Showing posts with label future mesne profits. Show all posts
Showing posts with label future mesne profits. Show all posts

Saturday, 7 September 2024

How the court should deal with issue of grant of mesne profits under different types of suits?

 It is necessary at the outset to distinguish between three different types of cases in which a question of profits or mesne profits might arise. (1) Suits for ejectment or recovery of possession of Immovable property from a person in possession without title, together with a claim for past or past & future mesne profits. (2) Suits for partition by one or more tenants-in-common against others with a claim for account of past or past & future profits. (3) Suits for partition by a member of a joint Hindu family with a claim for an account from the manager. In the first case, the possession of the defts. not being lawful, the plff. is entitled to recover "mesne profits" as defined in Section 2, Clause (12), Civ. P. C., such profits being really in the nature of damages. In the second case, the possession & receipt of profits by the deft, not being wrongful the plff's. remedy is to have an account of such profits making all just allowances in favour of the collecting tenant in common. In the third case, the plff. must take the joint family property as it exists at the date of the demand for partition and is not entitled to open up past accounts or claim relief on the ground of past inequality of enjoyment of the profit, except where the manager has been guilty of fraudulent conduct or misappropriation. The plff. would, however, be in the position of a tenant-in-common from the date of severance in status & his rights would have to be worked out on that basis. {Para 3}


4. Order 20, Rule 12, Civil P. C. deals with the first class of suit above referred to, while Order 20, Rule 18, Ideals with the second & the third categories. In view, however, of the considerable reliance placed on Order 20, Rule 12, Civil P. C. in Ghulusum Bivi v. Ahmadsa Rowther, 42 Mad. 296in dealing with the right of a plff. to profits accruing during the pendency of a partition suit, it is desirable to consider the scope of this provision. A claim for possession & a claim for past mesne profits have been held to be based on different causes of action, at any rate, in the decisions of this Court. Order 2, Rule 4, Civil P. C. however permits their joinder in one suit. There is a material difference between a claim for past & a claim for future mesne profits. Order 7, Rule 2, Civil P. C. & Section 7 Sub-section (1), Court fees Act, require that the amount of past mesne profits claimed should be approximately stated in the plaint & ad valorem court-fee should be paid on such amount. These provisions can have no application to future profits, for it is not possible for the plff. to predicate how long the litigation is going to last or give even an approximate statement of the amount of mesne profits that might become payable at the end. The cause of action for future mesne profits is the plff's. being kept out of possession during the suit & arises subsequent to the suit. In empowering Courts to award future mesne profits Order 20, Rule 12, Civ. P. C. makes an exception to the general rule that a plff. can only sue on such cause of action as has arisen on the date of instituting his suit. The object is to avoid the multiplicity of litigation that would result if persons, unlawfully kept out of possession of their lands were obliged to file suits every three years for mesne profits accruing after the institution of a suit in ejectment & during its pendency in the original & appellate Courts. But the plff. could not claim future mesne profits as a matter of right, the cause of action for such profits not having arisen to him at the date of the suit. Hence it is that the power of the Court to award mesne profits subsequent to the suit has been held to be discretionary & a mere omission, as distinguished from a refusal, to grant future mesne profits asked for, has been held not to bar a fresh suit for that relief. Doraiswami v. Subramania, 41 Mad. 188. In re Ekanathalingaswami, I.L.R. (1937) Mad. 284. Section 11, Court-fees Act, (as amended in Madras) requires payment of court-fee on future mesne profits only if the plff. desires to execute the decree awarding him such profits. The Judicial Committee interpreting the provisions of Section 196, Civ. P. C. of 1859 & this Court, construing the corresponding provisions of Order 20, Rule 12 held that whether a plaint contained or not a claim to future profits the Court has the power to grant them under these special provisions, Fakharuddin Mohamed Ashan v. Official Trustee of Bengal, 8 Cal. 178 & Kemgamswami v. Subbamma, 53 Mad. 838. When the Legislature has expressly empowered the Court to grant relief for future mesne profits, that is to say, in respect of a cause of action arising subsequent to the suit, there is no reason to circumscribe this power by importing a qualification that there must have been a specific prayer in the plaint for the recovery of such unascertainable & unpredictable profits. Future mesne profits could, we think, well be awarded as part of the general relief to which a plff. is entitled.

 IN THE HIGH COURT OF MADRAS

FULL BENCH

Civil Revn Petn No. 1695 of 1948

Decided On: 02.02.1951

Babburu Basavayya and Ors. Vs. Babburu Guravayya and Ors.

Hon'ble Judges/Coram:

P.V. Rajamannar, C.J. Vishwanatha Sastri and A.S. Panchapakesa Ayyar, JJ.

Author: P.V. Rajamannar, C.J.

Citation: AIR 1951 Madras 938.

