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Understanding the Court’s Authority to Instruct Mortgagees to Pay Mesne Profits: A Look into the Code of Civil Procedure, 1908

The subject of mesne profits as it relates to mortgagees can be a complex one to grasp. Our team of legal experts at SimranLaw will take you through this intricate area of the law, highlighting key aspects of the Code of Civil Procedure, 1908 and relevant case laws for better understanding.

Key Elements

• Definition of Mesne Profits
• Role and authority of the court
• Relevant provisions in Code of Civil Procedure, 1908
• Necessary case laws and judgments

Definition of Mesne Profits

According to Section 2(12) of the CPC, mesne profits refer to those profits which a person in wrongful possession of property actually received or could have received with due diligence.

Role and Authority of the Court

1. The court has the jurisdiction and authority to instruct mortgagees to pay mesne profits to the rightful owner of the property.
2. This authority is underscored and guided by provisions in the Code of Civil Procedure, 1908.

Relevant Provisions in Code of Civil Procedure, 1908

Sections 2(12), 51(b), 52, and 144 of the Code of Civil Procedure, 1908 form the basic framework guiding the Court’s authority on this matter.

• Section 2(12): Defines mesne profits
• Section 51(b): Discusses how the court can enforce payment of money
• Section 52: Concerns liability during pendency of suits
• Section 144: Details about application for restitution

Relevant Case Laws and Judgments

1. M/s. U.P. Cooperative Federation Ltd. vs. Singh Engineers & Contractors: The Supreme Court held that mesne profits can be claimed in execution proceedings under Order XXI Rule 12 CPC after a decree for possession.
2. Renuka vs. State Of Karnataka: The High Court of Karnataka confirmed the concept that a mortgagee in possession has to account for all profits or the rent that he could have collected with due diligence.
3. Sardar Govindrao Mahadik & Anr vs Ramchandra & Ors: This case reasserted the right of courts to order mesne profits in cases where the property has been wrongfully held.

We hope after reading this article, readers will have a better grasp of the power of the courts in matters related to mesne profits and mortgagees.