Mesne profits are the profits that a person in wrongful possession of immovable property actually received or might with ordinary diligence have received from the property, together with interest on such profits. Under Indian law, mesne profits are defined in Section 2(12) of the Code of Civil Procedure, 1908, and an inquiry into mesne profits may be directed under Order XX Rule 12 when the court passes a decree for possession.
Legal definition
Section 2(12) of the Code of Civil Procedure, 1908 provides the statutory definition:
Section 2(12): "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 therefrom, together with interest on such profits, but shall not include profits due to improvements made by the person in wrongful possession.
The key elements of this definition are: (i) the person must be in wrongful possession of the property; (ii) the profits are those actually received or receivable with ordinary diligence; (iii) interest on such profits is included; and (iv) profits attributable to improvements made by the person in wrongful possession are excluded.
Order XX Rule 12 CPC provides for the procedure for inquiry into mesne profits. Where a suit is for possession of immovable property and for rent or mesne profits, the court may pass a decree for possession and direct an inquiry into the amount of rent or mesne profits.
How courts have interpreted this term
Mahant Narayana Dasjee v. Tirupathi Devasthanam [AIR 1965 SC 1231]
The Supreme Court held that under Section 2(12) CPC, interest is an integral part of mesne profits and must be allowed in the computation of mesne profits. The Court established that mesne profits are not limited to the actual income received but extend to what the person could have received with ordinary diligence.
Union of India v. Banwari Lal and Sons [(2004) 6 SCC 280]
The Supreme Court distinguished between mesne profits and fair rent. If a person's possession was lawful initially but became wrongful subsequently (for example, a tenant whose lease expired but who continued in occupation), the owner is entitled to mesne profits only from the date the possession became wrongful. Before that date, only fair rent is payable.
Marshall Sons & Co. v. Sahi Oretrans (P) Ltd. [(1999) 2 SCC 325]
The Supreme Court held that mesne profits can be claimed for the period between the institution of the suit and the date of delivery of possession in execution of the decree. The court can direct an inquiry into mesne profits even if the specific period was not mentioned in the plaint, provided the claim for mesne profits was part of the suit.
Why this matters
Mesne profits represent an important remedy for property owners who have been wrongfully dispossessed or whose property has been wrongfully occupied. Without this remedy, a person who unlawfully occupies another's property would enjoy the fruits of that property without consequence until the litigation concludes — which in India can take years or even decades. Mesne profits ensure that the wrongful possessor does not benefit from the delay in judicial proceedings.
For practitioners, the quantification of mesne profits presents both opportunities and challenges. The court must assess what the property could have yielded with ordinary diligence — this may include rental income, agricultural yield, or commercial profits depending on the nature of the property. The Supreme Court has held that some "honest guesswork" is permissible in calculating mesne profits when precise figures are unavailable, but the assessment must be based on evidence and reasonable estimation.
A critical procedural point is that the claim for mesne profits must be specifically prayed for in the plaint. The Supreme Court has held that an inquiry under Order XX Rule 12 can only be directed if the plaintiff has specifically sought mesne profits. Courts cannot suo motu direct an inquiry without a prayer to that effect.
Related terms
Related concepts:
Broader concepts:
Frequently asked questions
For what period can mesne profits be claimed?
Mesne profits can be claimed from the date of wrongful possession until the date of delivery of actual possession. Under Article 55 of the Limitation Act, 1963, the limitation period for filing a suit for mesne profits is three years, but the inquiry for past mesne profits can cover the entire period of wrongful possession.
Are mesne profits taxable as income?
The Supreme Court has held that mesne profits received are assessable to income tax. They are treated as income from property or as compensation received for wrongful deprivation of property, depending on the nature and circumstances of the case.
Can mesne profits be claimed without a suit for possession?
Ordinarily, mesne profits are claimed as ancillary relief in a suit for recovery of possession of immovable property. However, if a decree for possession has already been passed, a separate suit or application for mesne profits may be maintainable for the period not covered by the earlier decree.
This entry is part of the Veritect Indian Legal Glossary, a comprehensive reference of Indian legal terminology grounded in statutory text and judicial interpretation.
Last updated: 2026-03-27. Veritect provides this content for informational purposes and does not constitute legal advice.