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Saturday, 23 November 2019

How to ascertain court fees in appeal if prayer for mesne profits is either decreed or dismissed?

Consequently for the reasons given above, our opinion on the question referred to this Bench is as follows:--

"If in a suit for past mesne profits, and possession the plaintiff also prays for a decree for future mesne profits then he is neither required to value the relief of future mesne profits nor pay any Court- fees thereon as in such cases he has no existing legal right to claim such future mesne profits and has no cause of action for them on the date of suit. Further, in our opinion, when in such a suit, in Which a prayer for future mesne profits is also made, the Court either decrees or refuses to grant future mesne profits, then in the event of an appeal either by the defendant or by the plaintiff court-fees on such mesne profits which may have be come due from the date of suit till the date of appeal are not payable."

IN THE HIGH COURT OF MADHYA PRADESH

Civil Revn. Nos. 41 of 42 of 1971

Decided On: 08.09.1972

Shivaji  Vs.  Deoji and Ors.

Hon'ble Judges/Coram:
S.P. Bahrgava and S.R. Vyas, JJ.

Citation : AIR 1974 MP 123

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Sunday, 5 August 2018

Whether executing court can direct inquiry in to future mesne profits?

Learned counsel appearing for the appellants urged that the judgments of the executing court as well as the High Court are erroneous inasmuch as the reliance on the decision reported in Rajajai Singh v. Ranganathappa ILR 1986 (3) Kar 2985 and Gopalakrishna Pillai and Ors. v. Meenakshi Ayal and Ors. MANU/SC/0268/1966 : AIR1967SC155 , were totally misplaced. We find substance in the argument. A perusal of record shows that the decree-holder in their plaint did not pray for the grant of any future mesne profit. It is also manifest from the decree passed by the trial court that the court did not grant either past and future mesne profit to the decree-holder. Further, the decree-holder did not move any application either for amendment of the plaint by incorporating prayer for grant of future mesne profit or amendment of the decree for grant of future mesne profit. Under such circumstances, it was not open to the executing court to direct the enquiry for ascertaining the future mesne profit under Order 20, Rule 12, Code of Civil Procedure. It is true that in the absence of any prayer in the plaint, it is open to the court to grant past mesne profit. So far the future mesne profit is concerned, the court has a discretionary power to pass a decree directing the enquiry into the future mesne profit and the court may grant such mesne profit, although it is not specifically asked for in the plaint. In the present case, the court has not exercised its discretion to grant future mesne profit. In the absence of such an order or direction, it was not open to the executing court to direct for enquiry into the future mesne profit.

IN THE SUPREME COURT OF INDIA

Civil Appeal No. 5514 of 1994

Decided On: 30.01.2002

 K. Hatiza Begum and Ors. Vs. K.M. Usman Pasha and Ors.

Hon'ble Judges/Coram:
V.N. Khare and Ashok Bhan, JJ.

Citation: 2002(2) Apex court judgments 343 SC
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Whether court should direct future mesne profits even if it is not claimed by a party?

The Supreme Court in R.S. Madanappa Vs. Chandramma MANU/SC/0356/1965 : AIR 1965 SC 1812 & Bhagwati Prasad Vs. Shri Chandramaul MANU/SC/0335/1965 : AIR 1966 SC 735 has held that where in a suit for recovery of possession a claim for recovery of mesne profits for the period till the date of institution of the suit is made, even if no claim/prayer for recovery of future mesne profits from the date of institution of the suit till the date of delivery of possession is made, Order 20 Rule 12 mandates the Court to direct such an enquiry into future mesne profits.

F. The reason for the aforesaid is not hard to fathom; the intent is to avoid multiplicity of suits for mesne profits for successive period after the date of the institution of the suit; each of such suits would have to be filed for recovery of mesne profits for a maximum period of three years, to avoid the defence of the claim for mesne profits having become barred by time.

IN THE HIGH COURT OF DELHI

FAO(OS) 579/2013 & CM No. 20049/2013 (for stay)

Decided On: 13.05.2014

 Santosh Arora and Ors.Vs. M.L. Arora
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Whether decree for future mesne profits can be executed without payment of court fees?

With regard to future mesne profits, the plaintiff has no cause of action on the date of the institution of the suit, and it is not possible for him to plead this cause of action or to value it or to pay court-fees thereon at the time of the institution of the suit..
It is for this reason only that payment of Court Fees of future mesne profits decreed is a condition to the execution thereof and is not to be paid at the time of institution of the suit. 

