In Brief
Bureau of Indian Standards sought mesne profits from Goodwill Theatres Pvt. Ltd for wrongfully retaining possession of a property. The trial court awarded compensation at Rs. 140/month, while the High Court raised it to Rs. 265/month using a five-percent-of-property-value formula. The Supreme Court reduced the mesne profits, holding that they must be based on the value of actual land use, not property value or estimated returns. Following constitutional principles, the Court confirmed that Rs. 1,83,00,000 (for the period June 2000–April 2004) as mesne profit with interest was sufficient; no further payment was required."
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