INTERPRETATION OF MESNE PROFIT

As per the Code of Civil Procedure Section 2 (12) read as follows"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 there from, together with interest on such profits, but shall not include profits due to improvements made by the person in wrongful possession;

A Division Bench of Hon’ble High Court of Karnataka in Thammegowda V/s Siddegowda (ILR 1991 KAR 4506) held that “In a suit for partition and separate possession, the question of mesne profits does not arise. The coparcener who will be in possession of the joint family property will be liable to account for the profits derived from the joint family property in excess of his share. The possession of a coparcener of the joint family property is not unlawful because his right extends over the entire joint family property until it is divided by metes and bounds. The possession of a coparcener of the joint family property until it is divided by metes and bounds does not become unlawful so as to make him liable for mesne profits. Therefore, the question of mesne profits does not arise. Of course, he has to account for the income of the share of the plaintiff from the date of the suit till the date of delivery of possession. Therefore, the trial court is not justified in directing that the plaintiff is entitled to future mesne profits from the date of suit. It ought to have directed that the plaintiff is entitled to accounts of the profits of his share from the date of the suit tilt the date of delivery of possession.”.

Mesne profit shall be awarded from the date of institution of the suit till delivery of possession as held by Hon’ble Supreme Court in AIR 1977 SC 223 between Dalhousie Properties Limited V/s Surajmull Nagarmull. The rate of interest shall be reasonable. To that purpose, Section 34 of the Code of Civil Procedure is applicable. The interest shall be awarded on lump sum amount on mesne profit amount. The interest shall not be exceed @ 6% per annum (AIR 1965 SC 1231 (Mahanth V/s TT Devastanam).