Reference with advantage can also be made to the judgment of the Division Bench of the Kerala High Court in Saraswathi Pillay Vs. Parameswara Kurup MANU/KE/0180/1977 reiterating as under:-

It is pointed out on behalf of the 1st Defendant that the claim made in the plaint in respect of mesne profits is only at the rate of Rs. 5,000 per annum and it is contended that the decree cannot award anything more. This is to misunderstand the nature of the claim for mesne profits made in this particular case and the nature of such a claim in general. Having regard to the definition of mesne profits' in Section 2(12) of the Code, it is apparent that mesne profits are something which a Plaintiff cannot evaluate and which it is solely for the court to determine on the evidence before it. As in a suit for an account the Plaintiff can only mention rough figure as the amount which will be found due to him, and that is why the second paragraph of Order VII Rule 2 of the Code makes an exception to the general principle laid down in the first paragraph that in a suit for money the plaint shall state the precise amount claimed and says that when the claim is for mesne profits, or for an amount which will be found due on taking unsettled accounts, the plaint need only state approximately the amount sued for. Section 11 of the Court Fees Act, 1870 makes the position even clearer. It shows that the claim in a suit for mesne profits is only a rough estimate even if a precise amount is stated and that it is for the court to ascertain is the true amount. And this can be in excess of the amount claimed. For, it says that in suits for mesne profits or for an account, if the profits or amount decreed are in excess of that claimed, the decree shall not be executed until the difference in court fee is paid. In this particular case, the relief sought in respect of the mesne profits (by prayer No. 2 in the plaint is that the court should award all profits received by the Defendants from the property, both before and after the institution of the suit, at the rate estimated by the Plaintiff at 35,625 fanams (Rs. 5,000) per annum. This, it seems to us, is just what is required by Order VII Rule 2 of the Code

IN THE HIGH COURT OF DELHI

FAO(OS) 579/2013 & CM No. 20049/2013 (for stay)

Decided On: 13.05.2014

 Santosh Arora and Ors.Vs. M.L. Arora

Hon'ble Judges/Coram:
G. Rohini, C.J. and Rajiv Sahai Endlaw, J.

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Whether it is necessary to pay court fees on future mesne profits?

"If in a suit for past mesne profits, and possession the plaintiff also prays for a decree for future mesne profits then he is neither required to value the relief of future mesne profits nor pay any Court- fees thereon as in such cases he has no existing legal right to claim such future mesne profits and has no cause of action for them on the date of suit. 

IN THE HIGH COURT OF MADHYA PRADESH

Civil Revn. Nos. 41 of 42 of 1971

Decided On: 08.09.1972

 Shivaji  Vs. Deoji and Ors.

Hon'ble Judges/Coram:
S.P. Bahrgava and S.R. Vyas, JJ.

Citation : AIR 1974 MP 123

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Tuesday, 17 October 2017

Whether executing court can direct enquiry for future mesne profits?

Learned counsel appearing for the appellants urged that the judgments of the executing court as well as the High Court are erroneous inasmuch as the reliance on the decision reported in Rajajai Singh v. Ranganathappa [ILR 1986 (3) Karnataka 2985] and Gopalakrishna Pillai and Ors. v. Meenakshi Ayal and Ors. , were totally misplaced. We find substance in the argument. A perusal of record shows that the decree-holder in their plaint did not pray for the grant of any future mesne profit. It is also manifest from the decree passed by the trial court that the court did not grant either past and future mesne profit to the decree-holder. Further, the decree-holder did not move any application either for amendment of the plaint by incorporating prayer for grant of future mesne profit or amendment of the decree for grant of future mesne profit. Under such circumstances, it was not open to the executing court to direct the enquiry for ascertaining the future mesne profit under Order 20, Rule 12, Code of Civil Procedure. It is true that in the absence of any prayer in the plaint, it is open to the court to grant past mesne profit. So far the future mesne profit is concerned, the court has a discretionary power to pass a decree directing the enquiry into the future mesne profit and the court may grant such mesne profit, although it is not specifically asked for in the plaint. In the present case, the court has not exercised its discretion to grant future mesne profit. In the absence of such an order or direction, it was not open to the executing court to direct for enquiry into the future mesne profit. 
Supreme Court of India
K. Hatiza Begum And Ors. vs K.M. Usman Pasha And Ors. on 30 January, 2002
Equivalent citations: JT 2002 (2) SC 482, RLW 2003 (1) SC 110
Bench: V Khare, A Bhan
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Monday, 24 July 2017

Whether court can grant future mesne profits if it is not claimed by plaintiff?

 But where, as in this case, the suit is for the recovery of possession of immovable property and for past mesne profits, the Court has ample power to pass a decree' directing an enquiry as to future mesne profits, though there is no specific prayer for the same in the plaint.
Supreme Court of India
Gopalakrishna Pillai And Others vs Meenakshi Ayal And Others on 31 March, 1966
Equivalent citations: 1967 AIR 155, 1966 SCR (1) 28

Bench: Bachawat, R.S.
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Thursday, 11 May 2017

Whether court can grant mesne profits for more than three years in maharashtra state?

