A person has been using my property, located in Chembur, Mumbai, for commercial purposes without my permission for several years. Apart from seeking possession, can I also claim financial compensation or mesne profits for the unauthorised use of my property during this period?
Yes, and this is a genuinely important remedy that property owners in Mumbai often overlook, focusing entirely on recovering possession while forgetting that the law also provides for compensation covering the period their property was wrongfully used by someone else. Where a person has occupied or used your property without authority โ whether through illegal possession, trespass, or continued occupation after their right to be there has ended โ you are entitled to claim what is legally termed "mesne profits" under Section 2(12) of the Code of Civil Procedure, 1908, which represents the profits the wrongful occupant actually received or could have received through reasonable diligence from their unauthorised use of the property.
Mesne profits are typically calculated based on the fair rental value the property could have commanded during the period of illegal occupation, and courts in Mumbai routinely order this compensation alongside a decree for recovery of possession, recognising that merely restoring possession without addressing the financial loss suffered during the wrongful occupation period would leave the true owner inadequately compensated for the actual harm caused. Where the illegal occupant actually generated income from the property during this period โ for instance, by subletting it or using it for business purposes โ the owner can claim compensation based on this actual profit, which may sometimes exceed simple fair rental value.
To claim mesne profits, the property owner typically includes this claim as part of their suit for recovery of possession, seeking both restoration of possession and an accounting or determination of mesne profits for the period of illegal occupation, calculated either up to the date of filing the suit with a further claim for the period until actual possession is restored, or through a more detailed accounting process if the exact figures require investigation. Courts can appoint a commissioner under Order 26 Rule 9 of the CPC specifically to assess and calculate the appropriate mesne profits where the calculation involves complex factors like business income generated from the property.
Beyond mesne profits specifically, where the illegal use has caused actual damage to the property itself โ such as unauthorised construction, removal of fixtures, or deterioration due to neglect during the wrongful occupation โ separate compensation for this damage can also be claimed as part of the same suit, calculated based on the cost of restoration or the diminution in property value caused by the illegal occupant's conduct.
Given how mesne profits and property damage compensation require careful calculation and evidence presentation, building a comprehensive claim from the outset significantly improves your recovery. Our legal experts at Aapka Legal Advice help clients calculate and pursue full compensation, including mesne profits, alongside possession recovery suits. The Top Property Lawyers in Mumbai team has successfully secured substantial mesne profits awards for clients whose Mumbai properties were illegally occupied, supported by a panel of retired judges and criminal lawyers for cases involving forceful or fraudulent occupation. If your Mumbai property has been illegally used by another party, remember that recovering possession is only part of the remedy โ pursuing full compensation through mesne profits ensures you're properly compensated for the entire wrongful occupation period.
