possession of a mortgaged property after being served with a foreclosure and any other person against whom a decree of possession has passed.
However, there are certain circumstances where mesne profits cannot be claimed. These circumstances include possession of a joint family property, wherein if both the appellant and the respondent are the joint owners of a property, no claim for mesne profits would be entertained. An absence of a court order or a decree would lead to a rejection for mesne profits. A court order authorising the same is a prerequisite. Moreover, the burden of proof lies on the appellant to prove that they are the rightful owner of the property, and evidence proving that the defendant has claimed possession of a property in an unlawful manner and has enjoyed benefits.
To conclude, mesne profits can be considered a form of compensation to restore the rights of an owner whose property was unlawfully used.