It is clear from Rule 12 of Order 20 of the Code of
Civil   Procedure   that   as   per   Bombay   Amendment   in
respect of mesne profit, there is no restriction of period
of three years.  The same was found in the earlier Rule
12 (1) (c) (iii) of Order 20 of Code of Civil Procedure.
Even this Court, in a case of Sadabai and another Vs.
Nivrutti   Vithoba   Takale   and   others,   reported   in   AIR
1979 Bombay page 29, has expressed a view that as per
the amended Rule, there is no restriction of three years
and   the   Bombay   Amendment   so   made   is   having   a
retrospective effect.  I do not find any substance in the
objection raised by learned counsel for the appellant
that the Trial Court has determined future mesne profit
exceeding the period of three years and the same is
contrary to the provisions of Order 20 Rule 12 of the
Code of Civil Procedure.  
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD
FIRST APPEAL NO. 652 OF 2008

 Uco Bank V  Asaram s/o Mohanlal Samdani,

CORAM : V.K. JADHAV, J.
Citation: 2017(2) ALLMR 92
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Thursday, 1 December 2016

How to determine cause of action and court fees for future mesne profits?

 I have, speaking for the Division Bench of this Court in Santosh
Arora Vs. M.L. Arora MANU/DE/1162/2014 observed that i) law permits a
claim for future mesne profits i.e. for a relief, the cause of action wherefor
has not accrued to the plaintiff on the date of the institution of the suit to be
made; ii) Order 20 Rule 12 of the CPC requires the Court, in a suit for
recovery of possession of immovable property and for rent or mesne profits,
to, besides passing decree for possession, also pass a decree for mesne
profits or direct an enquiry as to such mesne profits, for the period prior to
the institution of the suit if claimed and if within limitation on the date of
institution of the suit, and for the period, from the date of institution of the
suit until delivery of possession; iii) with regard to future mesne profits, the
plaintiff has no cause of action on the date of the institution of the suit, and it
is not possible for him to plead this cause of action or to value it or to pay
court-fees thereon at the time of the institution of the suit; iv) the limits of
the pecuniary jurisdiction of the Court of first instance does not impede and
is not a bar to award damages beyond its pecuniary jurisdiction. 
IN THE HIGH COURT OF DELHI AT NEW DELHI
Date of decision: 19th July, 2016
 CS(OS) No.2330/2008, IA No.19934/2015 (of the plaintiff for
direction) & CCP (O) No.30/2016.
MRS. SONI DAVE 
V
M/S TRANS ASIAN INDUSTRIES EXPOSITIONS
PVT. LTD.

CORAM:-
HON’BLE MR. JUSTICE RAJIV SAHAI ENDLAW
Citation:AIR 2016 Delhi 186
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Sunday, 7 August 2016

When plaintiff cannot apply for ascertainment of future mesne profits?

In view of these decisions, the principles can be analysed in the following manner:
(a) In case the plaintiff claims past and future mesne profits and such a claim is allowed in the decree, it is open to apply for the ascertainment of past and future mesne profits.
(b) If no claim is made at all for mesne profits, there can be no decree for it and then the question of ascertainment does not arise.
(c) If, however, the plaintiff claims mesne, profits but the claim is refused, then a petition for ascertainment is not maintainable.
(d) Even if the claim is for past mesne profits only, it is open to a court to allow future mesne profits as well and in that case plaintiff can apply for ascertainment of even future mesne profits.
(e) If the claim is for past mesne profits only and the court allows only this claim in the decree and keeps silent about the future mesne profits, the plaintiff cannot apply for ascertainment of future mesne profits as they will be deemed to have been refused.
Patna High Court
Tausif Ahmad And Ors. vs Munshi Baharuddin And Ors. on 1 January, 1800
Equivalent citations: AIR 1965 Pat 436

Bench: R Narasimham, T Nath
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When it is necessary to file separate suit for getting future mesne profits?

Though a prayer for future mesne profits need not and cannot be asked for in the plaint itself and such a relief can be sought by way of a petition under Order 20, Rule 12, Civil P.C. at any time during the pendency of proceedings, as long as the appeals are deemed be continuation of the suits, the suit must be deemed to be pending and the relief sought for can be granted at any time during the pendency of the appeals, but that relief if granted, by the Court, should be incorporated in the decree that becomes final. After the disposal of the appeal, if there is no such relief, the only recourse available to the parties appears to be by way of a separate suit. (Vide Tausif Ahmad v. Baharuddin, MANU/BH/0127/1965 : AIR1965Pat436 ).
Equivalent Citation : AIR 1974 AP 289
IN THE HIGH COURT OF ANDHRA PRADESH
Civil revn. Petn. No. 1061 of 1971
Decided On: 30.07.1973
Appellants: Veeramachaneni Gangadhararao
Vs.
Respondent: Kanuri venkatgeswara Rao and Ors.
Hon'ble Judges: A.D.V. Reddy, J.
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